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Old 08-08-2007, 11:40 AM
The once and future king The once and future king is offline
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Join Date: Aug 2004
Location: Iowa, on the farm.
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Default Re: China threatens \'nuclear option\' of dollar sales

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At some point China's internal market is going to mature. Then it wont need to exports so much to keep its economy going.

Then it can exercise this option at its leisure.

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Not necessarily true. Japan's economy is certainly mature and they are still heavily dependent on exports. The U.S. & China are going to be dysfunctionally co-dependent for the forseeable future.

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Does Japan have an internal market of 1 billion people? 1 in every 6 people on earth are part of China's internal economy. China could have the largest economy in the world and never export a thing.

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And why is it that they don't already, and if they lose the US market due to their own obstinance, what makes you think they wont return to the policies that put them so far behind to start with?

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I said "at some point" meaning that at some point in the future China's internal economy will be mature. At this point .e.g. NOT NOW it can pull the nuclear dollar trigger with much less fear of catching radiation sickness from the fall out.

Unlike Japan of course which will allways need external markets because its internal market isnt comprised of 1 in 6 people on the planet.
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