Last week we debunked the myth that if every man in the PRC Armed Forces jumped at the same time, it would tilt the Earth’s axis of rotation (fact: since the Earth already rotates on as axis that is tiled 23.5° from center, the act would actually straighten the planet’s rotation). In this week’s installment of our long running series “China Myths,” Stinque takes a look at the widely held belief that were China to dump all its U.S. Treasury bills onto the market at once, it would eviscerate the dollar and devastate the U.S. economy. This long held belief is, in fact, a myth. Allow Princeton economist and Nobel Laureate Paul Krugman to explain:
In the early years of this decade, China began running large trade surpluses and also began attracting substantial inflows of foreign capital. If China had had a floating exchange rate — like, say, Canada — this would have led to a rise in the value of its currency, which, in turn, would have slowed the growth of China’s exports.
But China chose instead to keep the value of the yuan in terms of the dollar more or less fixed. To do this, it had to buy up dollars as they came flooding in. As the years went by, those trade surpluses just kept growing — and so did China’s hoard of foreign assets.
Read more »
NOJO • TRUMP TARIFFS UNLEASHING FURY OF CANADIANS - AND THEIR LEGENDARY SNIPERS! @ManchuCandidate: I have birthright citizenship in Cascadia, so I think I’m good.
MANCHUCANDIDATE • TRUMP TARIFFS UNLEASHING FURY OF CANADIANS - AND THEIR LEGENDARY SNIPERS! @nojo: Only the sane parts... like the West coast, New England (minus the Bruins and…
NOJO • TRUMP TARIFFS UNLEASHING FURY OF CANADIANS - AND THEIR LEGENDARY SNIPERS! @ManchuCandidate: So, can you guys annex us now?
MANCHUCANDIDATE • TRUMP TARIFFS UNLEASHING FURY OF CANADIANS - AND THEIR LEGENDARY SNIPERS! PP is done. 51st state, my ass.
NOJO • TRUMP TARIFFS UNLEASHING FURY OF CANADIANS - AND THEIR LEGENDARY SNIPERS! @FlyingChainSaw: No, but my government was.
FLYINGCHAINSAW • TRUMP TARIFFS UNLEASHING FURY OF CANADIANS - AND THEIR LEGENDARY SNIPERS! @nojo: Were you kidnapped?
NOJO • TRUMP TARIFFS UNLEASHING FURY OF CANADIANS - AND THEIR LEGENDARY SNIPERS! @FlyingChainSaw: I’ve spent the past five weeks looking like Astronaut Dave going through the…
FLYINGCHAINSAW • TRUMP TARIFFS UNLEASHING FURY OF CANADIANS - AND THEIR LEGENDARY SNIPERS! NOJO - HOW COME WE'RE NOT COVERING KRASNOV?
NOJO • The Reckoning Four years later: Uhhh, how’d that work out?
JNOV • Hanging by a Thread @nojo: yeah. I had a feeling you’d say that.