KevinDayton.com » united states http://kevindayton.com Tech, music, and religious nerdery since 1978. Wed, 18 Jan 2012 19:27:46 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Will China make its currency convertible? Or would it rather own the United States? http://kevindayton.com/2009/08/04/will-china-make-its-currency-convertible-or-would-it-rather-own-the-united-states/ http://kevindayton.com/2009/08/04/will-china-make-its-currency-convertible-or-would-it-rather-own-the-united-states/#comments Tue, 04 Aug 2009 17:15:04 +0000 kevindayton http://kevindayton.com/?p=344 China is considering making it’s currency convertible and thus, potentially open for trade.  This blog post by Tim Collard of The Daily Telegraph (London) looks at why they are considering this, but more importantly, the frightening reason for Americans that they are in no hurry to do so.

Yes, the non-convertibility of their own currency does mean they are forced to maintain massive dollar reserves; but they are in no hurry to replace the dollar with the renminbi as a reserve currency. It would look good: but they can live with massive holdings of US Treasuries, warming their hearts with the thought that democratic (small “d”) irresponsibility is fast turning the USA into a wholly owned subsidiary of the [People's Republic of China].

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