by Yanstari on March 30th, 2009

Yanstari

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The Chinese are murmuring about switching their investments away from the US dollar into other currencies. What would happen to the US economy in this situation?

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  • by halbhh on April 7th, 2009

    halbhh

    Slightly higher interest rates, but not by a large amount. I'd guess about 0.5% higher in general, mortgages and treasuries. Note that these rates will rise some eventually (within years at the longest) even if China continued to by our bonds.

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