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?
by 
Yanstari
ANSWERS: 5
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i believe they have around $2 billion in there vaults and the american goverment are running the printing press and churning out the dollars which i am sure will have a negative impact on the usd,this could be a reason the chinese are murmuring about switching.
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Considering the US is now owned by China, it wouldn't be a good thing. The entire country would go bankrupt and collapse like Latvia and Greenland have done
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Of course they are complaining.The problem is.Changing investments would lead to problems for them as well.How many countries could shoulder that kind of finacial burden without risk to themselves?....By doing that they would ruin the dollar.Making the investments they hold worth alot less than they are now.The tightly regulated Yuan might not appear to suffer,but,all thier dollar based investments sure would.Is My opinion.Doesnt make it right or wrong.Just mine.
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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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The best part is there is no country in the world China can go to comparing US. There is no country in the whole world consumes as much as US would. There is no market like US. 26% of resources of this world is consumed by our rich nation. China will not go anywhere. Also US with it's might will make sure nobody will receive China too if they attempt to do it. America has a combination of huge market with muscle power and civic citizens. This is the beauty of this nation. Today it is combination of lots of cool things a materialist superpower can have.
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