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View Full Version : China's demands for U.S.,,,



Tribal Warrior
13th November 2008, 19:17
I heard on the American Advisor radio show today, that China has 6 demands for U.S. or they'll dump the USD$. I forget where he said the information came from. Anyone else hear this, have any more information on it?

research24
13th November 2008, 19:39
Doesn't matter. It is absolutely impossible for China to dump the dollar, mainly because it is not theirs to dump. Those dollars expressed as China "reserves" are there to back up deposits of US and Japanese corporations who run factories in China and export those goods. The reserves are a function of that business. It is no more possible for China to replace the dollar with the euro or whatever, than you could spend reminbi in Miami. Those are banking reserve dollars to facilitate manufacturing and trade BECAUSE that trade is with the US. They cannot substitute some other currency because WE don't accept other currency.

All this talk about China dumping the dollar is done by people utterly ignorant of what they are talking about.

argentos
13th November 2008, 20:50
Doesn't matter. It is absolutely impossible for China to dump the dollar, mainly because it is not theirs to dump. Those dollars expressed as China "reserves" are there to back up deposits of US and Japanese corporations who run factories in China and export those goods. The reserves are a function of that business. It is no more possible for China to replace the dollar with the euro or whatever, than you could spend reminbi in Miami. Those are banking reserve dollars to facilitate manufacturing and trade BECAUSE that trade is with the US. They cannot substitute some other currency because WE don't accept other currency.

All this talk about China dumping the dollar is done by people utterly ignorant of what they are talking about.


As one of those ignorant ones, let me ask you this. If China's exports to North America and Europe have been more than decimated, which they have,


http://www.chinalawblog.com/2008/11/china_as_downturn_neophyte_if.html
The downturn in shipping is having a profoundly negative effect on all segments of China's maritime industry.
Shipbuilders are finding that their shipbuilding contracts are being extensively breached. Since shipbuilders in China are mostly new companies, they are heavily in debt. These breaches threaten the life of the entire shipbuilding industry in China.
Vessel owners are finding that charter parties are refusing to pay charter payments. Some charter parties are demanding revisions to charter agreements. In more extreme cases, the charter parties are simply abandoning vessels in mid-voyage. [Editor's note: charter party agreements are essentially agreements to rent out a ship]
Shippers are finding that their customers are refusing to honor long term shipping agreements and are demanding extreme reductions in shipping rates.
Ports are finding their volumes rapidly decreasing. This is an especially serious problem with smaller and newer ports. It is also a problem with ports in the middle of ambitious expansion plans.
and their main trade is increasingly interasian, won't their reserves be converted out of dollars in the medium term?