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Post #46153

Author
Bossk
Parent topic
Evil Empire...
Link to post in topic
https://originaltrilogy.com/post/id/46153/action/topic#46153
Date created
27-Apr-2004, 4:54 AM
And if China would disassociate the value of its yuan from the value of the U.S. dollar, their economy would become even more valuable because the value of their monetary unit would shoot through the roof. But they're afraid of the value of the Yuan becoming too out of control and then spiraling downward afterwards. Which is a legitimate fear. Right now they have a 1:1 equivalency between the Yuan and the Dollar making trade with the U.S. very easy and that equivalency is locked in place. As the value of the dollar goes up (actually, it's down lately), the Yuan follows accordingly. And the U.S. loves it. But China is holding itself back economically in the process.