Comments on: China’s Global Currency http://www.brothersaustrian.com/chinas-global-currency/ An economics blog in the Austrian tradition, written by two brothers, one teacher and one bond trader Thu, 05 Aug 2010 21:16:41 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Treasuries Getting Thumped… | The Brothers Austrian http://www.brothersaustrian.com/chinas-global-currency/comment-page-1/#comment-24 Treasuries Getting Thumped… | The Brothers Austrian Thu, 21 May 2009 22:30:05 +0000 http://www.brothersaustrian.com/?p=127#comment-24 [...] Is this the start of what Teacherman was talking about? [...] [...] Is this the start of what Teacherman was talking about? [...]

]]> By: Bondsman http://www.brothersaustrian.com/chinas-global-currency/comment-page-1/#comment-17 Bondsman Wed, 25 Mar 2009 20:56:00 +0000 http://www.brothersaustrian.com/?p=127#comment-17 China can buy less US debt but it is doubtful they will be net sellers, more or less they just may not buy as much. John Mauldin notes that as long the U.S. in net importer of Chinese good China will likely still gobble up our debt. If they don't the yuan will appreciate making their goods cheaper for the US to buy and thus hurt their economy which is so depend on selling to the U.S. I do give credence to Teacherman's concerns and here is why. As Mauldin notes as long as we buy from China... Well I could for see a situation (See The Consumer is Tapped! ) in which the U.S. consumer retrenches (consumer spending falls to 60% of GDP vs. the current 69% of GDP) and we thus import a significantly less amount of Chinese goods. Then the Chinese have less dollars to recycle and treasury refunding become a much more ominous task. China can buy less US debt but it is doubtful they will be net sellers, more or less they just may not buy as much.

John Mauldin notes that as long the U.S. in net importer of Chinese good China will likely still gobble up our debt. If they don’t the yuan will appreciate making their goods cheaper for the US to buy and thus hurt their economy which is so depend on selling to the U.S.

I do give credence to Teacherman’s concerns and here is why. As Mauldin notes as long as we buy from China…

Well I could for see a situation (See The Consumer is Tapped! ) in which the U.S. consumer retrenches (consumer spending falls to 60% of GDP vs. the current 69% of GDP) and we thus import a significantly less amount of Chinese goods. Then the Chinese have less dollars to recycle and treasury refunding become a much more ominous task.

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