Yet another government official who thinks that changing the currency in which China conducts trade and parks excess savings is like changing the color of his shirt. If China stops buying dollars and starts selling, it must either allow its current...
scmp.com/economy/china-…
scmp.com/economy/china-…
...account surplus to transform into a current account deficit, or it must find some other country willing to run the current account deficits which are currently absorbed by the US. It clearly cannot afford the first, it is unlikely to find the second, and there are no other...
...options. In the end it is more likely that the US will finally take steps to prevent foreigners from accumulating dollars than it is that China will choose to stop accumulating dollars.
