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A Brief Commentary on Financial Crises

Posted by Matt in August 11th, 2007

Ambrose Evans-Prichard’s recent piece, China threatens ‘nuclear option’ of dollar sales, sounded a further alarm. The foolishness of trading with Communist China now comes into sharp focus. The same can be said for free trade with all those countries that are not truly free. According to Prichard, “The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of U.S. treasuries if Washington imposes trade sanctions to force a yuan revaluation.” This would almost certainly crash the dollar, with devastating consequences for the global economy. The Chinese can effectively dictate U.S. economic policy. “We can destroy your currency,” they are saying. “We have this option.”

By J. R. Nyquist

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