what's the likelyhood of the U.S. taking action against China's undervalued currency?

PreTurb

A couple background articles:

news article
Krugman article

So, is the U.S. going to force the issue here?

Why or why not?

If yes, what will this mean to PM's?

mhammerman

Complicated issue here. Actually, Japan likely holds more US debt than China. Estimated in March of '10 in round numbers, Japan had 768 B in US debt and China had 755 B. It is estimated that there are intermediate holdings of U S treasury securities in addition to the actual public holdings. It is estimated that China actually holds 1.5 T in US debt. Wash Times article

For reference, our GDP is around 15 T/yr (14.6T), just a little more than our national debt that is about 13.5 T.

Re: the OP, it kind of reminds me of the prisoner that has a gun to his head and he's ordering his captor to put down the weapon.

Edited to add the complication of the issue. Chinese situation

RGJohn

The US is only in a position to supplicate, not to dictate. I do not rejoice in that. In many respects, we have squandered it.

mrearlygold

Take action? What action would that be? Ask to borrow more?

Wolf359

Take action?

Besides handing out money, what do they know to to?

Justacommeman

Pretty please?

MJ

mrearlygold

Maybe one of the useful idiots will chime in to tell us how it's all relative

Justacommeman

<< <i>Maybe one of the useful idiots will chime in to tell us how it's all relative >>



You need a hug or a homemade pierogi

MJ

mrearlygold

<< <i>

<< <i>Maybe one of the useful idiots will chime in to tell us how it's all relative >>



You need a hug or a homemade pierogi

MJ >>




I've got both

AND the best chrusciki in the world

ProofCollection

They come out with the same news every few months. There's nothing the US can do except beg.