Sunday, August 12, 2007

Uh, on second thought

The US dollar plays an important role in the global monetary system and dollar assets are an important part of China's foreign exchange reserve, the central bank said yesterday.

I noted last week's comments by Chinese economic eggheads Xia Bin and He Fan, but didn't have time to comment on them. But I did wonder if they had considered the repercussions if their country did cause a dollar crash. Can't you see the protests when all of those Chinese factory workers suddenly find themselves jobless when Americans decided that keeping their homes took precedence over buying their cheap poisonous crap?

Tienanmen would look very good by comparison, at least from the Chinese leadership's point of view.

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