He has been doing this regularly. Most countries earn their source of foreign currency in Dollars, so even if China is letting exchange rate appreciate, these countries will be strangled and have to pay more to get same goods from China. So, they’ll work harder, try to export more to the U.S.
It’s good that he is talking about capital losses though, with dumping Treasuries or Dollar. So, there’s no dumping, only slowly going off it, even by his logic.
Despite all the claims, I believe most of these countries are buying up gold as a speculative asset, they buy it using Dollars which they earn, with the option of dumping it on others (preferably foreign speculators) for more Dollars. I don’t think there is a very deep market for Gold outside the Dollar one.
He has been doing this regularly. Most countries earn their source of foreign currency in Dollars, so even if China is letting exchange rate appreciate, these countries will be strangled and have to pay more to get same goods from China. So, they’ll work harder, try to export more to the U.S.
It’s good that he is talking about capital losses though, with dumping Treasuries or Dollar. So, there’s no dumping, only slowly going off it, even by his logic.
Despite all the claims, I believe most of these countries are buying up gold as a speculative asset, they buy it using Dollars which they earn, with the option of dumping it on others (preferably foreign speculators) for more Dollars. I don’t think there is a very deep market for Gold outside the Dollar one.