Somebody has to eat the surpluses. It used to be
The problem from the perspective of the
There is a phenomenon that helps this take place, and it’s really what generated the financial crisis. If the
There’s a weird stability to this, because the Chinese can’t do anything about it. If they try to get rid of their dollars, they can buy Euros. But then the Europeans have the choice of letting the Euro go to $3.00 or buying the dollars themselves. And then they go back and buy the Yuan, and then the Chinese have the choice of letting the Yuan go up and undermining their exports.
The problem comes with consumer demand in the