chad
26th April 2010, 12:33 PM
http://www.youtube.com/watch?v=wYuLjGQQ-jg&feature=player_embedded
here's a part i found particularly interesting.
china keeps buying treasuries because the yuan is tied to the dollar. when oil gets to $150 a barrel:
1. people will no longer be able to afford to buy a lot of luxuries.
2. the cost of goods from china will go up, because of the increased oil costs to make them and to get them here.
3. people will stop buying stuff from china (see point #1)
4. china will say, oh well, no reason to peg the yuan to the dollar anymore, we lost our u.s. market.
5. china will stop buying treasuries.
6. dollar/united states implosion.
interesting.
here's a part i found particularly interesting.
china keeps buying treasuries because the yuan is tied to the dollar. when oil gets to $150 a barrel:
1. people will no longer be able to afford to buy a lot of luxuries.
2. the cost of goods from china will go up, because of the increased oil costs to make them and to get them here.
3. people will stop buying stuff from china (see point #1)
4. china will say, oh well, no reason to peg the yuan to the dollar anymore, we lost our u.s. market.
5. china will stop buying treasuries.
6. dollar/united states implosion.
interesting.