Clinton on Letterman said that the reason the US has not gone
after china for their currency manipulation is because the US is dependant on China for buying its debt. Thus a trickle down economy (tax cuts) could take place where trade deficits were the norm in the USA. China would buy the debt, the USA would not touch China. I add, all the while the corporations were making money hand over fist.
It's very difficult to take that criticism seriously when one considers the fact that China's fiscal stimulus dwarfed our stimulus by many trillions. You must realize that this complaint is coming from a country which expanded its own money supply by 20% annually on average over the last decade. Do you honestly believe they would be eager to sell their dollar reserves? And buy what instead?
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