Re:More than half of American retailers didn't pay their ren...
by bobthepanda on Thursday June 04, 2020 @05:55PM
(#23422379)
> The problem with betting against the dollar is that the West is to a great extent dependent on the US
Not even just the West. The Asian "tiger" economies are all heavily export oriented. If China, Japan and Korea cannot sell to the US, there is no viable plan B; Europe is in no state to absorb all of that, to say nothing of poorer countries.
Chinese consumer purchasing power has certainly grown, but not enough, and if anything the Chinese social safety net is thinner than the American one and they have still not fully recovered from their lockdowns. And CNY has a long way to go before it's as liquid as USD.
Not even just the West. The Asian "tiger" economies are all heavily export oriented. If China, Japan and Korea cannot sell to the US, there is no viable plan B; Europe is in no state to absorb all of that, to say nothing of poorer countries.
Chinese consumer purchasing power has certainly grown, but not enough, and if anything the Chinese social safety net is thinner than the American one and they have still not fully recovered from their lockdowns. And CNY has a long way to go before it's as liquid as USD.