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View Diary: China Cuts US Credit Rating. Obama Cuts Hawaii Vacation Short. (171 comments)

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  •  Why, I like being able to take possession (8+ / 0-)

    of chinese resources, labor, social costs, environmental costs and all the other costs they bear when they sell us a flatscreen TV or an iPad or whatever for overvalued fiat dollars. They get pieces of paper that guarantee only that if they own Uncle Sam taxes they will be accepted in payment. What else does that dollar guarantee them? They can only buy what a willing seller will sell. Personally, I think the Chinese are fucking stupid to do business with us in dollars, but that's the deal. If you want to do business with us, you do business in dollars. You will always get paid because we can always make more dollars - never a problem. And as long as the economy is cold, productive output down, unemployment high, dollars added to the economy only do good. In a hot economy it's different, there's no need for additional fuel, and overheating - inflation - becomes the risk.

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