Quote:
Originally posted by Diarrhoea
They're doing it to keep their economy going strong (probably won't work but still), which would benefit the world economy, including the US.
They're also doing it to be an IMF reserve currency, which requires more flexibility in the currency rates, and America are feeling threatened by it, and thus are trying to paint this badly.
I think this will end up helping the American economy rather than harming it, it's just that rich people saw it as Chinese desperation and initiated a sell-off.
Why do you think it will harm the economy, other than Trump saying so? Are you saying China shouldn't fight for their own national interests, as America have been doing for a century?
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China needs to be a responsible player in the global market place they can't start currency wars and expect to be added as a reserve currency. They just devalued their currency by 2% a few week ago, the biggest one-off devaluation of its currency in 20 years.
Everything from luxury goods to mining was hit hard by this across all countries. No it's not good for the US when they manipulate their currency, the dollar becomes stronger across the board, no one want's to invest in building here or starting a company when they can do it dirt cheap in China.
When everything in the US costs more how does that help the US?
Investors have been perched waiting for China to drop so they can swoop in and make their millions. Once China is done sucking up all the wealth it can get (it will) and entrepreneurs finish fighting over control (predictions are only 3-5 major investors will sustain significant growth in Chinese market shares) this will reverse a biT.