On 8/9/07, sartesian <[EMAIL PROTECTED]> wrote: > And the greater damage would be done to whom? The US ruling class, or the > Chinese? Where would the impact be more likely to trigger social upheaval, > the bugaboo of capitalists, emerging and arthritic, everywhere, called class > struggle, Shanghai or Long Beach? >
I think the correct answer is both. If the Chinese really liquidate even a quarter of their dollar portfolio I can't see how a complete world-wide financial collapse far more severe than the 1998 Asian crisis, can be avoided. Which is why there seems to be a consensus that it will never happen. The Chinese can bark but they cannot bite. It seems like a risky tactic though. They may just end up strengthening the Lou Dobbs faction. -raghu.
