tag:blogger.com,1999:blog-3445604088553300714.post6043331920110867229..comments2024-01-29T14:08:28.817+05:30Comments on BJ's nocabbages: Book Excerpt: The Dollar TrapBharat C. Jainhttp://www.blogger.com/profile/10575760947599357075noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3445604088553300714.post-91095766938042604922016-06-19T17:29:19.623+05:302016-06-19T17:29:19.623+05:30Nicely written. Looks like China's role in uph...Nicely written. Looks like China's role in upholding $ as a reserve currency is under appreciated. Out of its $3.4 trillion forex reserves, $1.8 trillion are held in dollar. <br /><br />Both US and China benefit in following ways:<br />1) US can continue to spend more at the expense of poor Chinese citizens.<br />2) China can continue to export more to the US.<br />3) China also "manages" Yuan ex-rate to keep its exports cheap.<br /><br />Now with the inclusion of Yuan in IMF-SDR, China looking more inward and other projects such as One Road One Belt projects, it will be interesting to watch the whether China will continue to reduce its dollar reserves. On a side note, despite of all the talk of China-containment and US' Asia pivot, both countries know that it any aggression between is nothing but "mutually assured destruction" and the fate of global economy would go haywire. Indian establishment realizes this very well and despite bonhomie between US and itself, it balances its relationship with China.Madhu Rayavarapuhttps://www.blogger.com/profile/13080970060925622831noreply@blogger.comtag:blogger.com,1999:blog-3445604088553300714.post-76313293541296093652016-06-19T14:23:20.370+05:302016-06-19T14:23:20.370+05:30Thank you for sharing sir. Very informative :)Thank you for sharing sir. Very informative :)Mohit Golchhahttps://www.blogger.com/profile/02893836135311097295noreply@blogger.com