China has the 765Billion US Treasure Bond ,so if China sell out the bond will the USD Drop and devalue and the U.S economy will be even worse? is that why the economist said China in controlling the world economy and controlling is USD's Rate|||No, we can't say RMB is more powerful than USD. USD is still the 'big brother' since USA is the top importer for nearly all countries' goods.
However, China holds the LARGEST foreign exchange reserve in the world i.e.
USD 1,953 Billion (Mar 2009) and most of it in USD. This amount is more than 27% of the total world foreign currency reserves. In other words, China indeed can exert control on the USD rate.
Foreign currency reserves can be used as a currency warfare and just imagine China start dumping USD what will happen to it.
No. Treasury bond is just part of it. Selling the bond will not affect the USD. But if China sell its USD reserve to devalue the USD when USA are repaying the bonds, the debt amount will be few times higher ... and what will happen to USA?|||At this moment China economy is the strongest in the world. Why u praised US so much. Sikit-sikit USD.
Belajar lah respect lain-lain negara sama.
Even though I am not a Chinese (Mamak) I proud of China prosperous.
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