China has been engaging in classic mercantilism
but on a much grander scale than has ever been
seen before.

Thus the consequences will probably be on a grander scale as well. The idea that an authoritarian government can overcome natural law be decrees and draconian punishments is ludicrous.

Usual outcome is something approaching a currency destruction. This is why Buddy’s
favorite panglossian picked the Yuan as one that would “go Weimar”.

Euro is looking a little pale around the gills too. Another one of Pritchard-Evans
predictions.

In other words, it looks like those other folks have made the same mistakes we have, made them in even larger degree, and have less ability to correct than we do.

We got us a world-wide wringout going. And like Wretch noted, we are the ones who can ride it out the best without going into outright deprivation.

I am particularly amused by the nail-biting
over what would happen in the Chinese decided they wanted to—or had to—ditch all those T-Bonds they have bought.

Why, the consequences would be that (don’t tell anybody now) all of us could buy Treasuries at steep discounts, thereby assuring eventual capital gains and giving us a respectable cash flow in the meantime.
What a revolting development! Herbert Hoover Obama does not like it one bit.