DislikedHow does the saying go - if you owe the banker $1 mio then you have a problem, but if you owe the banker $1 bio, or $800 bio - then the banker has a problem.
If China were to float its currency you'd see how bubblicious its economy is pdq...Ignored
I don't see them doing that, it would mean millions unemployed and a setback of at least a decade. Right now there is cheap unlimited capital available over there to sustain their 20% growth numbers, unpegging would put an immediate stop to that.
But you are right though about the money analogy. That's probably why China has been a net seller this year. Even though yields are dropping and they are losing out on the value of the paper.