Hi Björn,

On 2017-08-28 18:27:22, you wrote to me:

 WvV>> That is smart of them, because the dolar has become cheaper compared
 WvV>> to other currencies.

 BF> What "dolar" are you referring to? 8-)

Ok, typo, I meant the US Dollar.

 BF> How does using CAD or AUD make their products seem cheaper than
 BF> using USD?

That's not what I meant. Compared to the CAD, AUD or CNH the value of the USD
has gone down. So if they list their prices (which stay the same) in CAD or AUD
instead of USD, they get more money when they later exchange the foreign
currency to renminbis.

 BF> And no, the USD has not become cheaper lately, rather the
 BF> opposite -- at least in Sweden...

The value of the USD has gone down against most other currencies. Also the SEK.
USD/SEK was about 9.2 at the beginning of this year and now is 7.95.

 WvV>> China is also the biggest creditor for the US in state bonds. So if
 WvV>> the dollar becomes even cheaper, they would loose big on that.

 BF> You don't understand. When they go on a gold buying spree, they use
 BF> USD to pay for the gold. The USD that they try to get away from ASAP
 BF> for some reason...

I understand that, but than they shouldn't at the same time buy US state bonds.
Those bonds are going to be payed back at a later date by the US state in US
dollars. If the dollar at that later date would be worth half as much as today
(for instance) the Chinese would loose half their money on those bonds. The
Chinese are now the biggest creditors in the world to the US, because they own
the most of those bonds. About 1,15 billion (10^12) (in Euros) as of June this
year.

Bye, Wilfred.

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