My scenario for a new Bretton Woods is that everyone borrows money from China for a couple decades (they sell China bonds), then they all agree to screw China. The Yuan is not a reserve currency, so China’s economy is vaporized in a single day and the rest of the world laughs then gets back to rebuilding its manufacturing base without Chinese competition.
Right there you solved:
- debt
- trade deficits
- chronic global unemployment
So…lunch?
