By James Smith
The United States has been experiencing a recent wave of cyber attacks from both Lulzsec and Anonymous, but recently there has been speculation that some of the transgressions may have been carried out by China. If this proves to be true, or if the United States posture against China because they believe they are under attack the USD will see a lot of trouble on the online forex exchange. China and the United States do enjoy a very close relationship when it comes to trade and money; however, if there should be a rift that arises between the two both economies would shatter. The US goes into a very large amount of debt where China is concerned every year, and it has not made a valid effort to pay back this debt as of yet.
China is becoming agitated at the apparent unwillingness of the US government to pay off its debts. This has caused a good deal of hostility towards purchasing more US debt as far as China is concerned. There has already been rumors of China selling off massive amounts of US treasury bonds and other securities, and if they sell enough there will be a lot of damage to the US dollar. The problem for China is that they must wait until they get rid of most of their US debt before a massive sell off. If China were to sell all the bonds they own at once then they would decrease in value and China would lose money, and this is the only reason the Chinese have not yet taken this course of action.
China and the United States are both in extremely difficult positions, and unfortunately there is no easy answer to the problem. The United States is going to have to absorb the debt they have gotten themselves into sooner or later, and if they do not then there are a good deal of possible consequences in store for them. Austerity measures must reach to new heights if the United States is ever going to pay off its debts and once again become a stable nation. If problems should arise between the US and China then the USD will see a lot of trouble on the horizon with regard to the online forex exchange. Current reports suggest that the United States suspects China of cyber attacks, but the Chinese are denying these reports vehemently.
About the Author
The author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to stay up to date with the latest forex quotes.
