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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (26806)1/4/2003 12:39:54 PM
From: Jim Willie CB  Read Replies (3) of 74559
 
I think China will soon become such a financial thorn to USA,
that we will make political sacrifices in return for Beijing to spend some political capital

I believe the USA will rationalize that HongKong "worked out well in transition", so let's reduce tensions by stepping back (not forward) from Tiawan

we in the USA will demand two things
1. continued purchase of USTBonds
2. revaluation of YUAN upward by 20-30%

I believe China will agree to both
in return we back off supporting Taiwan
we are far too pre-occupied with Islamics and Oil Supplies

I believe China will screw the USA on item#1, as they gradually secretly convert their USTBonds into Gold and EuroBonds
but their main stealth maneuvers will be accumulating gold
because a much larger gold treasury ensures future decades of prosperity through growing bank reserves, potential for very large-scale loan portfolios to build up their infrastructure (as you constantly remind us about)

item#2 is critical for relieving the pricing pressures across the entire US Economy spectrum
we will need some concession from the Chinese here
they have set themselves up nicely with artificially silly low YUAN valuation now

the biggest question on my mind with China is what will the USA be coerced into doing in return for fixing the Yuan peg ???

Taiwan is sliding down the list of US priorities, even as other threats are more clearly being identified

North Korea will be a very revealing test
will China step in to relieve bilateral tensions?
if they do, will we owe them even more visavis Taiwan?

big issues, ChugsMan
I dont believe I have ever seen USA weaker strategically
I am never fooled by our large military presence
reminds me of big dumb muscleheads, whose emotions are weak, whose egos are pea-sized, and who can be led around by the nose, if only the woman can exert the right pressures

/ jim
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