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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: RealMuLan who wrote (34240)5/22/2003 9:13:13 PM
From: Jim Willie CB  Read Replies (1) of 74559
 
you might misunderstand what I mean with imported price inflation from China

we import a tremendous amount of goods from China
(as well as Taiwan, Korea, Singapore)

when the yuan is revalued upward, all other non-Japan exporter nations will correspondingly raise their currencies
(it aint gonna be 5-10 years, no way)

when this happens, the product prices in American stores for these imported products will go up, from currency translation alone

I dont factor in yet the rising demand in China and India
that is separate

thus we call it "imported price inflation"
we already import their goods
the prices will rise from the currency shift
it will be very nasty, reversing 20 yrs of exported inflation whereby the USGovt would print money to pay our bills, and that money would end up in Asian banks
(case in point, Thailand in mid-1990's, breeding Asian Meltdown)

/ jim
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