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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: TobagoJack who wrote (3123)7/23/2003 11:00:20 AM
From: Wyätt Gwyön  Read Replies (2) of 4904
 
hi Jay,

thanks for those interesting stats and info on China. i am very interested in learning more about them as they are now playing such a critical role going forward.

if it makes any difference at all to anyone around the world, they can dollarize their currency regimes without affecting domestic situation one way or another

yet we have seen many cases where fixed pegs fail to hold. Argentina went to the downside and Japan to the upside. the Japanese were very reluctant to give up their 360 JPY/USD peg, but they had to. their economy had reached a point where the capital inflows exceeded domestic needs of the real economy, so further monetization would have caused incredible inflation. they resorted to sterilization in special accounts among other measures.

i believe there will come a time where China, as well, has to face up to the fiscal burden of running such a surplus on the current peg.

that is an interesting idea of yours re Japanese-Chinese integration. i'm not sure how they'll integrate the workforces to the Japanese' liking -g-.
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