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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: MulhollandDrive who wrote (3166)12/11/2003 7:28:27 AM
From: Wyätt Gwyön  Read Replies (1) of 110194
 
the great sucking sound you hear is china buying raw materials

yes, but a lot of those raw materials are going to China to be processed for export. it is not a total black hole.

also, the high concentration of Chinese demand in commodities has not been lost on commodity bears. in fact, this is a primary reason for their bearishness.

raising rates in the US will have no effect on a demand driven price spike in commodities in china

yes it will. to the extent that higher interest rates cause a slowdown in the US and global economies, demand for goods from China is reduced. China is dead without exports.
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