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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: sea_urchin who wrote (21774)10/28/2004 3:31:57 PM
From: The Wharf  Read Replies (1) of 81050
 
The assumption is the higher cost of borrowing money will slow the economy hence decrease commodity use .

They are shooting themselves in the foot trying to use interest as the with the peg and as our dollar declined there was more cost savings and increased desire on the part of higher currencies to invest in China. She is trying to control her own inflation and she can't this way. It will be interesting to see what happens if she drops the peg.
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