SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Dutch Central Bank Sale Announcement Imminent?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: The Wharf who wrote (21775)10/28/2004 4:21:04 PM
From: sea_urchin  Read Replies (3) of 81046
 
Darleen > The assumption is the higher cost of borrowing money will slow the economy hence decrease commodity use

Yes, growth will "cool" from 10% to 9%, or something like that. But why I am confused is because if the Chinese economy contracts, they will have less to invest in US debt instruments. Accordingly, one would expect the USD to fall -- but it didn't happen. So something is wrong somewhere.

Indeed, the cheaper commodities are, the better it is for the Chinese economy. Next week, they can threaten to raise interest rates a bit more and commodity prices can go down the tubes -- and Chinese growth rates can go up again! So China can control the prices of commodities, which are produced elsewhere, simply by playing around with its own interest rates. I wonder who taught them that trick? Must have been AG.

To me, the whole thing is pure BS.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News