Thanks, Mish. this is the best article of the late from Andy Xie.
>> I think the renminbi peg is the pillar that would prevent dollar weakness from turning into a dollar crash. <<
Yeah, that massive hedge fund industry is what China worries about in case he repegs/float RMB.
>> I think it is essentially an attempt to redistribute economic growth from Europe, Japan and emerging markets to the United States. <<
I would assume these emerging markets exclude China? Because it would be awfully difficult to take growth away from China when China pegs RMB to US$<g>
>> The key signal that China has agreed to play, of course, would be a big revaluation of the renminbi, just as the Japanese yen was revalued in the 1980s. When the market talks about 3% or 5% revaluation, it is just baiting China. When China moves a little, everyone will jump on China and ask for more.<<
Hallelujah! That is exactly why China has to stick to his gun, and not to budge<g>
>> I do not think China will play the game, destroying itself to sustain indulgence elsewhere. China is too poor to become another Japan. Instead, the renminbi peg to the dollar could become the anchor for global stability when American politicians play with fire, in my view.<<
This is the smartest comment I read from Andy Xie in a long while<g>. Although the fact is also obvious that China has tried his best to contain the runaway growth rate, and hope to obtain a sustainable growth rate over the next couple of decades. So generally speaking, China is a more responsible player than the US<g>
>> I think the renminbi peg is the pillar that would prevent dollar weakness from turning into a dollar crash. <<
That is some complement!<g> Although I think J6P are too ignorant to appreciate the fact<g>. And they will keep bashing China for manipulating RMB and take the job away from Americans... |
