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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: sea_urchin who wrote (22978)4/17/2005 4:28:29 PM
From: The Wharf  Read Replies (2) of 81384
 
If China does unpeg that would affect US companies who are out sourcing in China. Their profits would have to decrease or production cost decrease to 20-40% to off set the possible appreciation of yuan. That will have a negative affect on the US stock market.
Snow hopes that will have a positive affect on manufacturing here. However our employment rate is low economy in decent shape and presently we have interest rates increasing so I tend to think growth stimulation would be minimal and product price inflation could be the major result for the US.
That could cause another increase in rates. IMHO


The cost of MacDonald's coke and hamburger in China is about half of what it is in US. Labor costs are where the savings are.
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