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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 379.91+0.4%4:00 PM EST
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To: TobagoJack who wrote (6208)5/10/2006 2:57:06 AM
From: Maurice Winn  Read Replies (1) of 217685
 
China will buy a LOT of CDMA equipment. That will absorb quite a stack of $billions. They are also buying a LOT of oil and steel and stuff, which can be paid in US$.

I guess the yuan will drop against the US$ [contrary to popular expectation] as pixelation processes enable the government to maintain a healthy spending rate via dilution in an extremely rapidly growing economy [excellent for dilution of currency and profits of control without causing inflation].

It's a heck of a lot easier to simply print some more money to conduct spending than to tax citizens. China can do that. NZ can't without destroying the currency. China can do quite a lot of it and have a gently falling currency vs US$, except that the USA is going lickety split pixelating their own new cash flow to keep up the spending which King George II just loves to do.

So, even though China dilutes their currency flat out, they can enjoy a stable, or even appreciating currency [relative to USD].

It's hilarious that American politicians whine about the yuan being under-valued. They are really going to wail if it actually drops somewhat. Which I'd like to see, just for the fun of it. Given the spendthrift profligacy and currency dilution of the US government, it's surprising that the yuan doesn't appreciate [as far as the politicians are concerned].

Mqurice
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