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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST

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To: Haim R. Branisteanu who wrote (41811)10/26/2008 11:15:11 AM
From: KyrosL  Read Replies (2) of 217789
 
An obvious way for China and Japan to diversify out of dollars is to start buying some strong EM sovereign bonds, particularly the ones of countries they have strong trade ties with like Brazil, South Korea, etc. They will get real bargains since both the currencies and the bond spreads are very attractive.

Plus, it will be seen as helping ease the world financial crisis rather than buying bargains, and even the US won't object. Why aren't they doing it?
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