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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 457.82+1.3%Jan 23 4:00 PM EST
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To: THE ANT who wrote (63184)4/30/2010 12:37:12 PM
From: elmatador  Read Replies (1) of 219713
 
In 2002 - I was in Thailand then- and the US was needing 2Bn dollar a day injection. Chinese were buying.

The Dollar should have been devalued. The Chinese saw that USD they were buying was not losing value.
That belief came out of seeing the upheaval of the bubble bursting. The 911 aftermath, the ENRON, WCOM and all that.

Even with all that the USD was there stable. Not even a war in Iraq moved the USD.
The Chinese established the belief that that thing is iron clad.
A belief as strong as MQ Forrestal Aircraft carrier protected currency. Out came AG –MQ’s KBE and King George- and proved the Chinese correct.
The US was studying the Chinese as much as the Chinese were studying the US: And both thinking they were cleverer than the other.

The US knew that once they had acquired that pile of reserves they would be dependent on the USD. Thus would not topple it.
The Chinese today discovered the game they entered. Are seeing the results. And are pressed to revalue but do not.
Why?
Revaluing means the US won the Chinese lost.
Please leave aside all outcomes of a revaluation and think.
Think of the many Chinese finance officials who would lose face! Jobs and even perhaps heads!
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