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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.31+0.6%Nov 7 4:00 PM EST
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To: TobagoJack who wrote (65837)8/31/2010 1:33:23 AM
From: energyplay  Read Replies (1) of 217638
 
A higher won and yen would also ease some of the enormous pricing pressure on China's companies, which could make wage increases easier...helping the development of internal market growth.

Also, Chinese purchases of other Asia countries debt, and their subsequent purchase of US and other monetary assets, will also help protect Asia from any European PIGS-like problems.

A repeat of the Thai currency crisis ( 'Bahatulism' ) or the Korean credit crunch would not be welcome at this time. Maybe 5 years from now, when Asian growth gets overheated, but not now.

I am starting to think that the second reason is much stronger - avoiding a nasty crisis is far more important than optimizing some short term currency moves. In a possible double dip world, safety needs to be first.

We might be seeing that rare creature, China - Japan- Korea -ASEAN cooperation. Note 2009 agreement -
en.wikipedia.org
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