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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: TobagoJack who wrote (73479)4/23/2011 8:51:54 AM
From: KyrosL  Read Replies (3) of 217771
 
Hi TJ. So, China prefers wage price inflation to currency appreciation, because wage price inflation redistributes wealth to the peasants, since inflation is primarily food. It's a good theory, provided it doesn't deteriorate into a wage price spiral.

In any case, the result is the same as a currency appreciation: higher prices of imported goods in the US, and gradual improvement of the US trade balance.

In the US the political circus is revving up. Clowns, complete with wigs, rule. Trump is the leading candidate among the Republican base. He wants to impose a 25% duty on ALL Chinese imports immediately. The Republican base loves it. Its financiers are somewhat alarmed. Sounds worse than Schumer, the darling of the Democratic base. So now both bases are in agreement on at least one issue. Who would have thought ...
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