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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 386.47

-0.2%

Dec 5 4:00 PM EST

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To: Cogito Ergo Sum who wrote (77397)	8/8/2011 3:42:22 AM
From: Hawkmoon	1 Recommendation Read Replies (2) of 218195

US is devaluing the USD and PO'd that China is maintaining the peg.. don't buy Chinese goods.. The same could be said for the Chinese not buying Amerian "goods" in the form of US treasury debt. In fact, I would rather they buy ACTUAL US goods. And while I contend the US deliberately devalued the USD in a bid to prevent a collapse of the Euro, the Chinese followed suit and devalued their currency as well by pegging to the US dollar. They arbitrarily set the value of the Yuan each and every day, while markets dictate the price of the USD based upon the actions of our Fed and Treasury. The way that trade imbalances are resolved is for the currency of the exporting nation to appreciate based upon it's surpluses, while the currency of the debtor/deficit nation decreases.. until the trade imbalance is resolved. That's not happening now.. Export to beggar thy neighbor and then complain about the fact that the target market is now in debt because they bought those goods? Really now,. No.. China wants to be repaid for their exhuberant lending and "manufacturer financing" just like the TBTF banks all want their sub-prime borrowers to repay the full balance of those loans. They will be repaid, but it will likely be in cheaper USDs, as the US economy struggles to re-balance it's trade and currency deficits. Hawk

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