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Non-Tech : Kirk's Market Thoughts
COHR 139.05-0.2%Nov 17 3:59 PM EST
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Hawkmoon
To: Hawkmoon who wrote (264)12/9/2013 6:31:27 PM
From: Kirk ©1 Recommendation   of 26528
 
Good question.

If I was a CFO trying to stash several tens of billion in China, I'd be tempted to have the Chinese bank I deposit the money at buy US Treasuries to eliminate any currency hedging costs. Or perhaps buy USTs directly via a Chinese or HK broker. In both cases, I'd already be in dollars.

Also, if bringing that money back to the US turned up the velocity of M1/M2, then it would probably more than offset any currency liquidity issues..... many times over.
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