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To: 4figureau who wrote (3079)1/31/2003 10:41:16 AM
From: Jim Willie CB  Read Replies (3) | Respond to of 5423
 
Chinese Yuan policy is tantamount to predatory pricing
but no intl rules or laws governing such behavior
one could also make a case for slave labor within a semi-free market economy
strange situation, only to turn more volatile
this will eventually carry over into geopolitical landscape

the extreme irony here is that as soon as the Yuan is revalued upward, all the Asians will also revalue upward versus the USDollar
they are mainly concerned with their currency versus Yuan, not dollar
they are all being supremely threatened by China now
just check Japan and Korea and Taiwan

then you will see import price inflation on a host of electronic and other products from Asia into the USA
it will spark a considerable price inflation movement
which will then have repercussions in the longbond TNote yield
which will have consequences to mortgage rates
which will have effects on recession and job losses

WHICH WILL SEND THE USDOLLAR INTO A FREEFALL !!!
COMING BY 2004

our Chinese pressures will eventually kill the dollar
within 6-8 months following Yuan revaluation upward, you will see the death of the Current Dollar
it will be resurrected as a gold-backed dollar

but in the meantime, US Leaders have no idea what hell they hath wrought when they urge depegged Yuan !!!

/ jim