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To: BubbaFred who wrote (42510)	12/5/2003 9:08:50 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hello BubbaFred, <<Does RMB's peg to U$D provides support and stability to U$D?>> ... I think it can be argued that way. <<... but how long can it stay that way?>> ... forever, according to the thinking in the US not so very long ago, encouraging other countries to not only peg to the USD but to in fact simply dollarize ;0) <<Until it is at such disadvantage for one of them, but what factors will determine the symbiotic relationship could be disastrous?>> ... unemployment, inflation, real economic growth, etc <<I don't see such disparity for another 5 years, at least>> ... ooooh, that stings, via equalization of cost, revenue, profit, wealth ... ouch ... but that is also the consequence of a globe straddling empire. Chugs, Jay

To: BubbaFred who wrote (42510)	12/5/2003 10:00:00 AM
From: Seeker of Truth	Respond to of 74559

In fact Japan and China could maintain the value of US bonds indefinitely were it not for the realism of other parties who have no clear vested interest in maintaining that value. Such as Europeans,for example. Indeed so many US bonds are being printed that the US buyers are running out of means to buy them, low paying as they are. The very short term solution is to raise the interest rate on the bonds.This however increases the debt, necessitating the sale of yet more bonds. In short the circle of China,Japan and the US. treasury does not determine everything for ever and ever.