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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (6800)	2/3/2004 8:28:19 AM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

The simple fact of the matter is this: As long as it is in China's and Japan's best interest to keep buying US treasuries, they will continue to do so. Hmmmm This of course begs the question that Gross never bothers to ask. When will that be? morganstanley.com

To: mishedlo who wrote (6800)	2/3/2004 11:47:35 PM
From: ThirdEye	Read Replies (1) \| Respond to of 110194

Mish, nothing happens in isolation in the world economy anymore. The day China "no longer needs US consumers" will be the day their internal markets are far more developed, and the day east Asian markets can buy more of their stuff instead of having to sell it to us. However, as long as the Ren is pegged to the dollar, and as long as there is competitive devaluation in other Asian currencies to keep pace with China, as long as the dollar slides, that day slips just beyond their grasp....not to mention the inconvenience of any number of economic policy shifts or unexpected political events. The faster they run, the behinder they get. Am I missing something here?