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


To: Square_Dealings who wrote (7187)2/7/2004 6:54:14 AM
From: Haim R. Branisteanu  Respond to of 110194
 
paying with worthless paper for worthless paper is a zero sum game.

Japan is competitively devaluing their currency as are other SE Asia countries who buy US treasuries and agency debt.

Those not participating in the debasing of their currency have a more difficult employment situation.

Raising interest rates or stop printing worthless bank notes is as easy as reversing the same process



To: Square_Dealings who wrote (7187)2/7/2004 8:37:01 AM
From: re3  Read Replies (2) | Respond to of 110194
 
<<<Trade with the U.S. is not profitable since no one gets paid back.

what other game can be played (at least for now) ?

China has to keep its people working, don't they ?



To: Square_Dealings who wrote (7187)2/7/2004 10:20:15 AM
From: mishedlo  Respond to of 110194
 
another option (and what i expect from the G-7) is that the Yuan un-peg from the dollar.

You cant be serious.
China will do what China wants when China wants it. How many times do they have to say that before anyone listens?

As for China being flooded with US$... Well they know what to do with them, buying copper and oil and soybeans

M