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

To: Jim Willie CB who wrote (7631)	2/10/2004 11:39:54 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

do you believe China and Japan and Taiwan and Korea and Singapore will just trade finished goods for bond paper forever, all the way up the US Econ Liquidity Trap rectum ??? I have already answered this question with a big no! That said, I think they will keep doing it as long as it meets their needs. Right now, it does. They are booming. Building factories, houses, etc etc etc. They did not have the money to build. Where are they getting it from? From the US! duh! They supply us with cheap goods and they get US$ to buy oil and copper and steel and whatever. Why would they want to stop this arrangement? Perhaps when they are self sustaining, and every last US job possible has moved over there, then they will stop. That is not this year or next year IMO. 2006 perhaps? As long as China is benefitting from this arrangement, and I think they are doing wonderful, then China will keep doing what it is doing, and Japan (bitching and moaning all the way), will keep buying treasuries and $ to keep up with China. Finally, I believe China wants to drive Taiwan chip companies under. That process is just starting. Wait till they drop massive quantities of chips on the market. Watch what happens to already piss poor chip margins. Lots and lots of reasons for China to keep going with this. FOR NOW! ggg And given what I stated, for the foreseeable future as well. Mish