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

To: russwinter who wrote (9026)	3/1/2004 8:57:59 AM
From: TobagoJack	Respond to of 110194

Hi Russ, <<So you are saying the inflation policy of the Chinese govt will be to stand by and watch whole industries collapse from energy, bottlenecks and input goods starvation, just so they can maintain a currency peg that allows their exporters to sell at a loss?>> ... not at all. What I am saying is that there will likely be no re-peg, because all the issues can be resolved without a re-peg and thus without the dangers of a re-peg. The currency has its natural level, and as China's trade is in fact in balance, the currency is more or less at the right rate. The USD re-peg requirement from USA is not an issue for China, but an issue for the US. The solution for the US is simple ... print, as it has been doing. Everybody else? They must take care of their own currencies, in line with their own social requirements, and so Japan prints, and Europe starts to print, ... and, and , and ... I do not for a moment believe I am saying anything that is new to this world. It is just the way things are. J