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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 (9047)	3/1/2004 1:11:12 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

It's sort of looking from all indications that the Chinese will be the first (of anybody) with an inflation fight of sorts? It can only be higher interest rates and/or a currency re-peg, (turning off electricity voluntarily ain't it). That will leave the US and Japan as the bag holders coming out of the gates in terms of securing key goods like energy, metals and food. Why does it have to be a re-peg? I think China can just put interest rates at 6% or whatever, and tighten money supply as well, and accomplish the same thing. The idea is to keep the US consumer happy while slowing the rate of assent of the China economy. I fail to see how a RMB float is required to do that. Even IF it is required, I think they will go that route last. No repeg this year IMO. Look at treasuries today. No concern whatsoever. Next move is lower, possibly way lower, if jobs suck on Friday. Mish