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Politics : Moderate Forum -- Ignore unavailable to you. Want to Upgrade?

To: tsigprofit who wrote (8621)	3/18/2004 7:25:30 AM
From: epicure	Read Replies (1) \| Respond to of 20773

Message 19929760

To: tsigprofit who wrote (8621)	3/18/2004 9:04:16 AM
From: GUSTAVE JAEGER	Respond to of 20773

Told you so....() "Eventually, of course, there will be internal problems", Lee says, "not because Japan and China decide not to keep US dollars, but because in America, another bubble may be created... Sooner or later, excesses will have to be blown off and washed away. That's a different problem. It's not an international collapse." As far as the Chinese and the Japanese are concerned, Senior Minister Lee says, "they have to decide whether they want to keep on selling their exports and keep US dollars, either in US Treasuries or other US assets, or buy properties, shares, or whatever with US dollars.* If they switch over to Euros in a big way, then Americans may have to stop buying from them, and their economy will stall. So, China and Japan have decided for the present that this is not a bad situation. 'I manufacture, use my surplus labour and sell you these goods, value-added. I take your dollars, buy US Treasuries, buy US shares, equity, real property, US technology. It's a useful way of developing my economy.'" [...] yaleglobal.yale.edu As I said, hoarding US T-bonds was merely China's first stage --in the second stage, Chinese capitalists will buy US stock.... (*) Message 19895167 Message 19898796