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

To: Crimson Ghost who wrote (19264)	10/1/2004 2:33:44 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 110194

FH, you are right. It is an unmitigated disaster.

To: Crimson Ghost who wrote (19264)	10/1/2004 7:25:29 PM
From: SeaViewer	Read Replies (1) \| Respond to of 110194

Last year a lot of trading houses sent dollar to China preparing for a yuan revaluation. The Chinese central bank had to limit the amount of money foreign financial institutions could transfer to China. The current short-term deposit rate in China is 1%. As US rates goes up, those institutions could exit China which is favored by Chinese central bank, or contituing getting 1% interest. China won't revaluate its currency until after the hot money left.