Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: GUSTAVE JAEGER who wrote (21805)	11/1/2004 11:06:17 AM
From: The Wharf	Respond to of 81094

It is my belief China sits in a better position than Japan did. If enormous populous has a disadvantage it also has an advantage which is that of the size of consumer market place. If one is a world trader it means little if your products are cost competitive within your borders. Then you are not totally reliant upon export of products to sustain your economy. That is why we US need not be concerned with trade imbalance for if other areas are producing within the economy it means nothing. One area of the economy off sets the other. Japan was far to reliant on export and her bubble was very large her populous small. Surplus currency inflated her costs. Her reliance on world export was just too vast. Thought i do not feel that China's present position of peg to will enable her to circumvent a internal implosion. I do feel if she moved towards the creation of her currency as a strong internal currency she would really be a nation the world would see that produces corporations to contend with. Investment opportunity future growth all lie on the ability of a currency to create value. Cost increase cannot be controlled easily as over exuberance tends to come with new growth but with careful control of dollars in print markets will adjust themselves on a base of supply and demand. By keeping the fiat figures down you decrease the possibility of interest rates rising sky high as well as dirt low. If the supply is not there you cannot have inflation but you will have a stronger currency value. Right now with all the US dollars held and not wanting to be held the pressure is enormous on all currency. So the problem of no peg is free market Yuan goes nuts on offering the other problem is China will not be able to control her inflation. I think i better stop thinking as the more I think the more uncomfortable it is becoming for me as I see, the possibility of a US dollar drop subsequent run for the Euro and each and every escape hatch that seems to offer a solution. Whoops is self explanatory. . So is China as she is tied by peg. Or seeing as I and China chief economist do not converse the Noranda purchase could mean she is in preparation mode.