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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: hui zhou who wrote (3740)	11/23/2004 8:49:45 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

>>If Americans live in Europe and depending on social security check, they are in trouble. << Come on, no Americans depending on social security checks could afford to live in Europe. The basic needs---housing and foods are much more expensive there compared to the US. It makes sense that why both China and the US do not care much to devalue their own currencies<g>. For the US, most of those who are affected by lower $ value are the rich or the high-income business people, while for China, almost all the people who can afford to go abroad on their own have "unique" way to obtain their money, a lot of them, so they do not mind either<g> >>I think China central bank will graduate diversified the investment from the US Treasure notes holding<< They have been doing that since last year, and accelerated since May. Now I think no more than 65% of $515 billion of China's foreign reserve are in US$. On the other hand, China has to hold plenty of US$ because a lot of those $515 billion are there for betting RMB appreciation. Once they get what they want, they will leave. That is another reason China cannot revalue now. After all, RMB is not hard currency.