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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (17825)	12/6/2004 9:22:27 PM
From: RealMuLan	Read Replies (2) \| Respond to of 116555

Only Chinese link<g> I think the English source has not picked it up yet. Basically the news said, China's central bank, for the time, admitted publicly that huge amount of hot money has flowed into China. And they are going to take 6 measures to fight them. 1. strictly control the long and medium term foreign debt; 2. let the commercial banks using US$ mark the market; 3. counter-attack the weak US$ by selling US treasury and buy money market (cash); they seems just realized that long bond yield has no much relationships with the US$ policy, so they have to hold the cash in order to force the US gov. to choose bet. either weak $ policy or high yield, not both; 4. control the inflows by raising the US$ deposit interest rate; 5. widen the out flows of US$ by letting the legal assets to go abroad; 6. widen the out flows of US$ by increasing the amount of US$ exchange for people going abroad to study. We have talked about others here except 3rd one. I put the Chinese link here anyway<g> news.hexun.com