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.

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

To: orkrious who wrote (23275)	12/12/2004 9:03:08 PM
From: Rarebird	Read Replies (1) \| Respond to of 110194

< I agree it's coming, but why?> Japan stopped supporting the US Dollar with Yen sales back in March 2004. Now, it is possible that Japan will be in the position by the end of the first quarter of next year where it can legitimately claim that it cannot help either the US Treasury or the US with its Dollar because Japan itself has once again slid backwards into recession. The Chinese banking system is virtually insolvent. At the end of 2003, outstanding commercial bank loans were 145% of GDP, the highest ratio in the world. Bad debts on the books of these banks stood at 40% or higher, also the highest in the world. These "hollow" banks stand behind China's vast surge forward, fuelling China's industrialization through their massive loans. China is in no rush to see its own Yuan currency any higher than it is against the US Dollar because a higher currency could kill banks so exposed to a sustained outflow of depositors wanting to move their money elsewhere.