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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: XoFruitCake who wrote (40667)	3/23/2005 6:18:55 PM
From: Taikun	Read Replies (1) \| Respond to of 206223

<I think you lost me on why RMB will fall if it can float freely> Not will. I'm not predicting here. I'm saying that everyone assumes RMB will rise if it is allowed to be exchanged freely. There is also a decent chance it will fall. The pent up demand of Chinese who want to get money out of China is, I hear, huge. Do you think Chinese want all of their money in RMB? No, they want to diversify. Plus, they want to buy things overseas that are cheaper than in China. Gold, for one. There are things they can buy outside China cheaper, and those things are-yes-still denominated in USD (for the forseeable future). Some Americans think the RMB is just about the RMB-USD exchange rate, that it is solely for maintaining the export machine. I'm not an expert, but what I hear is other forces are at work. My point was not to make a prediction, my point was to challenge a huge assumption people are making, and there are some leading economists who feel the same. Last night the Senior Economist of UBS China was on Bloomberg saying the same thing: if completely deregulated he thought the RMB would fall. He is not the only one, there are others.