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


To: The Wharf who wrote (22980)4/17/2005 5:00:56 PM
From: sea_urchin  Read Replies (1) | Respond to of 81384
 
Darleen > If China does unpeg that .... will have a negative affect on the US stock market.

It will certainly be inflationary for the US and we know the market doesn't like inflation.

> Snow hopes that will have a positive affect on manufacturing here.

By "unleashing" the proper effect of the USD devaluation which is what one would normally expect.

> I tend to think growth stimulation would be minimal and product price inflation could be the major result for the US.

Could be?

> That could cause another increase in rates.

Yes

> The cost of MacDonald's coke and hamburger in China is about half of what it is in US

In SA, an McDonald's burger costs $1 and 2-litre Coke at the supermarket is $1-25.



To: The Wharf who wrote (22980)4/18/2005 8:23:05 AM
From: The Vet  Read Replies (1) | Respond to of 81384
 
Darleen, another effect would be the reduction of the US GDP. I read somewhere this weekend of a top model bicycle made in China that sells in Shanghi for the equivalent of $250 USD.

The same make and model sells in NY for $1,200. Much of that mark-up is added into the US GDP. In fact on an item like that made in China and imported and sold in the US it adds more to the US GDP than it does to China's.