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


To: The Wharf who wrote (22982)4/17/2005 8:54:14 PM
From: sea_urchin  Read Replies (2) | Respond to of 81403
 
Darleen > I tend to think growth stimulation would be minimal and product price inflation could be the major result for the US.

Structurally, I don't think the US is ready to be a major export nation. In fact, before that happens there would have to be considerable investment in the manufacturing sector.

> Every country that does business in China will find an increase in cost when the peg is removed.

That's true, and everyone will start exporting again. More headaches for the US.

> As I am nattering I wonder if this all means that China Stocks are the best place to be?

Here are some Chinese indices. At the moment they are possibly the weakest in the world so you can decide whether they are a buy or whether the bear will continue?

stockcharts.com[l,a]dalaynay[de][pd200,2][ilb14!la12,26,9]

stockcharts.com[l,a]dalaynay[de][pd200,2][ilb14!la12,26,9]

stockcharts.com[l,a]dalaynay[de][pd200,2][ilb14!la12,26,9]

stockcharts.com[l,a]dalaynay[de][pd200,2][ilb14!la12,26,9]

> The real estate bubble could theoretically continue until China drops the peg.

That makes sense.

> it seems possible that the bond market could crash the stock market dive and interest rates rise?

That's a nightmare scenario. Meanwhile, the bond market is rising, interest rates are falling and although the stockmarket is falling my "thumbsuck" is that the Dow could fall to maybe 980 ie to the lower Bollinger Band in this chart. And it's nearly there now.

stockcharts.com[l,a]dalaynay[de][pd200,2][ilb14!la12,26,9]

> Heavens is [if] the Yuan was valued on a big Mac we would be in one large mess as the the US lost 3/4 of its value in one bite.

That's why I can't see US exports taking off big time if the yuan floats. But whatever happens the outlook for Joe SixPack isn't too hot. He may get a job but even if he does he won't be able to afford what he had when he was on the dole!