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To: Think4Yourself who wrote (42276)	4/20/2005 7:55:17 PM
From: CommanderCricket	Read Replies (1) \| Respond to of 206176

JQP, What makes you think the RMB would go up if allowed to float? The chinese banks are under capitalized (being polite here) and if given a choice would you hold your money in RMB? Additionally it is very difficult for a foreign company to repatriate profits from China (the company I worked for certainly had a problem with it). I suspect once the RMB is free to float, many companies will sell RMB and get back into their own currencies. Not claiming this would happen but most of what I've read argues for the RMB to rise in value. I don't buy the argument the Chinese economy is going to collapse. Not going to happen. Michael

To: Think4Yourself who wrote (42276)	4/20/2005 9:26:55 PM
From: gregor_us	Read Replies (1) \| Respond to of 206176

If you see in the paper that China is going to float their currency, head for the hills. Well, I think we've been seeing the discussion of it in the newspaper for over a year. IMO, the best analysis reveals that Yuan revaluation is definately not going to happen, would be a disaster for China, and, yes, would without question be head for the hills time for all of us. As it stands already, interest rate hikes by the Fed are already proxy hikes for any country with its currency pegged to the US dollar. Like China. Revaluation (higher) would only mean even tighter monetary conditions for China. They simply cannot handle it, and, they know it. Which is why it's not going to happen. LP