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

To: Ramsey Su who wrote (31551)	5/2/2005 12:23:27 AM
From: regli	Respond to of 110194

Excellent article. Thanks.

To: Ramsey Su who wrote (31551)	5/2/2005 4:21:33 AM
From: Taikun	Read Replies (2) \| Respond to of 110194

Ramsey, I basically agree. Instead of tariffs, quotas would be more powerful, but there is nothing in it for the politicians, so they choose tariffs. D

To: Ramsey Su who wrote (31551)	5/2/2005 9:22:49 AM
From: SliderOnTheBlack	Respond to of 110194

re: China Daily Article - RMB:USD Re-Peg Debate...... chinadaily.com.cn Good Article. Correct conclusion, but imho; wrong context. I agree with it's conclusion - that China and it's RMB peg to the USD are not the (primary) "CAUSE" for our Trade Deficit; as the "0" savings rate Debt & Credit Junkie US Consumer, along with the "Pusher-man" who supplied their low cost debt & creditcaine fix - Mr. Greenjeans; certainly must shoulder the responsibility for the bulk of our own monetary transgressions. However; that is not the point. The point is that the US views the Re-Peg as part of the "CURE" for our Trade Deficit...which unfortunately; looks to be ever growing with no end in sight. There is also mounting political pressure over Fair Trade & Black Market Copyright infringements etc - re: channelnewsasia.com The reason US Politicians are in "such a hurry to push China into revaluing the RMB" ...is they believe the Twin Deficits are about to spiral out of control...and strong arming China (see below) to Re-Value the RMB is most certainly viewed by the US as part of the "CURE" to the problem and they also gain Political Capital (read campaign contributions) from the various Trade Groups. Have no doubt that the US is "strong-arming" China - re: the verbage of the "China Currency MANIPULATION Bill": google.com When they re-peg is speculation...all one can do, is to position accordlingly in advance upon whatever expectation one has. How they re-peg...whether to a basket, or merely re-peg to the USD, is open for debate...but, imho; there is no doubt they will be forced to Re-Peg and will. RMB Re-Peg will increase buying power of growing Chinese Consumer base...good for China & good for the Global Economy...and imo, is inevitable - when, not if. PS: ....there is also a Saudi/Oil "sweetener" component to all of this...but, this is probably not the place for that discussion.