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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 (31569)	5/4/2005 12:24:28 AM
From: Taikun	Respond to of 110194

Ramsey, <Ironically, it may be the Chinese who has more interest in protecting our economy than our own political leaders. > This is what makes China saying they don't want to act as if they're pandering to Western interests with the repeg. I wonder if it might be something different. What if, instead, it is a case of 'be careful what you wish for'. Some American politicians are already acknowledging that the Yuan revaluation will probably not be able to fix the trade deficit, but as much as they may want to backtrack, the request has been made. The problem is that we may get a spike in the RMB and then the RMB longs cover and then what happens? On seeing the RMB top and start to fall maybe Chinese investors start sending money offshore, joining the flight of the foreign spec longs. Then what happens? I think the best we can hope for is dialogue between China and the US and the most telling thing I got from Snow's comments was that we don't have a hope of getting the Chinese to tell the Americans what they'll do. So now, this highly leveraged financial market in the US has this black box in the middle of the trading floor. Is it a white dove or a suitcase nuke? It's alright, we'll send in someone who knows about risk to open it. We'll send in the hedge funds. LOL D