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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (64182)	5/24/2005 1:49:56 AM
From: Maurice Winn	Respond to of 74559

What China could do, just for fun, is pixelate another $1 trillion worth of yuan, enter the foreign exchange markets, and buy roads, railways, power stations, airports, aircraft, telecommunications networks, medical systems. With that many new yuan sloshing around the markets, I think the value of the yuan would go DOWN, not up. I think the USA couldn't whine if the markets are sending the yuan down. Meanwhile, China would get a lot of really good stuff supplied by USA and other companies. If the yuan still didn't go down much, then China could pixelate ANOTHER $1 trillion of yuan. At some stage, people would figure out that the yuan is NOT undervalued. The huge speculation on the yuan going UP, would turn to a rout, with a sucker punch from the pixelation process scoring a bullseye on the speculators who would retreat from China in disarray, leaving huge profits for China and vast infrastructure development underway. Then China could deregulate the exchange markets and leave currency traders to establish the value. People would realize that the yuan is now OVERvalued, not undervalued. Mqurice