Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: gregor who wrote (6898)	7/20/2005 2:13:11 PM
From: Chip McVickar	Read Replies (3) \| Respond to of 12411

Yuan floating produces two scenarios... It's watertight and floats.... It's not and sinks...? In the latter.... (a statement that China is dead duck financially) #1 -- the dollar would likely strengthen and currency balances go on as usual... #2 -- the dollar strengthens and commodities crash, exposing serious problems within the hedge funds and big banking portfolios which opens a new chapter in world wide currency and debt structures. In the first... #3 -- the dollar would likely strengthen and currency balances go on as usual... #4 -- the dollar falls as the cost of cheap China goods rises, putting pressure on the USA economic recovery. We also have to factor in the retirement of Greenspan and the anointed replacement with new views...? Don't know which of the four scenarios will occur... but one or two should make their presence known within a few months. Euro is not a factor in determining the direction of the dollar... and would fall with the dollar if a negative scenario evolves from the Yuans floating abilities.