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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (34074)	7/23/2005 12:26:56 AM
From: RealMuLan	Read Replies (2) \| Respond to of 116555

>>The US$ also depends on the pound and the Euro.<< Yeah, looks like China did a right thing to keep most of their reserve in US$<g> >>The pound totally sucks right now.<< Euro is not much better, is it? >>What happens to the YEN when China takes manufacturing away from Japan?<< Japan will keep the core manufacturing in their own country, only move some low value chains to China. What really could happen, depending on what Japan is going to do in East China Sea, is that China may cut down the imports from Japan. That will put Japan back to deflation, if not recession. Japan's exports to China already reduced plenty in April due to the boycotting Japan product. >>A 10% drop just takes the US$ back where it was several months ago. There is a decent chance the US dollar has bottomed IMO.<< Hope you are right<g> because then China will not lose too much value in their $ reserve.