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

To: GST who wrote (34172)	7/25/2005 3:09:56 PM
From: benwood	Respond to of 116555

The US consumer will roll over when the wink-wink credit era ends.

To: GST who wrote (34172)	7/25/2005 3:37:05 PM
From: Tommaso	Read Replies (3) \| Respond to of 116555

I have not ever been to China and what I read, I think, fails to communicate much at all of what must be going on there. Only fifteen or twenty years ago, however, friends of mine who spent time in China came back with accounts of dirtyness, poverty, and generally low living standards that seemed incapable of being improved. One fellow told me about learning to like "white tea" , i.e. just plain boiling water. I have not read Jim Rogers's travel books, but I guess I should. He is wildly enthusiastic about China's propspects, as I am sure you know, and he is anything but an "armchair" analyst.

To: GST who wrote (34172)	7/26/2005 1:20:30 PM
From: RealMuLan	Read Replies (2) \| Respond to of 116555

[Reality check<g>]--Central bank denies further revaluation of RMB yuan China on Tuesday denied the possibility of further yuan appreciation after it allowed the currency to rise 2 percent in value against the US dollar a couple of days ago. The 2 percent rise of RMB exchange rate against the US dollars means an adjustment made at an initial moment of China's RMB exchange rate reform, but doesn't indicate an initial adjustment of 2 percent which will be followed by further adjustments, a spokesman with the People's Bank of China, the central bank, said on July 26. The reform on RMB exchange rate regime receives wide attention and full understanding from domestic and foreign media as well as related sides, the spokesman said, but there are also some foreign media who create misunderstandings about the contents of the reform and the exchange rate adjustment against US dollars. They even made a wrong judgment by saying the 2 percent revaluation is only an initial adjustment which will "probably raise expectations on further revaluations in the near future". To have a correct understanding of the reform on RMB exchange rate mechanism, the central bank now issues an important statement which contains the following key points: First, the 2 percent revaluation means an adjustment made at an initial moment of the reform, which has been decided on the level of 2 percent, but doesn't mean that the first-step adjustment is 2 percent and that would be followed by further adjustments. Second, the 2 percent margin is decided according to calculations for a reasonable and balanced exchange rate level. Such an adjustment was actually determined considering the size of surplus and the needs in restructuring of China's foreign trade while at the same time taking into account the resilience of the domestic enterprises to absorb the risks. It is basically designed to achieve a balance between commodity and service items. Third, "gradual progress" is a principle that must be followed in the reform. It refers to the reform process but not to exchange rate adjustments. The reform focuses on the mechanism to form the RMB exchange rate, but not on the rise and fall in figures. The spokesman urged media to understand the spirit of the reform correctly and run responsible, objective reports. By People's Daily Online english.people.com.cn