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

To: Oblomov who wrote (34189)	7/25/2005 6:35:27 PM
From: RealMuLan	Respond to of 116555

Yeah, a good possibility that the price for China's exports will have to increase at about the same percentage of RMB appreciation (and may have to come at a cost of less volume, which is fine since most of people in China already realized that China's economy is way too trade-dependent). 1. Companies cannot hire enough workers at the same low pay; 2. Raw materials and energy cost more (the manufactures can only absorb so much of higher cost of raw materials and energy for so long before transferring it to the consumers); 3. China will soon pass their bankruptcy law, so the state will no longer hold the bags for money-losing business. The last but not the least, Zhou XiaoChuan, the head of BoC suggested raising the price<g> Message 21536705