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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (37218)	7/28/2005 10:12:38 PM
From: regli	Read Replies (1) \| Respond to of 110194

This might very well lead China into buying gold. It can be easily purchased in dollars and just as easily be used in a later exchange against other assets. The downside might be that such an action would likely cause a short term sharp devaluation of the dollar. However, significant China purchases would soon force gold to rise in all currencies taking the pressure of the dollar exchange rate compared to other currencies.

To: ild who wrote (37218)	7/28/2005 11:51:05 PM
From: RealMuLan	Read Replies (1) \| Respond to of 110194

I think KT has said that China is very active in currency market. So they must be busy with changing the US$ they get into other currencies. Why not? After all, there are other "hard" currencies besides US$. I don't understand why you say China is stuck with those US$?