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

To: bond_bubble who wrote (48249)	12/27/2005 5:54:08 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

The Chinese Banking system is also basically insolvent. It takes lots of RMB to prop it up. It really is unclear as you suggest but given that about 99% of the people think the RMB would rise, I prefer to take the opposite side. The debate is endless however unless and until they float. By then the answer may in fact be a lot different. Mish

To: bond_bubble who wrote (48249)	12/27/2005 6:25:15 PM
From: GST	Read Replies (1) \| Respond to of 110194

Hi Bond Bubble. The Chinese have a good thing going and the yuan is emerging as a credible long-term world currency. The Chinese middle class will grow over the next decade to outnumber the US middle class and in time China will rise to a place of prominence in all economic aspects. The yaun will not rise too soon -- this would be a problem. But as Chinese amass wealth and as we squander ours, the rise of the yuan will no longer be of central importance -- in other words over coming years the Chinese can afford to capture the full value of the wealth they are creating for themselves.