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

To: mishedlo who wrote (48251)	12/27/2005 8:03:18 PM
From: GST	Read Replies (1) \| Respond to of 110194

The Chinese banking system is indeed not up to the task of servicing a 21st century economy -- but look to China to get this cleaned up as part of its global market strategy. China has ample resources to fix these and any related issues. Western financial institutions are slobbering all over themselves to get into the market -- and bit by bit they will be in and in big time. If you are counting on the Chinese banking system to hold back China then you are indeed getting desperate. China has mountains of issues and problems but you seem to know very little about what is actually going on in China nor do you seem to have a handle on their prospects, which are one hell of a lot better than our own in terms of growth and expanded wealth. China will have to work hard to slow the rise of the yuan, and of course this is a rather funny state of affairs as it simply slows the rate at which their wealth is validated. American politicians beg for China to make us poor -- how odd don't you think?

To: mishedlo who wrote (48251)	12/27/2005 8:27:12 PM
From: RealMuLan	Respond to of 110194

>>The Chinese Banking system is also basically insolvent.<< There is a Huge difference bet. Chinese banking system insolvency and the banking system insolvency in most of other developing countries. Chinese banking system owes money to their own people while many banks in other developing countries owe money to foreigners. Yes, that is a Huge difference and a foundamental dif.. That means Chinese can solve their own problem. Not to mention the huge foreign reserve of China now has made China become a NET creditor, not a net debtor like the US. That although not necessarily makes RMB appreciates, because China needs to have their own real industries, the industries with their own IP right, and real profitable industries. NOT just a low-end world sweatshop like it is now. And this is why RMB could not become much stronger than what it is now. Chinese industries is simply NOT competitive enough comparing to those in the developed countries to support a strong Yuan.