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

To: UncleBigs who wrote (56588)	3/23/2006 1:12:47 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

I never really said I did not want a floating RMB (at least I do not think I ever said that), but... I have said now is not the time. Right now I am not sure if the Chinese economy or our economy could take it. It might cause a mad influx or a mad outflux of capital. Personally I think the latter. There is a lot of hot money sitting in China and a mad exit after quick revisions up could be destabalizing to say the least. Worse yet is if nothing happened an all thst money just left. I think as does Hienz that there is every chance the RMB could implode not explode if China floated right now. Others here no doubt think it would skyrocket. Any extreme move either way could cause a lot of damage. For NOW, China's approach is likely the correct policy. In due time China will and should float, and we will probably not like the result when they do. Part of me thinks that US bankers are pressuring China to float now because they think it will cause China to blow up and they are hoping to pick up the pieces. Mish