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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Hawkmoon who wrote (9934)10/8/2006 10:32:02 PM
From: TobagoJack  Respond to of 218621
 
<<That's interesting.. Expectations of inflation in advance of an economic deflationary implosion? Or will Chinese flee from Yuan to gold and dollars on the day of reckoning?>>

No, neither. The pricing was always thus, per supply and demand, on top of linited import and closed capital account.

We must not forget that the Chinese invented (i) paper, (ii) printing, and (iii) paper money, and so ought to know the value of gold.

<<... isn't the point of the article that China foreign currency reserves are approaching 1/2 their annual GDP? There's so much money and so few quality places to invest it that it's spurring speculative excess.>>

:0) Do you know of any nation able to 'invest' a trillion dollars on short order? assuming war waging is not to be equated with investment.

In any case, where is the excess? Miles of highway per territory is less than Mexico, and average home space at 50 square feet per person. Where is the excess?

<<Mercantilism.. It's nothing new.. Japan did the same thing and look where they wound up>>

... rich, and after 'collapse', still rich.

<<I don't know how the world, let alone the Chinese people, can truly have confidence in their financial system>>

... I am pretty relaxed about the Chinese banking system. Once the state burdens are crossed out against state assets, the numbers are trivial to all except USA media, and miniscule compared to ... well, you know, the financial 'assets' that supposedly generates so much % of NYSE corporate 'profits'.

Chugs, J