Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: Peter Dierks who wrote (22488)	9/6/2007 11:13:43 AM
From: TimF	Respond to of 71588

Since they would know their next several steps they could manipulate the market for quite a while and actually might profit from the changing value of the dollar. They might but its pretty hard to corner a market like that unless you control the source. Witness the Hunts attempt to corner the world's silver market. You can make the commodity or currency go up by buying, and get a large paper profit, but its hard to realize the profit by selling the item without losing it or even taking a net loss. Of course China's accumulation of dollars isn't mainly a speculative activity, they get them because they sell things to us. The trade enriches both countries, but if you try to game it or use it as a weapon its pretty hard to not hurt yourself. Which is exactly the reason that the Chinese keep the value of their currency down. The rate of increase of wealth is important, if people get richer too fast then they will be less dependent on the nanny state. Getting richer "too fast" can effect stability, but on the other hand the people have come to expect "getting richer", and if that stops or reverses it will also destabilize things. China's government is trying to balance on the line, which is one more reason not to rock the boat to hide.