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

To: skinowski who wrote (88096)	10/28/2007 1:05:01 PM
From: GST	Respond to of 110194

<Isn't there a de facto peg between our currencies?> The RMB has appreciated significantly againstthe dollar in the last year or so, and there is no "peg". As a matter of policy the Chinese are not comfortable with the RMB going up faster than about 5% per year although they seeming willing to adjust to a higher rate as their economy strengthens and ours weakens. The US wants to send the dollar down as fast as possible and are begging for the dollar to fall by something more like 10% per year against the RMB -- and would really like the dollar to fall much faster than that but don't expect it. In any event, the RMB is on course to roughly double in the next ten years.