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

To: Broken_Clock who wrote (101286)	2/14/2009 12:14:34 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 110194

why buy forward contracts when you can buy companies? I think you're missing the entire point. If you think the Fed and ECB fear gold, then why would the Chinese Central Bankers be any different? They have no love of for gold or platinum, except as a commodity to use in their electronic products. And more to the point, the Chinese economy depends HEAVILY upon exports for economic growth. Thus, they have as much interest in preserving the ratio between the dollar and yuan as we do. Besides, there's simply no way they could move even a fraction of that capital to another asset class without the market getting wind of it. Hawk