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


To: westpacific who wrote (54544)9/6/2009 11:04:11 PM
From: TobagoJack  Respond to of 218146
 
just in in-tray, from highly placed and connected individual, of the empire, but with the republic of china, and residing on money rock hk, part of the people's republic of china

So, if the Taiwanese can switch out of USD with a reserve of $325billion and play it agains Euro, YEN and AUS/CAN , why can't the chinese with 5 times that amount also move out. The Taiwanese were major buyers at two Canadian$ corporate bond auctions in Feb according RBC friend. That means they have at least a 8% gain against their currency on that trade, plus a yield of 5%, verse home market 4% or US T bills 3%.. .

Many more nations take those trading positions then I see pressure on US to raise interest rates as a defense fairly quickly......

FROM HSBC: * TW Forex reserve reached USD 325 bn or another historical high, helped by higher investment yield and EURO and JPY strength.


to which i responded,

the issue may be that the prc, unlike the roc, is a big part of the high-capacity / high-capability machinery that recycles dollars in ever increasing amounts, and that the usa is and will continue to need progressively increasing, parabolic and eventually exponential / asymptotic (towards infinity) levels of debt, until it does not, and when it does not, not good