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

To: russwinter who wrote (108824)	6/21/2010 8:29:00 PM
From: arun gera	Respond to of 110194

>The issue clearly should be: will commodity and input prices rise fast than the RMB? If so, this nickel and dime revaluation will quickly choke off whatever tiny profits Chinese exporters have,> The politically connected will survive and grow bigger... The winners will employ the employees of smaller ones. And Chinese companies will enjoy economies of scale that will give them advantage in the world markets, unless they become too bureaucratic and become their own enemy. -Arun

To: russwinter who wrote (108824)	6/21/2010 10:32:04 PM
From: Hawkmoon	1 Recommendation Read Replies (1) \| Respond to of 110194

If so, this nickel and dime revaluation will quickly choke off whatever tiny profits Chinese exporters have, Yep.. and all of those worker strikes in demand of pay raise also reduces the competitive value of Chinese goods. So who's to say that this "flexibility" with the Yuan/USD peg suggest the Yuan will rise? It could mean the Chinese are entering the same currency war as we're currently seeing between the Euro and USD. China now will be able to assert their own devaluation policies to preserve their favorable export bias. Hawk