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.

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

To: RetiredNow who wrote (108843)	6/22/2010 4:26:02 PM
From: THE ANT	Read Replies (2) \| Respond to of 110194

The developed world cant consume what the Chinese produce now and they could probably double production in the next 5 years if they want.They know the domestic market is their future.Wars have been fought mostly over resources.In the short term resources are limited.They have fought a great economic battle.Medium term the price of natural resources in US $ has no where to go but up.Short term they could go down while deleveraging,fear,adjustment,panic reign

To: RetiredNow who wrote (108843)	6/22/2010 4:33:53 PM
From: Hawkmoon	Respond to of 110194

Last year I wrote about how the leaders in America were essentially fiddling as Rome burned. I don't disagree with the substance of that article. HOWEVER, China is not as stable as many would like to believe. With an export driven economy, permitting the Yuan to appreciate might make commodities cheaper, but it risks social unrest at home as Chinese products (and therefore manufacturing) idles. Chinese workers are not going to be motivated to spend domestically under such circumstances. Maybe depreciate the Yuan to keep pace with wage raises and there might be a logical scenario.. Every other developed country is attempting to depreciate their currency in order to drive their economy, and/or reduce their trade deficit. It's a form of protectionism similar to what occurred in the '30's. What makes people believe the Chinese don't want to play the same game? All they need is an excuse that other nations can accept (or at least are powerless to confront). Hawk