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

To: Cogito Ergo Sum who wrote (66719)	10/1/2010 7:06:12 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 219741

Not in Chinese interest to collapse the dollar.. with a stash as big as theirs... Couple of different views on that. Since they are effectively still pegging against the dollar, it makes their exports even more competitive than Japan, Korea, or Europe. Thus, to increase the US dependence upon their products, having the dollar decline would work to their advantage. Also, having the dollar declines asserts their influence and economic muscle in Asia, to go along with their military intimidation. The value of their US holdings are probably not overly important at this moment, especially since the actual percentage of decline, in Yuan valuation, is not that much. Also, recently there was speculation that the Chinese were pressuring the Yen upward to force a BOJ intervention. That would mean Japan would have to buy more US Treasuries, and the seller of those bonds very well could be the Chinese. Hawk