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

To: TobagoJack who wrote (68061)	11/12/2010 6:34:00 AM
From: elmatador	Read Replies (2) \| Respond to of 217688

China imports iron ore for $100. Importer buys $ for RMB680 in China CB. Say BRL is 2.5/$. Vale exchanges those $100 in Brazil CB for BRL250 Us print more dollars. Drive up BRL, say BRL to 2.0/$. Next month we repeat the operation again. China imports iron ore for $100. Importer buys $100 for RMB680 in China CB. Say BRL is 2.0/$. Vale exchanges those $100 in Brazil CB for BRL200. Vale is getting less BRL but China is getting same amount of iron ore. Vale must increasing the price of its Iron ore to get more $ to receive its BRL250. Look carefully, there are more $ in circulation but the amount of goods are still the same.