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

To: Hawkmoon who wrote (79500)	9/12/2011 1:15:02 AM
From: Maurice Winn	2 Recommendations Read Replies (2) \| Respond to of 217774

I guess so. <I wonder if China will continue it's peg to the USD in the event of a major surge in the US currency? > Totalitarian people like control and especially they like control of money. But they might decide to print themselves big loads of yuan to enjoy shopping expeditions in Beijing and Shanghai. That would mean they could officially devalue the yuan peg in steps. But they'll have to print a LOT of yuan because Big Ben and his helicopter fleets can chuck bales of bucks out by the $trillion. China can basically not bother with taxes and just dilute the yuan for several years as part of the global currency race to the bottom. In the 1970s and early 1980s, NZ's government used to do just that - devalue the currency in big lumps of 10% at a time, once a year or so. I think the biggest lump was 15%. I'll ask Google if it remembers. Here is the total, from US$1.22 all the way down to US44c in 14 years: <In 1971 the US devalued its dollar relative to gold, leading New Zealand on 23 December to peg its dollar at US$1.216 with a 4.5% fluctuation range, keeping the same gold value. From 9 July 1973 to 4 March 1985 the dollar's value was determined from a trade-weighted basket of currencies. The NZ$ was floated on 4 March 1985 at the initial rate of US$0.4444. > en.wikipedia.org Mqurice