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

To: 2MAR$ who wrote (85087)	12/26/2011 7:55:57 PM
From: TobagoJack	Respond to of 217619

hello 2mars$, report: a few macro notes - china and japan have reached agreement to initiate use of respective currencies in bilateral trade and in time should skip the dollar entirely. i am guessing that japan buying china bonds and china buying japan bonds can act to keep the interest rate low enough in both territories for a long time as they swap capacities for capabilities. as the rmb becomes more used for purchasing gold, silver, aluminum to zinc, oil, and in effect, companies, and other goodies from far away lands, all good i also guess a yen for china is a yen less for usa, helping team usa to get on own feet / to own resources. also, i am guessing that should japan default on china, china would default on japan. good planning. - in the mean time china seems to be successfully pushing through 13-20+% wage increases even as currency had gained on trade-weighted basis, in keeping with good-and-better wage-cost-spiral circle-of-good, to continue leveling the playing field of production-and-consumption, savings-n-investment, cost-and-revenue, even as cost of living in truth has dropped given that far away places do not need as much resources as before and cost of private housing is moderating, all the while social housing construction is ramping up to allow more to participate for less, and more get to build for more, in order to buy for less. wonderful continental economies are great when revved up. there are those figuring that china would somehow lose manufacturing edge on low cost export but they are missing the point that china does not exist to export just as the ming dynasty did not cater to export. any ways, the west wished for 'free' trade. they got it ;0) - at the same time there are great constructs being put together to accelerate the purchase of usa and european corporations, in effect using the rmb by way of matching the printing speed of usd and euro, absorb the pain that is the cost and buy buy buy i note that a dollar for usa company is a dollar less for usa bonds, and as cost of bonds drop on consequential interest rate increase, the equity becomes cheaper. globalization seems to be working as it should and as expected, equalization of east n west, north n south. all good for securing peace. 2012 year of the dragon should be interesting.