Even though it is only 2% rise, the effect on US inflation can be huge.
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YUAN Revaluation = Bullish!!
- Thread starter areyoukidding?
- Start date
Even though it is only 2% rise, the effect on US inflation can be huge.
Quote from dougcs:
IMO:
Higher oil prices as the yuan is worth more, ie oil is cheaper to China so they can afford more or maybe if its price in dollars holds it will be less costly to China;
Higher US interest rates, including mortgages, as China buys less US bonds and this should slow down US economy;
Uptick in US inflation as Chinease imports get more expensive and oil goes up also;
No increase in US jobs and maybe a decrease as higher interest rates slow economic activity. Jobs shift a little from China to other low cost areas, maybe Africa/India?
Bigger trade gap as US keeps importing from China (short term, where else will the goods come from?)
DS
seems reasonable at first reading.
I guess we'll all see soon enough
Quote from The Kin:
People like to make up drama. We might see a rise in inflation but the yield curve is predicting deflation. You can't have both! Truth is, no one really knows what's going on right now.
But things ARE looking like there is only a finite amount of time before things DO become clear. Trade in & out and keep it liquid, kids.
IMHO might be a nice optty to buy bonds for longer term purposes if you missed the last run up.
Quote from drsteph:
But things ARE looking like there is only a finite amount of time before things DO become clear. Trade in & out and keep it liquid, kids.
IMHO might be a nice optty to buy bonds for longer term purposes if you missed the last run up.
Buy Bonds, yeah thats the ticket. How about you buy them. Let us know how it worked out.
China Deals Fall, China's Currency Rises
A day after the demise of two deals by Chinese companies to take over American companies, China announced it would allow its currency to appreciateâa move the Bush Administration had hounded China to take.
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Tack on the comments that China about using force against the Americans in regard to Taiwan and this currency float seemed more done out of revenge. Anymore anti-china talk and I'm betting they start selling US debt. There was no need to float that currency.
A day after the demise of two deals by Chinese companies to take over American companies, China announced it would allow its currency to appreciateâa move the Bush Administration had hounded China to take.
--------------
Tack on the comments that China about using force against the Americans in regard to Taiwan and this currency float seemed more done out of revenge. Anymore anti-china talk and I'm betting they start selling US debt. There was no need to float that currency.