Wednesday, October 24, 2007

who's holding up who?

it's been commonly said the weak dollar is hurting the european economies by making chinese products even cheaper.

an interesting question I must ask is whether the yuan is propping up the US currency? given that every dollar can buy more yuan than it should, it adds value to the dollar. if you hold dollars, you're getting more yuan than you should. the next question is what happens to the dollar globally when china revalues. at some point it has to be coming. they need to raise their rates and are overheating terribly.

(one must wonder whether the yuan makes the dollar like buying EMC or CY to profit from VWM or SPWR. there is unlocked value...)

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