# Decode this...



## money tree (11 May 2006)

03:06ET CHINA SAYS WILL MAINTAIN STABLE EXCHANGE RATE AT SUITABLE, BALANCED LEVEL  » RTR 

my interpretation:

MAINTAIN (do nothing) 
STABLE (do nothing) 
EXCHANGE RATE AT 
SUITABLE (best for china) 
BALANCED (get bent yanks), 
LEVEL  » RTR


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## Bobby (11 May 2006)

money tree said:
			
		

> 03:06ET CHINA SAYS WILL MAINTAIN STABLE EXCHANGE RATE AT SUITABLE, BALANCED LEVEL  » RTR
> 
> my interpretation:
> 
> ...




Money tree,

Whats new ?    about this.

Bob.


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## markrmau (11 May 2006)

To me, things look really unstable here.

All these asian nations have been mopping up inflows of US currency so thier own currency doesn't appreciate too much - which would cause loss of competitiveness. 

The problem is that sooner or later the US$ must devalue - and all of the asian treasuries will look at the diminishing value of thier US$ assets. Everyone will want to head for the exits at once.

But then this analysis must be wrong - it should really have happened already. This information is public knowledge and has been debated for several years


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