China to let Yuan rise if US cut QE programme

Discussion in 'Economics' started by Dogfish, Oct 14, 2010.

  1. Dogfish


    Seems to be getting some traction this story/rumour, back door deals looking to be done, being picked up on Reuters by IFR newswire.

    Makes sense I guess but what the exact deal would be in terms of figures would be interesting...
  2. This is stupid. U.S. can do QE2 and Yuan would rise anyway. What I'm trying to say is Yuan is going higher regardless.
  3. Dogfish


    True but it's a time frame thing, China don't want to roll over on it and this is their bargaining chip. Can't see a solid deal happening any time soon though but guess it's on the table.

    Probably never admit to it, you just get fed doing $50bil a month QE then china widening its band all as a happy coincidence
  4. Tsing Tao

    Tsing Tao

    you need to think before you open your mouth and just spout off.

    it is quite possible that the QE2 madness (in spite of just about everyone saying how bad it would be to do such)) is being done to force China's hand in unpegging to the dollar. essentially what the fed is doing is saying "fine, you want to stick to the dollar no matter what we say? we'll flood your economy with trillions of dollars looking for a home. the inflation that will hit you will make you wish you pulled the peg." china can raise rates until the end of the world. but if it maintains a cheap dollar, and the dollar is cratering because the fed is trying to shake it (and other asian currencies) loose, then inflation will come to a chinese home near you.

    go ahead, try capital controls. try intervening in forex markets, or pegging. you cannot fight the fed because the fed owns the reserve currency printer. benny and the inkjets will win out in the end.

    it is quite probable that china realizes this and they (along with many other asian countries currently cowering in fetal positions at their currencies) are willing to finally play ball.

    that may be the one thing that stops QE2. and if it does, watch out below for market corrections on a grand scale.
  5. Fuck off and suck my Harry Cock. I don't given shit what you think.

  6. Tsing Tao

    Tsing Tao

    that's kinda the response i expected from someone of your intellectual prowess.

    and hairy is spelled with an "i". unless you've actually named that tiny pimple below your belly "Harry".
  7. that's total garbage
    why to destroy own country to force someone to revalue their currency?
    PPI is 4% already. CPI more benign probably but QE2 hasn't started yet

    what US must do is to implement tariffs to ban labour arbitrage
    they will get burst in inflation and will improve fiscal balance
  8. Tsing Tao

    Tsing Tao

    so you remove the result, but not the cause?

    this site gets more and more entertaining by the day.

    hmmm, interesting article on the very subject you claim to be total garbage.
  9. JamesL


    You actually named your cock?
  10. China doesn't want to become the biggest bagholder in history.
    #10     Oct 14, 2010