Goldman on the Yuan - What Do They Know?

Discussion in 'Economics' started by Banjo, Feb 15, 2010.

  1. Banjo


  2. Jim O'Neil has also said recently that S&P might revisit under 1,000 and then its going to go up and up and up.

    Why would China revalue the RMB up with US turning protectionistic soon? the only way for their exports to start moving again would be to devalue the RMB, exporting is the only game in town in China for years to come despite all the babble talk about domestic consumption and moving up the value chain in terms of production.
  3. The reason China doesn't want to revalue is that it would in essence inflate away their dollar reserves. If you had 2 trillion, would you want to take a 200 billion hit?
  4. Rice, maybe it would be worse than that.... loan creation would get more problematic.. especially for exporters... and I'm told their are even cheaper producers in South East Asia waiting for a piece of action...
  5. you are only looking at one side of the coin. sure they dont want to, but it would such a nice fu message to the US and how much would exports rise if they did devalue, especially if the US starts putting up tariffs.
  6. I do not understand the implications of this.

    Greenspan made noise for China to do this for quite some time.

    If this is a GS set up, up or down markets?

    I can't see the how or why GS will get the blessing of this administration to advocate for this. (not that they may have had anything to do with this), just saying they are getting in position to take advantage of this or may be a point man for the press.

    If we put the economic realities aside of this revalue and nothing bad or nothing good happens, psychologically something is going to move one way or another.

    What is the politcs of this, maybe that is what I'm hunting for, has to be posturing of some sort rather than an economic move. I'm guessing the economic fallout can be mitigated.
  7. fhl


    I found of interest the statement that "china moves money around the country to the sectors that need it, not pricing according to risk".

    Either there's an implosion coming in china or we've finally found the right communist people to run a country.
  8. FredBloggs

    FredBloggs Guest

    who gives a rats ass what gs or anyone else thinks?

    the market is bigger than gs alone.

    look at market generated information, not some twat analyst who gets paid to tell people what his/her boss wants the mob to believe.

    smell the coffee droids.....
  9. 0bama


    It is never about what Goldman Sachs knows....

    They are not that bright!

    They are however, extremely well connected........

    In life, it is not what you know, but WHO you know!