Talk about timely:  Yesterday, I pointed to a fascinating piece of research/commentary from GaveKal Research Limited of Hong Kong, Stockholm and New York.

Today, the People’s Bank of China revalued the RMB by 2.1%, from 8.27 to 8.11 to the US Dollar, against a basket.

Be sure to read that piece as to some of the dangers to the US economy of this revaluation.

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More to come on this later . . .

Category: Currency, Economy

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Careful What You Wish For . . .”

  1. L. Smith says:

    I’m not a currency expert but somehow I see this as a legitimate way for the chinese to move away from buying US treasuries to control the peg, and incorporate other currencies in their currency management operations. Is my understanding of this correct?

  2. Barry says:

    absolutely! Higher rates acomin’

  3. John East says:

    L. Smith,
    If the Chinese stop buying US treasuries how will the US fund its deficit? Can the US indebted consumer and mortgagee survive rate increases?

  4. Anmol says:

    US Gov is planning 900 Bill worth of issuance this year. Wonder who will buy ? And what happens when Malaysia, Thailand, India and the rest of Asia sell treasuries.. Bonds are getting knocked today..