Chinese Yen and Inflation Dangers
The IMF will be discussing this and this might help alleviate the trade deficits and global imbalance now. China also promised to work on its water pollution problems this week as well and work on in the next decade to bringing pollution free water to 300 million plus people.
China seems to understand that the trade deficits are going to come back and bite them although they like the industries such as Aircraft, autos, computers, television and electronics. China wants more of that and all it can get, where as they are wanting other sectors to cool a little if that pleases their trading partners.
If China allows the currency to float there could be 20-30% in there. But China is not going to let it go, why would they? The minor changes now are not significant in the over all growth rates of China, although this could be a signal that they tend to stand tall and play in the money game of world markets. Lots of interesting stuff in Chinese banking and monetary policy right now indeed.
The IMF will be discussing this and this might help alleviate the trade deficits and global imbalance now. China also promised to work on its water pollution problems this week as well and work on in the next decade to bringing pollution free water to 300 million plus people.
China seems to understand that the trade deficits are going to come back and bite them although they like the industries such as Aircraft, autos, computers, television and electronics. China wants more of that and all it can get, where as they are wanting other sectors to cool a little if that pleases their trading partners.
If China allows the currency to float there could be 20-30% in there. But China is not going to let it go, why would they? The minor changes now are not significant in the over all growth rates of China, although this could be a signal that they tend to stand tall and play in the money game of world markets. Lots of interesting stuff in Chinese banking and monetary policy right now indeed.
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