Decode this...

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

money tree said:

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

Click to expand...

Money tree,

Whats new ? about this.

Bob.

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