To: familyop
Or it could be that China is responding to Donald Trump, by deciding to reset their currency peg to the dollar.
They pull out of dollars. Reset their currency. They get back in at the new rate. Immediate profit.
In theory, anyway. :D
4 posted on
02/05/2018 7:39:01 PM PST by
cba123
( Toi la nguoi My. Toi bay gio o Viet Nam.)
To: cba123
Im not an expert on economics but Im pretty sure you forgot the step where they steal the underpants.
34 posted on
02/05/2018 9:08:33 PM PST by
gnarledmaw
(Hive minded liberals worship leaders, sovereign conservatives elect servants.)
To: cba123
"Or it could be that China is responding to Donald Trump, by deciding to reset their currency peg to the dollar.
They pull out of dollars. Reset their currency. They get back in at the new rate. Immediate profit."
There might be something to that, although I haven't checked to see how much effect the Chinese call to sell treasuries had. That could lower bond prices. The rate (yield) would have to go up for them to profit from it, though. Raising yields can lower prices, but I don't know if that works in reverse (i.e., lower prices causing higher yields). ;-)
Could be, though, that the PLA was banking on our Fed raising the rate again, though, so they could buy in again cheaper. That could backfire, too, BTW, causing a selloff in treasuries with suckers holding cheap treasuries (higher yields, lower prices.), unless they're in it for the long terms.
37 posted on
02/05/2018 9:22:44 PM PST by
familyop
(President Trump said that we're all important, so let's do something!)
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