Posted on 11/26/2009 3:09:32 AM PST by TigerLikesRooster
FX COLUMN-China may have misplayed yuan hand with Obama
11.25.09, 11:26 AM EST
By Neal Kimberley
LONDON, Nov 25 (Reuters) - China may come to regret not offering U.S. President Barack Obama more concrete encouragement on the future direction of the yuan during his recent visit.
Make no mistake, Obama cannot afford to let this go and China may eventually have to move further on the yuan than would have been necessary this time.
The way it is likely to play out is that a disappointed U.S. administration falls back on the Group of 20 agreement on global rebalancing, which will ultimately require a weaker dollar and a stronger yuan.
Mindful of this, the currency markets will see no reason to halt the dollar's general decline.
The euro, the Australian, New Zealand and Canadian dollars and even sterling will attract further inflows.
(Excerpt) Read more at forbes.com ...
Ping!
For any young Freeper Americans struggling to pay off their student loans in the US in US Dollars, I would encourage them to come to Japan, work like hell (maybe at an English school and then some on the side on Saturday’s and Sunday), get paid in Yen of course, and then pay off one’s student loan in probably 1/3rd the time it would take to do it solely in the US on the US Dollar-based economy and currently IN the US economy. Yes.
do you know of any such places?
My nephew, a George Washington University grad w/ $120,000 in student debt, is teaching English in Japan for a 3-year hitch and will be debt free by the end. Smart kid. And the Japanese girls treat him like Adonis. Will he come back? We’ll see!
See. He’s got TWO good things going for him right there! ;-)
During the 'lost decade', Japan did what we are doing now - lent out money at zero interest. Many people borrowed this money and invested it in other, bubble areas outside of Japan, like the US stock market. Now the yen is going up, those who need to pay back those loans are scrambling to do so fast, using dollars available from the Fed at zero interest.
yep.
Hah. Whether it’s a question of who’s the better poker player, the better long-term strategist, or the better horse-trader, you gotta go with China here.
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