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To: Arguendo
Their argument is that inflation would force the Chinese government to stop printing yuan, which would kill the dollar peg and allow the yuan to rise dramatically against the dollar.

Isn't that inflation would first cause yuan to drop against the dollar, then, with printers stopped (if such thing ever happens anywhere) to rise... making it even, I suppose.
9 posted on 03/15/2009 7:58:10 PM PDT by alecqss
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To: alecqss

I’m not sure it would end up even, but there some negative feedback factors which is why I’m not particularly worried.


15 posted on 03/15/2009 8:10:34 PM PDT by Arguendo
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To: alecqss

And BTW, I don’t necessarily see a “dollar collapse.” It’s more of an eventual and inevitable balance in globalism. Granted, though, the more merchants and bankers implement schemes to put that balancing trend off, the more it’s going to hurt.

I hope that it brings them down. I hope that oil, and consequently, freight fuel, go sky high. We need new leadership in business, which will bring us better favored (moneyed) constituents, and thereby, better politicians.


34 posted on 03/15/2009 9:15:15 PM PDT by familyop (As painful as the global laxative might be, maybe our "one world" needs a good cleaning.)
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