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To: TigerLikesRooster

In order to maintain the exchange rate with the dollar, they have to print money to buy up dollars at the fixed rate. So if we print money, the inflation turns up in China.

If they want to stop inflation, they will have to allow their currency to strengthen.


5 posted on 04/17/2011 5:44:25 AM PDT by proxy_user
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To: proxy_user
they will have to allow their currency to strengthen.

Current Chinese regime is not known for breaking status quo, no matter how damaging it would be in the long run. Just as U.S. keeps printing money, they will, too. Both will go down together.

7 posted on 04/17/2011 5:53:13 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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