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    Saturday, August 13, 2005

     

    China and the Yuan Revaluation

    I wrote this the day after the Yuan revaluation but didn't get around to posting it. Many of the ideas are still not mainstream.

    What you're not being told about the Chinese Yuan (RMB) revaluation:

    There was a lot of chatter before China's recent announcement that a revaluation of the Yuan would benefit the US by making Chinese imports more expensive. This in turn would help to support domestic US manufacturing and US exports would become cheaper and more competitive in China. All in all congress had become pretty sure that a revaluation of the Yuan was going to cure all that ails the US economy.

    Here are some of the truths
    The net effect of these forces is the opposite of the effect congress is looking for.
    I doubt this was anyone's objective but Chinese tourism to the US will probably increase as a US holidays become much cheaper.

    All these factors are more or less bullish for commodities.
    Comments:
    Amazing blog! I really enjoyed reading and hope you keep updating it frequently! I really liked the information on commodity trading! I have my own commodity trading blog if you would like to come and see what I have on mine! Also, may I put a link to this blog of yours on mine?
     
    Very nice work on your blog, It was fun to read! I am still not done reading everything, but I bookmarked you! I really like reading about commodity brokers and even created a commodity brokers blog of my own if you are interested!
     
    Very nice work on your blog, It was fun to read! I am still not done reading everything, but I bookmarked you! I really like reading about commodity brokers and even created a commodity brokers blog of my own if you are interested!
     
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    Disclaimer and Disclosure Analyses are prepared from sources and data believed to be reliable, but no representation is made as to their accuracy or completeness. I am not paid by covered companies. Strategies or ideas are presented for informational purposes and should not be used as a basis for any financial decisions.
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