Sunday, October 31, 2010
The PBoC are....(update 5)
still F****** with the market, but what choice do they have? The Federal Reserve may drop a figure between $500billion to $1trillion in qualitative easing on the 3rd November 2010, which will sell off the USD. China's Yuan currency fixing is a joke, as they attempt to maintain a re-inflation of their economy through housing and stocks. They simply do not need speculators buying Yuan, with 2 bubbles forming or formed (stocks and the mega bubble housing), a 3rd bubble being the Yuan is not negotiable. Therefore it's hemorrhaging value again.
We does it leave China, screwed.
The USD drops (if QE2 is close to a Trillion) oil will go forward over 80+. China a net importer or oil + an inflation blow out = eventually FUBAR
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