James Kar

Inflation vs. Deflation: What Are Investors Facing?

You are exactly correct. China needs to deal with the dollar situation very carefully. I think this is why China is gradually and slowly open up the capital market for RMB. Now, foreign firms can issue bonds in RMB for China expansion. Also, China starts to settle trade with its neighboring countries using RMB as well. This actually is more dangerous that people think. Because the changes are so slow and gradual, most people will not pay too much attention.


On Jun 19 12:58 PM daves1001 wrote:

> Yes, China is in a delicate position. Seems like their best strategy
> is to gradually wean themselves of investing in treasuries and hope
> that the dollar does not completely collapse before they have most
> of their eggs in other baskets.