"...It is also very possible that the rest of the world will come to the conclusion that the yuan is rather disproportionately overvalued instead of undervalued, as so many now believe! If the wolrd does, the yuan will crash and burn.
With a total crash of the yuan worldwide, and foreign currencies gradually trading with less and less restrictions against the yuan, how would China continue to feed its voracious appetite for commodities from abroad? The suddenly increased expense would instantly throw the Chinese economic miracle into reverse gear.
The currently prodigious demand for oil would cease virtually overnight. Steel, copper, you name it, would no longer flow into China. Private Chinese companies would suffer serious downgrades of their creditworthiness. The government would, too. Foreign investors would cease buying Chinese government and corporate debt - which would saddle the then already reeling economy with humongous interest payment burdens."
"CHINA'S DIRTY TRICK" By Alex Wallenwein
Fullarticle at http://www.kitco.com/ind/wallenwein/jun272005.html
Hmmnn....He's certainly no believer of a commodity super cycle like Jim Rogers. I think Jim Rogers, who made a fortune, along with his partner, Warren Buffet, years ago, has more credibility.
