.... china to revalue? .... huge implications! , page-2

... china to revalue? .... part ll. Hi,

Why "huge implications"?

Note it says ".... In recent months, China has been buying the U.S. currency in international markets in order to maintain a fixed exchange rate of around 8.28 yuan per dollar, which was set in 1994 ..."

The US Trade Deficit is currently running at US$1.5 billion /day. That's more than US $1,000,000 every minute of every day.

And who, by buying Treasury Bonds, has been lending them this huge amount of money? Mainly Japan, but also China.

And just to counter those that say China has to keep supporting the US since the US is the one buying all of China's growing production, Sinclair states .... Keep in mind that the US represents only 20% of China’s export market. ....

JS obviously runs on steroids in regard to gold (bless him), but he does not fudge statistical facts. He says further ....Either method of yaun revaluation will leave Japan as a one nation supporter of the US dollar with all that means in terms of an island nation single handedly monitizing the enormous and growing US triple deficit debt. .....

The US government needs to keep raising huge amounts of money - through the issue of Treasury bonds. So, who's going to keep buying them if China drops out?

Japan?

Alone?

US$50 billion/month?

Every month and rising?

Forever?

And the Trade deficit is just one piece of America's woes. The US budget deficit is just as big, if not bigger.

Mr Magoo simplyhas to keep printing more bits of coloured paper. Lots and lots more!

I guess the thrust of it all is - got gold? got silver?

bye.dub

(ps. just stepping outside the box for a moment - what would happen if China was to link/tie it's currency to gold? eh?)