disappointed market, page-18

I speak to the Chinese factories and they tell me they have inflation problems based on input costs.
How can you say China's inflation is based on the usd when the currency is not floated.

The yuan has only dropped in value against the USD by 4% over 3yrs. Therefore the Yuan being devalued is insignificant incomparision to the 200 to 400% rises in commodities.


Are you suggesting analysts are wrong by saying gold is being used as an inflation hedge?

On one hand you say that gold is not used as an inflation hedge but on the other you say the reason gold is so high is the usd is weak. That is another way of calling gold an inflation hedge.

The gold price moves down nearly every correction. The only time it didn't was the other day when the market didn't believe the U.S. would lose its credit rating.
That tends to indicate well informed institutions are in control of the gold price and futher evidence that it's used as an inflation hedge.

If China was to float its currency as you suggest they would lose market share and become too expensive.