Hi Traders,
I hope your long weekend was more than just “long” and you had some BIG fun. You know, it’s been interesting watching the current currency debacle. And, you have to wonder where it’s all going. Or, maybe you don’t care. No matter; but I for one, do. Anyone else?
So, with China’s Mr. Hu meeting with the head PooPah in DC this week to talk about trade and finance and “patching things up” with the US, I found this statement REALLY interesting:
“The current international currency system is the product of the past” Hu said in a written response to questions posed by writers ahead of his meeting with the U.S. President today. Highlighting the dollar’s importance to global trade, Hu implicitly criticized the Fed’s recent decision to pump $600 Billion (QE2) into the U.S. economy, a move criticized as weakening the dollar at the expense of other countries’ exports. Hu, went on to say, “The monetary policy of the United States has a major impact on global liquidity and capital flows and therefore, the liquidity of the U.S. dollar should be kept a a reasonable and stable level.”
Man of man! That’s quite the comment, don’t ya think? And, it probably has a lot of merit. After all, have you been watching the yuan!
Oh, and there’s this:
“Driven by its huge trade surplus and strengthening currency, China is moving quietly bu swiftly to increase investment in U.S. Manufacturing and real estate. The U.S. is second only to Australia (where they get the majority of their raw materials) as a destination for Chinese investment…”.
Is it time to learn how to speak Chinese?
Keep living large!