Saturday, July 23, 2005

China Floating 

China has caved to international pressure to float the Yuan against other international currencies including the dollar. Some economists appear concerned this will have quite a negative on the US economy as Chinese exports cost more they will have less money to spend on supporting the US national debt, but I will put my chips on Alan Greenspan who said earlier this week that there would be an impact, but the bond market is competitive enough that the impact would basically be minor. It will be interesting what impact this has on US exports and job markets as well as the price of the dollar.
Here is the story link

China: Reforms Prompted Currency Change
Friday July 22, 11:49 pm ET
By Joe Mcdonald, Associated Press Writer
China Says Exchange-Rate Change Prompted by Progress in Financial Reforms


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