This is a fairly brief interview on Fox Business, but Jim does make several points very quickly in this one. Below is a brief summary of some of the key points:
- China is trying to manage 3 different agendas (open capital account, pegged exchange rate and independent monetary policy), but will find that impossible to achieve
- China is trying to keep massive capital from leaving the country (have already lost $1 Trillion)
- The result will be that China allows the Yuan to devalue much more
- The US will not like this, but China won't care because it's their least bad option among several bad options
- Yes China is using market manipulation, but the US Fed does too
- The US dollar is likely to remain strong for awhile during all this
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