http://jubakpicks.com/2009/11/17/an-undervalued-chinese-currency-is-bad-for-the-world-but-could-be-profitable-for-you/ Thu, 11 Mar 2010 04:55:59 -0500 http://wordpress.org/?v=2.9.2 hourly 1 http://jubakpicks.com/2009/11/17/an-undervalued-chinese-currency-is-bad-for-the-world-but-could-be-profitable-for-you/comment-page-1/#comment-1855 nukeage Wed, 18 Nov 2009 17:33:27 +0000 http://jubakpicks.com/?p=2193#comment-1855 Thank you for being reasonable yet encouraging, as usual. So, you recommend putting money into a mutual fund that invests in China at this point? I have switched my emerging-market investment from mutual funds to ETF in preparation for "carry-trade-over-then-get-the-hell-out" event you have mentioned elsewhere. I understand there's a difference, but my brain is NOT cooperating! Thank you for being reasonable yet encouraging, as usual. So, you recommend putting money into a mutual fund that invests in China at this point? I have switched my emerging-market investment from mutual funds to ETF in preparation for “carry-trade-over-then-get-the-hell-out” event you have mentioned elsewhere. I understand there’s a difference, but my brain is NOT cooperating!

]]> http://jubakpicks.com/2009/11/17/an-undervalued-chinese-currency-is-bad-for-the-world-but-could-be-profitable-for-you/comment-page-1/#comment-1845 richard.bready@gmail.com Wed, 18 Nov 2009 06:31:05 +0000 http://jubakpicks.com/?p=2193#comment-1845 In 1933, the US depreciated the dollar by 40 percent, to the benefit of its trade balance and economy, and to the dismay of Britain, Germany, and France. In 1985, the US depreciated the dollar by 51 percent against the yen, creating the Japanese asset bubble and destroying Japanese prosperity. Why should China stop depreciating its currency, in favor of other countries' economies instead of its own, because the US asks it to? Real political pressure will be required to make this happen, and the political muscle to exert that pressure is not readily visible. In 1933, the US depreciated the dollar by 40 percent, to the benefit of its trade balance and economy, and to the dismay of Britain, Germany, and France. In 1985, the US depreciated the dollar by 51 percent against the yen, creating the Japanese asset bubble and destroying Japanese prosperity. Why should China stop depreciating its currency, in favor of other countries’ economies instead of its own, because the US asks it to? Real political pressure will be required to make this happen, and the political muscle to exert that pressure is not readily visible.

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