Guan, head of state-owned Chinese rating agency Dagong: This rating on the US credit crisis has a significant influence on the world. China is the largest debt holder of the United States, and the downgrade will primarily damage the value of the US dollar assets and bonds held by China. Second, it will influence China's export of commodities to the United States in the future. More importantly, it will lead to the deterioration of global macroeconomics for both developed debtor economies and emerging creditors.
My view. If China is worried about the US debt, why don't they let the RMB appreciate instead of keeping it so undervalued?
They keep the RMB undervalued so we keep buying from them and they keep their factories going.
Why then do they complain?
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.
Disclaimer.The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
No comments:
Post a Comment