On Sat, 22 Sep 2007 21:26:43 -0700, Smitty Two
wrote:

In article , h wrote:

is the Chinese government
populated only by control freaks

um, it *is* communist.

With that kind of simplistic thinking you wouldn't know what hit you
when it does. This thread is small potatoes in the greater scheme of
things. The tsumani that will hit before the year is out will be
which country will come out least mangled by the banking and monetary
crisis triggered by the subprime crisis.

Quote:


http://www.telegraph.co.uk/core/Cont...&site=1&page=0


Fears of dollar collapse as Saudis take fright
By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 10:14pm BST 21/09/2007

Saudi Arabia has refused to cut interest rates in lockstep with the US
Federal Reserve for the first time, signalling that the oil-rich Gulf
kingdom is preparing to break the dollar currency peg in a move that
risks setting off a stampede out of the dollar across the Middle East.

"This is a very dangerous situation for the dollar," said Hans
Redeker, currency chief at BNP Paribas.


China is not going to help either:-

China's inflation policy
stirs the world
September 22, 2007
http://www.atimes.com/atimes/China_B.../II22Cb01.html

China's current inflation is a case of prolonged currency
undervaluation in tandem with export-led growth. As such,
exchange-rate revaluation should be a central element of its
anti-inflation policy. Instead, China has chosen to rely exclusively
on monetary tightening, raising interest rates and reserve
requirements on bank deposits. This places the burden of
trade-imbalance adjustment squarely on the US. - Thomas Palley

PPP: Palley's article also warns China not to hold onto the fixed
exchange rate with the USD. Probably not. But any upward revaluation
of the Yuan will come too late to rescue the USD. The only question
now is how low will the USD fall? My guess is a 20 percent drop.