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Yuan The future has never been so distant as now Economics, 090308 So, it seems as things are taking a turn for the worst. Just as Roubini and Farber had predicted, the suckers bear rally has ended. The risk of depression has increased and the only reason why the dollar is so strong, is that the world expect Wall Street to lead the way out of the bad times. Or so I am told! But what if that is wrong? Roubini argues that the eurozone is to slow on stimulating the economy and several seems to agree on the fact that US will need help to pull through. I can understand why people put there trust in US to sort out the problems and lead the way but what I ask myself is what will happen if they can not. Prominent people talk about this risk, but even though the market shy stocks they still have faith in the dollar. But then again, there is the severe risk of dollar hyperinflation. So what will happen if the market suddenly decides that US assets linked to the dollar is to great a risk to carry? What will people then do? Will people invest their wealth in gold or will there be a rally to something else? The idea that I am playing with right now, is if Yuan could attract interest. I no nothing about economics or how such things, but there is so much talk about the power balance shifting towards China and as I understand, the Chinese have kept their currency artificially low to support export. Then there is talk about how much wealth there is, the Chinese being a saving people and then there is the talk about how they must have 8 percent growth, in order to keep the bad times a stern. Perhaps Yuan will strengthen? I also think a lot about the fundamentals for commodities, minerals and oil in particular. China is a big oil consumer and are buying a lot of oil right now. Could it be that the price for oil will go up, when the wind turns? And how much oil do we have left? For how long would an 8 percent growth in China be sustainable? - Aramis 
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Personal Blog of Aramis Welcome. Filter: Show all, Personal, Programming & Design, Spirit, Economics. There is no particular goal to this blog, but to convey what I find interesting and worth writing about. Get blog as RSS or ATOM  .
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