Re: China & The Dollar
The only way this ends is in a huge inflation. History says so. Planned inflation amounts to robbing anyone that does not have their money in play-- anyone with savings accounts, CDs, etc. Inflation benefits the government and their contractors. This group gets to spend the inflated cash (cheaper dollars) at current value-- before the new currency percolates through the system and drives up prices of everything. By the time Joe six pack gets the new money, everything is more expensive and gets a negative benefit.
Perhaps real estate is going up in dollar terms but actually just holding value on non-dollar terms. Real estate prices imply a massive increase in the money supply. Remember expansion of credit increases the money supply in certain respects. Easy credit is inflationary.
Take a look at the gold sector today for the idea they have about China's currencies decoupling from the dollar.
As of Thursday, typical gold/silver sector stocks. Most are up 2-3 percent today.
Symbol Last Change (%) Bid Ask Volume
NEM 38.55 1.13 (3.02) N/A N/A 3,920,500
CDE 3.53 0.07 (2.02) N/A N/A 1,717,900
PAAS 15.49 0.48 (3.20) 15.48 15.50 568,613
GLD 42.49 0.29 (0.69) N/A N/A 1,531,700
CEF 5.27 0.09 (1.74) N/A N/A 268,800
|