tag:blogger.com,1999:blog-1527766217650773141.post520923743262618136..comments2023-07-12T06:12:30.772-07:00Comments on Demand Side Transcript: Rebalancing the global economyAlanhttp://www.blogger.com/profile/07323700324276425194noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1527766217650773141.post-47707060413334458642007-11-13T22:06:00.000-08:002007-11-13T22:06:00.000-08:00The geopolitical point here is that while it is no...The geopolitical point here is that while it is not in the national interest of China to have the currency go down, the primary way the Chinese can influence the price of the dollar is by holding onto it. Thus the Chinese are in the same situation as homeowners in the US for example, watching their asset deteriorate before their eyes, but not being able to bring themselves to sell it.<BR/><BR/>Further, because the RMB is tied to the dollar, it is losing value as commodities priced in dollars go up. Squeezed is the price of labor.<BR/><BR/>Two very big pressures to watch.Anonymousnoreply@blogger.com