Maybe means pog falls in USD,and AUD falls. Quote The move came after Beijing said earlier in December it was switching to a "prudent" monetary policy, from its earlier "moderately loose" stance. Analysts said the change of wording, along with a recent pledge by top leaders to make inflation fighting a top priority for 2011, could pave the way for more interest rate increases and lending controls. "We expected a rate hike by the end of the year, though Christmas Day is something of a surprise -- a rate hike is not normally on the wish-list for Santa Claus, but in China's case this is a prudent move," said Brian Jackson, economist with Royal Bank of Canada in Hong Kong. "We think it is increasingly clear that using quantitative measures, such as reserve ratios, to rein in liquidity and credit has not been enough, and that adjusting the price of credit -- that is, interest rates -- is needed to get price pressures under control." http://uk.reuters.com/article/idUKTRE6BO09A20101225
And yet http://www.zerohedge.com/article/nordeas-chart-week-collapsing-us-import-demand Look at 2008 cf today
http://english.ruvr.ru/2010/12/13/36728384.html http://english.ruvr.ru/2010/12/23/37570459.html http://english.ruvr.ru/2010/09/27/22568016.html Russia, China start yuan trade. Oil now denominated in communist currencies between them. Interest rates going up in China flying in the face of the US. War games between the two countries. And virtually no western coverage on one of the most significant economic events in decades. Oil priced AND TRADED outside the $US. You can throw away your charts now The y axis just got changed to the yuan axis, ... ... ... ... (Now that's axis power) What happens when Russia demands payment from EU gas / oil supplies in communist favoured mediums Well let's monitor their war games shall we The world is in an economic war and most will not know it ...
I think you guys are just freakin about nothing, all the BOC is doing is trying to slow inflation. (Just like the RBA) I don't see a run on the yuan at all, China's currency value is still at the mercy of global consumer markets. If the US currency goes to shit, then the yuan falls in the same hole. Remember the US still represents 75% of the consumer goods market. China knows this, that's why they still play humble servant.
Check out what happen to Germany stock market in the wake of China's interest rate hike announcement. http://www.zerohedge.com/article/europe-opens-mini-flash-crash
The announcement of the 25 basis point rate hike in China had an immediate effect on industrial commodities prices, and should be a clear warning sign to western economists. Stock prices slumped in reaction as investors priced in the diminished demand that must obviously result from tightening lending policy in China. The lesson? That the apparent exuberance driving the U.S. stock market to new highs could be so easily snuffed out by the equivalent of a slight shrug by the Chinese economic regulator means that, yes, China is growing a big, big bubble. But it is a big bubble that it can control much better than the United States was capable of, and when China decides to let some air out of its bubble, it is the U.S. and Europe that will suffer. In its attempt to subvert growing Chinese economic dominance by printing endless piles of increasingly worthless dollars, the United States has inadvertently handed the one thing to China that it thought it would always have: control of the world economy. http://www.kitco.com/ind/West/dec272010.html
The Australian dollar doesn't seem to have noticed any impact from this announcement... I am surprised.
Jonesy, give it a few days. The Christmas cheer has most everyone in various stages of denial. Trust me, they will wake up sooner or later. My target for the next 2 weeks is $1 AUD = $0.9850 USD My target for the next 2 months is $1 AUD = $0.9200 USD Next 2 years, $0.4500 USD - yes, I am serious
benjamind2010 I rate your economic predictions. I'm not sure where you come up with it half the time but I don't care. Almost every prediction you make would benefit my personal situation. I can only hope you are right.
Yeah big pinch of salt to be taken with all this doomsday stuff. From what I've just read the massive hole was caused by a computer malfunction. Oh wait there's a knock on the door.....It was a man in a light green army uniform, he wants my clothes, my boots & my motorcycle !!
