william the wie
Gold Member
- Nov 18, 2009
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The PBOC announced yesterday it would stabilize the currency by selling dollars and buying the yuan. This also makes it easier for Chinese families to buy Canadian citizenship. That leakage combined with sinking prices for US bonds means this fix could get complicated quick. The PBOC also needs to buy Euros and sell Yuan and it is easiest to buy Euros with Dollars. When will overleveraged companies add even more complications I do not know but this kind of currency defense tends to end badly and fairly quickly. My guess is that smuggling US foods into China will be the biggest complication.