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US Treasury Chief wants China to revalue their currency

lil dickie said: "Henry Paulson made demands on China to [url=http://afp.google.com/article/ALeqM5gJ81L3QieYzP6fm3FhDWVVnsWNXQ]revalue the Yuan[/url] [quote] He said that allowing flexibility of the tightly-controlled yuan was critical to cool the world's fastest growing economy battling serious inflationary pressures. "A more flexible currency is especially important now, when the risks of inflation are clearly rising in the Chinese economy," Paulson said ahead of high-level talks between Washington and Beijing on key economic issues. Paulson, speaking at a US-based Asia Society forum, said increased currency flexibility would allow China's central bank to "use the powerful tool of monetary policy for China's financial and price stability." Economists have partly blamed Beijing's market intervention to contain the yuan's rise as a factor for fuelling inflation, overheating growth and asset-price bubbles in China.[/quote] If you think about it: an inflated yuan is the reason oil prices are ramping up despite China being a "low-cost manufacturer". What do you think about the Chinese yuan?"

AlfredSokol said: "Of course the Chinese are manipulating their currency. It seems like relations are going to be getting chilly."

newinvestor123 said: "[QUOTE=AlfredSokol] It seems like relations are going to be getting chilly.[/QUOTE] Another reason to buy gold..."

AlfredSokol said: "[QUOTE=newinvestor123]Another reason to buy gold...[/QUOTE] I don't have anywhere to [B]put it. [/B]"

newinvestor123 said: "[QUOTE=AlfredSokol]I don't have anywhere to [B]put it. [/B][/QUOTE] Stocks...."

AlfredSokol said: "That's the only investment I would consider concerning gold. But I still don't like the commodity based nature of gold. It can go out of style as fast as it comes back in."

Heather said: "It always seems like the Chinese are tied into risky behavior. It comes as no surprise that their currency is whack, too. Do you think they'll change anything though?"

lil dickie said: "We are heading towards a showdown with the yellowman I fear. :roll:"

AlfredSokol said: "China: 1) Doesn't respect intellectual property which is now America's primary resource 2) Don't treat humans with respect and basically engage slave labor to make trinkets 3) Have intentionally manipulated their currency so they have a competitive advantage over the US and Europe 4) Created a "bubble" which is bound to burst. They are heading for a fall."