Greenspan Says Asia Can't `Suppress' Currencies Indefinitely

[mumon]

http://quote.bloomberg.com/apps/news?pid=10000080&sid=arg2GdlGHkkQ&refer=asia

July 16 (Bloomberg) -- U.S. Federal Reserve Chairman Alan Greenspan said Asian nations can't ``suppress'' the value of their currencies indefinitely and suggested for the second time in two days that China must eventually make its exchange rate more flexible.

Japan, China, South Korea and Taiwan have the largest foreign currency holdings in the world. ``The motive here, in many respects, at least as I judge it, is to suppress the value of their currency,'' Greenspan told the Senate Banking Committee in Washington. ``They cannot do it indefinitely....


One pressure point is textiles. The U.S. textile industry may shed as many as 630,00 jobs, more than 60 percent of its domestic workforce, in 2005 and 2006 after the removal of quotas limiting Chinese imports at the end of next year, according to a report earlier this month by the American Textile Manufacturers Institute, an industry group.


Wow! Snippy's making Hoover look like Roosevelt...

[DrPepper]

1. Diversify out of the dollar

Even more reason to sell dollars and buy something else. I'd say gold if the price wasn't so obviously suppressed.

[Andy_Stephenson]

2. I've been

buying gold for 2 years.
Avg price 296.00 per oz.

[Neutrino]

7. China switched 15% Dollars into Euros the year before last

and last year as well. I don't know about this year, but I suspect
as long as it was profitable China would continue.

[xchrom]

3. are there time lines

for when this event might happen?
it's always hard to predict what someone else is going to do.

[Neutrino]

4. China is the strongest Economy in Asia, and can hold

down rmb for as long as it takes--of course not forever.
It's like somebody telling me I have to cover my Short in QQQ,
which will happen when donkeys fly!

Nobody dictates to China.

[mumon]

6. Yeah, there whistling pat the grave-yard...

ANOTHER thing about this is that China is gonna wind up holding HUGE amounts of US debt.

Which they can then use as leverage against us, if they want.

Luckily, they're not much on empires (though human rights is a problem).

[mumon]

5. Diversify out of the dollar, yeah, but 630,000 MORE LOST JOBS??!?

This is incredible. The rate at which we're careening to Depression is astonishing.

And Chimpy's band plays on...

BUT there IS solution: a simple one:

Merely re-set the clock income tax-wise, adjusted for inflation back to 1969!