2007-09-27

Global Rising Rates Repercussions (6)

Resilience of the US dollar

5) While the resilience of the US dollar, it appears that the moon and stars have converged to force the issue.

If the Fed tries to delay the substantial correction in US dollar, they will have no choice but to put in further increases in rates.

The next rate increase may still not be sufficient to derail the status quo.

Roughly 3 times of 50 basis points increase.


6) What China is doing in raising rates is more to protect its domestic overheated economy.

China will allow for the yuan to appreciate gradually.

Both will put a stifling effect on Chinese stocks .

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