Economic policy would vary as per situations

China hikes interest rates for 6th time(Washington Post,Dec.21,2007 page D8) Such policy means China is no longer tracking the direction of US interest rate policy i.e. tightening comes as the FED continues lowering rates to try to keep a recession at bay. The split could complicate China's monetary policy causing Chinese-curency-dominated assets relatively more attractive. Another outcome is upward pressure on China's RMB when the China People's Bank (central bank) tightens next year and US continues to ease. Almost everyone expects RMB to continue appreciating vs the US$ in 2008. That may or may not be in line with Sino-American economics in the short run or in the long run. That remains to be seen,indeed! Francis Shieh a.k.a. a lifelong student of economics. December 22, 2007 P.S. 5 million dollars for a Hamburger in Zimbabwe with inflation of 8,000 %. Well,we should feel good when we go to McDonald's to hit bargains. Hehehahahoho all the way and we shall live to be centenarians.(eat Chinese food to be added for good nutrition and health. Not an Ad with humor!)