Global Economic Competition in action: US,China and EU i.e. US Dollar,RMB(Chinese currency) and Euro:
Both US and EU have been plagued with problems of low growth and high unemployment but EURO has been a strong currency and RMB seems strong as well. China's economy needs to be cooled down as RMB is gaining value Vs US Dollars in foreigh exchange market.
Supposing there is an inflow of $100 billion into China as investment and more and more downward pressure is put on the US Dollar breeding record-breaking inflation of food prices in USA(say over 10%) which may be similar to the rate of inflation in China. When investors pull money out of American securities, stock market will fall again. It is the game of betting in or out of USA or China. Any scenarios would bear the evidence of globalization in the 21st century as I would envision. Thanks for your time in reading and your feedback is invited to assure equal opportunity of expression as guaranteed by the Constitution of USA.
Francis Shieh a.k.a. Xie Shihao on March 31, 2008 at 10.08 a.m.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment