Replies to post #236786 on Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

Next shoe to drop- RMB revaluation up 8% IMTO
Roach has been pointing this out for weeks, same for mini-Roach (Andy Xie)

http://www.morganstanley.com/GEFdata/digests/20040426-mon.html
"Of course, the PBOC (Peoples Bank of China) is on the global hot seat. In an effort to stem the mounting excesses of an overheated Chinese economy, it has tightened monetary policy three times in the past seven months. China’s central bank is also the nation’s official arbiter on matters of currency policy. Outside of China, of course, the world continues to believe that China must give way on its all-important peg — a fixed relationship between the renminbi and the dollar that has prevailed since late 1994. The currency argument has been couched in both political and economic terms — most recently driven by American politicians who blame China for trade deficits and a jobless recovery and also by those who believe that an “undervalued” RMB has become a serious source of instability for a rapidly growing and increasingly inflation-prone Chinese economy. For some time, the RMB issue has been one of the hottest topics in world financial markets. Speculators have been betting that it’s only a matter of time before China gives on this key pillar of its macro policy framework.