Replies to post #11197 on Short Term Trading Member Forum

[frenchee]

Bliss,

When you mention the "oils," are you talking about large and small oil producers and oil service companies or some subset thereof?

[mr_cash4]

bliss, re. yuan/dollar, it's NOT good news for the U.S. Dollar because this will DEVALUE the dollar, i.e. the dollar will drop, NOT rally.

furthemore, falling currency ALWAYS leads to inflation/hyperinflation (and this should be obvious to everyone because now all these goods sold here that are made in China will cost more as the yuan strengtens vs. the dollar, hence inflation), meaning also that the interest rates are going to rise, further cooling off the economy (meaning both that people will not be able to buy as much "stuff" because now it costs more as well as cost of financing i.e. interest rates will rise) and more importantly colling off the housing market (imho with devastating consequances EVENTUALLY), so, I have no clue how this is a good thing for the U.S. Economy in the long run.

I am NOT aware of a single instance that a heavy depreciation of the nation's currency led to an economic boom; on the contrary, every example I am familiar with lead to a severe economic crises (Weimar Germany in late 1920s/early 1930s, Mexico in early 1990s, Argentina just a few years ago, etc. etc.)

and imho it has ZERO relevance on the oils - I mean, what's the link/relationship?