Tag Archives: currency peg

Is the U.S. Dollar Set to Soar?

Hating the U.S. dollar offers the same rewards as hating a dominant sports team: it feels righteous to root for the underdogs, but it’s generally unwise to let that enthusiasm become the basis of one’s bets. Personally, I favor the … Continue reading

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China: Doomed If You Do, Doomed If You Don’t

Many commentators have ably explained the double-bind the central banks of the world find themselves in. Doing more of what’s failed is, well, failing to generate the desired results, but doing nothing also presents risks. China’s double-bind is especially instructive. … Continue reading

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China, the Hollow Dragon

It is widely assumed that manufacturing (a.k.a. the world’s workshop) is the source of China’s wealth. But how can this be true, given that manufacturing profit margins are razor-thin in China, and have been since the early 2000s? Given that … Continue reading

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Will China’s Currency Peg Be the Next to Fall?

I suspect China’s leadership is wary of unpegging the RMB for one reason: the FX market is too large to manipulate for long. What is China’s currency the renminbi (RMB, a.k.a. yuan) really worth? Nobody knows, because price discovery has … Continue reading

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