House panel set to approve China currency bill

[tony4562]

China is in a tight pickle. Inflation is spiking so they had to raise interest rates. They can't afford to drop it or face hyperinflation. What China will do is what they have been doing for the last several years. They will print more money and buy FX reserves to depreciate the RMB. The Chinese bubble will continue and so will its soaring inflation.

Inflation is much lesser a problem in China than it is in India. China for example is not experiencing double-digit inflation on food items whereas India has for quite a while. And we all know how important stable food prices mean to a developing nation.

 

[tony4562]

Time has come for this bubble to burst. All G20 needs to do is to pin that bubble.

Yes, if every country in the world were to stop trading with China, China would be in deep deep trouble, but then how likely this scenario really is? Mr.Hu just paid a visit to France and was received with highest honour by Sarcozy who in return got a sweet deal from China writh tens of billions. Then couple days late Cameron touched down in Beijing along with a huge trade delegation. These day's China's economy is so intertwined with others that any attempt to sabotage China's economy would garantee to backfire.