China will revalue its currency. US securities will be less attractive to Chinese investors who own approximately $900 billion of our debt. Other currencies will become more attractive to Chinese investors - especially the euro.
The trend will be toward higher interest rates on US government securities. Inflation may follow.
3 comments:
devalue or REvalue?
So was this was why Tim Geithner was making all those trips to China? Now it will give wiggle room for the FED to raise rates and get all that mortgage paper off their balance sheet.
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