Monday, December 1, 2008

Yuan Falls Most Since End of Currency Link Before Paulson Visit

The Chinese would be wise not to listen to Paulson. Anyway, he lacks any sort of credibility now with his terrible handling of the crisis (flip flopping on this TARP proposal, letting Lehman fail, not using the money he begged Congress for, etc.)

With a big cut in interest rates and a large stimulus coming, the yuan is likely to fall and the Chinese will be happy to do that because they know it will helping their export industries.

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