Ugly Currencies

“If you listen to the Chinese, they have one interpretation of what is going on. If you listen to the Americans, they have another” Pravin Gordhan, South Africa's Finance Minister (FT. LINK)





This is what happens when the debtor (U.S) and the creditor (China) disagree on the financial policies (devaluation of the Dollar) of debtor.

I think we are set for a long period of weak dollar and strong Yuan. Eventually, China can not resist the weight of the U.S and the E.U combined on this issue. But it will not happen at once as the they wish. but perhaps gradual revaluation of the Yuan.

and what does that mean for the G.C.C? More expensive Chinese products as the GCC countries keep their peg to the dollar.

Interesting that No one GCC Minister has brought this subject up ....yet at least!!