Jyske Bank's overnight briefing on Wednesday May 11, 2005
showed that international investments in China may make sense
because this nation is technically ready for currency reform.
International Investments Warning
International investments are not always easy to judge
because the analysis pointed out that China won't be pushed
into the revaluation by the United States . The Chinese deputy
central bank governor Wu Xiaoling expressed their determination
to contro, their own currency affairs in the Japanese press.
Wu criticized the United States for pressuring China on the
currency issue, in particular by trying to pass a bill that
would impose tariffs on Chinese imports unless the currency
reforms were carried out.
You can read Jyske's
entire international investments analysis here.
This creates a great political and economic clash on both
sides of the Pacific. The U.S. wants to reduce the US trade
deficit. The US is buying way more Chinese goods than the
Chinese are buying US goods. This pushes the US dollar down
and hurts US manufacturing jobs. The US wants a stronger yuan
to slow down the flood of Chinese goods.
China on the other hand recognizes that economic growth
is vital to its current stability. This huge nation has unleashed
capitalism and could be devastated if the growing expectations
of its populace are suddenly dashed by a recession.
Learn about international
investments in China
But the point
I want share here is the vital point about how fast global
and international investments can change. Learn
International Investments Thought
Just ten years ago the Yuan was at the end of a 13 year
slide in which it had dropped from 1.5 yuan to 7.5 yuan per
US dollar. You can see an excellent 30
year history of the yuan
When you look at international investments to spread your
wealth keep this in mind.