Hello friends, I am venturing into writing mini blogs two topics that I am passionate about - investing and technology. While a number of websites and paid services offer advice, I will try to separate noise from facts and speculation from calculation.
Here are a few glaring imbalances that stand out:
- As per the big Mac index published by the Economist, the Chinese Yuan is undervalued by 40%.
- An interesting fact to note is that China has foreign currency reserves equivalent to $2.4 Trillion dollars
- China owns 732 Billion of the $13 Trillion US national debt.
What would be the outcome of Chinese currency appreciating by even 10% (fueled by US and Euro protests) and US currency depreciating by a few percent (fueled by quantitave easing)? That would certainly be interesting to watch and is going to be one of the fairly certain outcomes of 2011.
Hello friends,
ReplyDeleteI am venturing into writing mini blogs two topics that I am passionate about - investing and technology. While a number of websites and paid services offer advice, I will try to separate noise from facts and speculation from calculation.
Here are a few glaring imbalances that stand out:
- As per the big Mac index published by the Economist, the Chinese Yuan is undervalued by 40%.
- An interesting fact to note is that China has foreign currency reserves equivalent to $2.4 Trillion dollars
- China owns 732 Billion of the $13 Trillion US national debt.
What would be the outcome of Chinese currency appreciating by even 10% (fueled by US and Euro protests) and US currency depreciating by a few percent (fueled by quantitave easing)? That would certainly be interesting to watch and is going to be one of the fairly certain outcomes of 2011.
Bhanu P
MBA, CAIA & tech industry veteran