Sunday, May 31, 2009

US and China eye economic co-ordination

Brian Murray

Representatives from the United States and China are meeting in order to align economic interests in this financial hardship. The US and China will be discussing exit strategies from this crisis. The Federal Reserve feels that the rise in yields are part of the normalization process and are monitoring this activity closely. More importantly,China is concerned with the $1,400 bn in assets and the security of our fiscal policy. The tricky part of these negotiations is setting short term policies that can be easily converted into long term plannings.

When China and the US discuss exit strategies, important facts are omitted. As a primary financial investment rule: High Risk, High Return. The United States and China working out exit strategies implies they wish to seek a high return following these current financial situations.

http://www.ft.com/cms/s/0/e9fa69c0-4e09-11de-a0a1-00144feabdc0.html?nclick_check=1

No comments: