Rickards: China is "The Greatest Bubble in History"

in Debt economy Gold GOld juniors Gold Market by admin — March 18, 2010 9:37 am | no comments

� � According to an official with the China Council for the Promotion of International Trade yesterday, a rise in the yuan would be a disaster for Chinese exporters. “If the yuan rises, these companies will face the immediate risk of going bust as their profit margin is already very narrow,” said Zhang Wei, vice-chairman of the association,”So for these companies, the consequences would be disastrous.” And therein lies the rub, especially as Washington pressures Beijing to let the yuan appreciate threatening tariffs in the absence of action. Its Chinese jobs vs. American jobs as the advantages of China’s mercantilist policies reveal a tilted playing field. And while some insist that China is holding all of the cards in this game, I’m not one of them. Of course, how all of this acrimony ends is anyone’s guess. In the short, though, it sure does seem to have the making of a trade war. Meanwhile, James Rickards, former general counsel for Long-Term Capital Management, joined James Chanos and Kenneth Rogoff calling China one of histories biggest bubbles. From Bloomberg by Bei Hu entitled: China in Midst of ‘Greatest Bubble in History,’ Rickards Says “China is in the midst of “the greatest bubble in history,” said James Rickards, former general counsel of hedge fund Long-Term Capital Management LP. The Chinese