Axel Merk and Nick Reece of Merk funds have some good thoughts in their latest newsletter:
"American consumers (and Chinese exporters) have been subsidized by the artificially weak Chinese currency, to the detriment of Chinese consumers who have faced stunted purchasing power. However, we believe this dynamic will continue to change and suggest that a stronger RMB is very likely not only on Bernanke, Obama, and Romney’s wish list, but increasingly in China’s own interest. That would mean the tables getting turned on the American consumer." Source: Merk Funds
Read the Newsletter here:
Keywords: Currencies, Exchange Rates, Renminbi, RMB, US Dollar