Declan Murphy <declan_murphy@hotmail.com> wrote:
> On Oct 19, 10:45?pm, mtfes...@netMAPSONscape.net wrote:
> > Declan Murphy <declan_mur...@hotmail.com> wrote:
> > > On Oct 19, 12:34?pm, mtfes...@netMAPSONscape.net wrote:
> > > > > Why would the PBC want to or need to float? The yuan isn't a reserve
> > > > > currency, or even a major traded currency, and isn't likely to be for
> > > > > about a generation. They won't even need to think about a dirty float
> > > > > or banded ERM for another 15 years or so.
> >
> > > > So what other currencies did you have in mind? Yen? Rupees? Sparkly dust?
> > > I kinda like the sound of sparkly dust as a future currency unit.
> > > Rupees won't be used as a reserve for the same reasons as the yuan. My
> > > guess is a mix of USD$, Euro, Sterling and Yen will act as reserve,

> > Japanese have been noticably reticent about using the Yen in this fashion.

> Japan doesn't have any choice about the matter. The yen is already
> used as a minor reserve especially by east Asian countries. There are

Control of monetary supply is something they take seriously.

But if minor reserves are what you're looking at, there are far more
than 3-4 already.

> > Not sure the pound has the international appeal anymore.

> > > treasuries will need to be priced at least 25-50 basis points higher
> > > than would otherwise be the case due to exchange rate risk associated
> > > with gradual depreciation as the US Fed inflates away some of the
> > > debt. My other guess is that I will need to learn more about
> > > Californian wine.
> >
> > Comes in red, white, and pink.
> >
> > What else do you need to know?

> I think I'll be concentrating on the reds at this stage.

California's famous for Pinots and Zinfandels, but I prefer Cabs and 
especially Merlots.

Mike