Bernanke intended to RMB.

<P> Recently criticized Fed (U.S. Federal Reserve Chairman) Ben Bernanke to many people, mainly Americans. .Fed is expected to be in the market on November 3 meeting since the financial crisis, announced the launch of the second round of "quantitative easing" action, action goal may be purchased in the next few months, hundreds of billions of dollars of U.S. Treasury bonds. .</ P> <P> the second round of "quantitative easing" the logic is that by large quantities of bonds, so bond yields fell, the dollar depreciation on the stock and commodity prices high risk assets. .This logic has been the first round of "quantitative easing" policy implementation experience has shown. .At that time, the Fed plans to buy bonds in November 2008 after the publication of the first 12 months, the stock market rose 29.5%, gold prices rose 44.5%, high-yield bond prices rose 16.6%, while the dollar fell 12.6%. .</ P> <P> but the passage of time, professionals do not believe Bernanke trick then again who is willing to re-applied. .U.S. interest rates strategy at Nomura Securities analysis, a new round of "quantitative easing" may have been the full impact of the current market price of digestion. .More and more evidence that the Fed will be the implementation of "quantitative easing" policy, but the 10-year U.S. Treasury yields have stopped declining, and other asset prices have already rebounded. .Since the end of August since the Dow Jones industrial average rose 11.3%, 11.2% increase in oil prices, gold prices rose 7.6%. .</ P> <P> Therefore, the "quantitative easing" has not been started within the Fed that is being strongly questioned. .Kansas City Federal Reserve Bank of ThomasHoenig said this is the deal with the devil. .Minneapolis, Dallas and Philadelphia Federal Reserve Bank where the three also expressed doubts. .Three of them in the Fed policy-making departments - FOMC (Federal Open Market Committee) share of votes. .Fed a total of 12 regional Federal Reserve Bank, FOMC voting seats in five of them in each rotation (New York is a permanent voting seat). .</ P> <P> I suspect that Bernanke will not see this "quantitative easing" of failure possible? .U.S. unemployment rate so high, the inflation rate continued to decline, which is "quantitative easing" can not be changed. .I think that Bernanke is more weight to the "quantitative easing", another significant consequence - the falling dollar. .Typically, interest rates relative to the currency of the country stable or increased interest rates will devalue the national currency. .Look dollars. .Since Bernanke's speech, the second "quantitative easing" appearance since the U.S. dollar against six currencies, including a basket of currencies has fallen by 6.6%. .Meanwhile, short the dollar are also increasing. .According to the U.S. Commodity Futures Trading Commission data, September 14 hedge funds and other speculative investors to short the dollar bet 136 billion dollars, to 12 October more than doubled, reaching 29 billion U.S. dollars, close to the record in 2007 .365 billion U.S. dollars. .</ P> <P> the dollar, against other currencies is not good news. .When the dollar against the yen, Australian dollar, Singapore dollar and Thai baht fell, after the four economies also will be difficult to increase exports. .RMB then? .Perhaps, Bernanke did not put on the table this is the real target. .Fed's second "quantitative easing" is basically the yuan Pushed to the wall. .As the yuan pegged to a basket of currencies, the dollar component of very heavy, so when the dollar depreciated, not only the U.S. economy, China must be prepared to face the economic reflation. .If Beijing's attempts to keep the RMB exchange rate stable, sit back and watch inflation rise, then Chinese exports will rise in commodity prices; if Beijing tries to yuan appreciation to curb inflation, China's export commodity prices will still rise. .So, Bernanke to help complete the task Geithner: the real appreciation of the RMB against the U.S. dollar. .</ P> <P> at the moment, Beijing should pay close attention to Fed bond purchase plan on the real impact of the yuan. ."People's Daily" overseas edition of the commentary that the exchange rate war. .National Bureau of Statistics of China International Center for the latest research report, China is expected exchange rate for some time will face war. .This is a clear reminder and a veiled warning to Beijing, Washington and New York, but also to investors. .</ P>.