Borrowing in Yuan and Investing in Buck…

It is no wonder that so many of the so-called economists employed by investment banks and hedge funds keep up constant pressure on central banks, especially Asian ones, to keep rates low. Without that there would be no fuel for the carry trade, which has enriched so many ill-deserving bulge-bracket gamblers and could potentially result in the near-collapse of the global financial system. Although hitherto this game has mainly been played in Japanese yen, the latest currency to join the carry-trade bonanza is the Chinese yuan.

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