Huge debt levels in the US means a revaluation strengthening of the Yuan is unlikely to help America says Marc Faber, the famously bearish author of the famous Gloom, Doom and Boom Report. He was speaking on the last day of the Beijing CLSA China forum.
Interest payments on US debt held by foreigners already amount to almost 1.2% of GDP he noted. But this could double if the government is forced to put up interest rates to guard against inflation produced by more pricey Chinese imports. Import price inflation will be all the more serious if the dollar continues to weaken over the long term, as Faber believes it will....
