Asking Much of China

Pete Fisher,a Vice-President at BlackRock,the world's largest money manager,thinks we're getting to the point where China has to tighten their policy.He fears we'll have more friction,but he's hoping we won't.He's worried about too much hype.We can over-hype how much we can get out of Chinese exchange rate hikes when they do occur.It would cool down their economy.We don't want China to have inflation or a bubble.
What a revaluation of the yuan may not do is affect our trade relations,Mr.Fisher points out.It's terrific for the world economy for China to have cerated all this wealth over the past 20 years.We've got to be careful not to expect too much from what they've accomplished.
BlackRock isn't afraid of the long end in bonds.Mr.Fisher believes the economy is gonna do O.K.,but not brilliantly.BlackRock thinks if the economy is gonna do O.K.,that's gonna mean a sideways movement in interest rates,attractive to investors at the long end.Some analysts have been warning investors that the long bond will collapse under inflationary pressure.