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Wednesday, June 22, 2011 Greece parliament passes critical confidence vote; all 155 members of the ruling

Socialist Party expressed support for the government (this was a bit more than anticipated as there had been some reports of defections in the last few days). NYT Some Hedge Funds betting on collapse in currency, while many think further appreciation coming; some investors feel "Chins's economy is a bubble waiting to burst....officials may look to eventually cheapen currency to help stimulate exports"; given the magnitude of Chinas credit problems, its at least a possibility that the yuan drops sharply WSJ

From July 2005 to July 2008 the Chinese Yuan (CNY) appreciated 21.5% versus the dollar. Chinese authorities paused the revaluation during the crisis and resumed it about a year ago. The transition toward increased domestic consumption is not easy or smooth, particularly as signs of inflation continue unabated. Even the Chinese economy is subject to a business cycle. Although the Biden talks remain fluid, the White House and House Republicans have expressed increased optimism they will be able to reach an agreement soon WSJ US money market funds US lawmakers and regulators are growing increasingly concerned about the amount of European bank debt owned by US money market funds. In aggregate, the funds hold ~$1T worth of Eurozone financial paper and regulators are worried about the impact a Greek default would have on this market. According to the WSJ, some SEC officials are worried about the Fed is monitoring developments closely. The House will hold hearings Fri on the subject. WSJ The FOMC will release its statement at 12:30 p.m. in Washington, and Chairman Bernanke is scheduled to meet the press at 2:15 p.m. The meeting is the last one before Aug. 2, when the Treasury Department will no longer be able to borrow to finance government operations unless lawmakers raise the $14.3 trillion debt ceiling. Bloomberg Obama Afghanistan speech Wed night 8pmET; according to Politico, Obama is expected to announce his intention to withdraw 33,000 U.S. troops sent to Afghanistan as part of a surge in U.S. forces by the end of 2012, with at least 5,000 personnel due to leave by the end of this year Politico