This episode of Fast Money aired on Jan 22, 2010. How ignorant and stupid can a financial commentator be? Peter Schiff shows us the way once again in this interview, displaying the pinnacle of ignorance and stupidity with his comments about the RMB and carry trade while Tim Seymour can only laugh and shake his head in derision. Point 1. The RMB is not even fully convertible. Therefore, the carry trade is essentially limited to individuals or businesses that conduct trade with or in China of some kind. In Hong Kong, banks or interbank brokers such as ICAP, Tradition offer facilites such as NDFs (Non Deliverable Forwards) for these purposes. Point 2. Contrary to what Schiff says, in this carry trade scenario, people are not dumping the dollar in favor of the RMB. In fact, its completely reverse - Chinese companies are using this opportunity to issue US dollar denominated debt to finance their overseas acquisitions, strengthening the dollar. From FT "According to The China Daily News, China National Petroleum Corp., the Red Dragon's biggest oil company, is planning to issue $3 billion in dollar-denominated bonds and is planning to auction as much as an additional $1 billion in three-year floating debt, whose rate will be tied to the London Interbank Offered Rate (LIBOR). Traders familiar with the new market suggest that CNPC will probably pay a coupon of 60 basis points to 80 basis points (0.60% to 0.80%) more than six-month LIBOR -- a much lower cost than the 2.8% coupon <b>...</b>