[Cringing Negativism Network]

The Yuan is not free traded.

The exchange rate is very carefully controlled by the government of China. At the moment it is approximately 8.03 to the dollar. That was "freed" from its previous peg among a blizzard of publicity some time ago, but is no more a free exchange rate than it was before.

The only change has been, it is now pegged to a basket of currencies, rather than just the dollar. The Chinese government still decides secretly what the basket is - and changes it very, very, very slowly.

Please stop dreaming about China. Be realistic at least.

We are being played.

[jec41]

We are being played. decides secretly what the basket is - and changes it very, very, very slowly.

BS somebody is playing you. Every banker and every trader knows what the basket of currencies are and at the moment Asian countries are meeting to consider adopting a single currency for the Asian Pacific countries, Japan, S. Korea, Taiwan, and Indonesia. the Yuan is most favored. I made some money on the Yuan when it was revalued. What they want is the Yuan pegged to the dollar at a higher rate. Both the dollar and Yuan are freely traded. You can buy as many as you want. Every countries decides what their currency is based on and is then approved by the world bank.

[buglemanster]

The Yuan is not free traded. The exchange rate is very carefully controlled by the government of China.

You forgot one point. The Yuan is pegged to the dollar (although less so now than a year ago). In a sense, the Yuan IS the dollar. When the dollar appreciates, so does the Yuan (in exact amounts), and likewise when the dollar depreciates. It is the equivalent of having a single currency in a free trade area, like the Euro in Western Europe and the American dollar in the United States. Do you honestly think the purchasing power of the USD is the same throughout the 50 American states? No way. This whole Yuan revaluation talk is a smokescreen, it has little economic merit. The Chinese aren't slave labors, they are free labors (albeit very cheap), and they are better off with their present wages than toiling in the farms.