Posted on 07/01/2008 11:58:17 PM PDT by TigerLikesRooster
China's premier urges US to stabilise dollar
AFP - Tuesday, July 1
BEIJING (AFP) - - Chinese Premier Wen Jiabao has again called on the United States to stabilise the dollar, warning the greenback's decline was posing threats to the global economy.
"China is taking measures to safeguard its stable economic development," Wen said during a meeting with visiting US Secretary of State Condoleezza Rice on Monday, according to a statement posted on the foreign ministry's website.
"(We) hope the US will overcome its subprime crisis soon and stabilise the exchange rate of the US dollar, which is significant to the whole world," he said, according to the transcript posted late on Monday.
(Excerpt) Read more at malaysia.news.yahoo.com ...
Ping!
its kind of a sad time when I read this. and feel relieved that we still matter.
Yet, the ChiComs love the greenback so much they peg their own yawn to it.
The Communists are so happy with the buck they have horded about $1.8 trillion.
When it comes to capitalism, Uncle Sam sends the state department to talk to the commies.
yitbos
curiously the yen has not risen much in value.
Link: http://finance.yahoo.com/echarts?s=USDJPY=X#symbol=USDJPY=X;range=1y
They’re looking to get out from under the dollar. They’ve let the yuan float a little and see other markets outside the U.S., Africa, for instance.
true but the last time we talked about this the yen was trading about 98. the conversation was in the context of an article about the japanese finance minister who presided over japans real estate melt down in the early 90’s. his comment at the time was that in the 90’s his ministry should have been more proactive rather than doing nothing. he said one of the consequences of japan’s 90’s meltdown was that the japanese kept their currency low vis a vis the dollar. it was his opinion that the yen should be valued about 80 yen to the dollar. but he acknowledged that his was a minority opinion.
it may well be that that the japanese are at the point now where they cannot revalue their currency upward because they have such huge reserves of dollar that such revaluations would set off uncontrollable consequences besides just devaluing their dollar reserves by 20%
If a dollar is basically an IOU, I'm starting to wonder if the US has just left a trail of international creditors holding the bag as we moved from Japan to Taiwan to Korea, and now ultimately to China(?)
Whom shall we scam next? The Martians(?)
The TNX is the bellwether. If bond yields shoot up, we go down.
By managing the rate of deflation, Bernanke hopes to avoid a sudden meltdown in an election year.
“Yet, the ChiComs love the greenback so much they peg their own yawn to it.”
I don’t know how it can be said that the RMB Yuan is pegged to the U.S. Dollar. I have been back in China for two years and have lost almost 20% of my spending power. A 20% loss in exchange rates is not a very good peg.
The Hong Kong Dollar, when I went though there in April looks like a much petter peg. I actually got more HKD for the USD than I did two years ago.
They (Chicom) work and send us cheap goods. Then we pay in Dollars. Then we devalue Dollars. Ha Ha. Inscrutable Chinee know everything (not).
>>>They’re looking to get out from under the dollar.
Sell? Sell to whom?
They should have let their currency float... rather than the 7 % targeted revaluation they have been footsying with for the last 2 years.
Well, they can buy oil with it — buy real estate in the U.S. and Europe, buy scrap metal, build infrastructure in Africa with it, etc. etc.
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