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To: Erik Latranyi
If a country imports more than it exports, its currency devalues, which drives the prices of imported goods up.

That is false.

China does not let its currency float. They peg it to the dollar, which keeps their prices artificially low.

This is no longer true. The Yuan is not pegged to the dollar. My wife just returned from a trip to Beijing. The dollar is now worth less. Prices in dollars there have increased there by around 50%. I was expecting to get my usual $50 watch, but now they cost $75.

10 posted on 06/13/2011 6:04:44 AM PDT by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Hoodat

What is the current Yuan / Dollar rate?

How much different is that, than a year ago in percentage terms?

And what were you doing in Beijing? Arranging imports?


11 posted on 06/13/2011 6:08:21 AM PDT by Cringing Negativism Network (BUY AMERICAN. The job you save will be your son's, or your daughter's)
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To: Hoodat

Prices in dollar terms in Beijing do not reflect the exchange rate, because the Yuan does not float based on market conditions - the exchange rate is set by the communist government.

10 years ago the Renminbi exchange rate was around 6.7.

Now the exchange rate is 6.5

Meanwhile the dollar / euro rate has swung back and forth almost 50%.


12 posted on 06/13/2011 6:15:43 AM PDT by Cringing Negativism Network (BUY AMERICAN. The job you save will be your son's, or your daughter's)
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To: Hoodat; Erik Latranyi
RE :"China does not let its currency float. They peg it to the dollar, which keeps their prices artificially low...... This is no longer true. The Yuan is not pegged to the dollar. My wife just returned from a trip to Beijing. The dollar is now worth less. Prices in dollars there have increased there by around 50%. I was expecting to get my usual $50 watch, but now they cost $75."

Thanks, we do need a serious debate on this but we dont need more Trump-isms that are designed just to convince voters that there is another free lunch waiting for us.

Trump-ists ignored the fact that uni-lateral trade tariff's made up by a Trump crackpot would just result in trade sanctions on us killing our exports. The devil is in the details and anything that sounds easy is a sure fraud.

18 posted on 06/13/2011 1:40:14 PM PDT by sickoflibs (If you pay zero Federal income taxes, don't say you are paying your 'fair share')
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