China launches currency shake-up

BBC ^ | July 21, 2005 | BBC

[CaptIsaacDavis]

China launches currency shake-up

China has revalued its currency, the yuan, for the first time in a decade - a move welcomed by the US, a long-time critic of its exchange-rate policy. The reform is being seen as the first step towards the liberalisation of China's tightly controlled currency. The yuan will no longer be pegged to the dollar, but will float against a basket of currencies. It will also appreciate against the dollar, mollifying critics who say a cheap yuan has helped Chinese exports. "I welcome China's announcement today that it is adopting a more flexible exchange rate regime," said US Treasury Secretary John Snow in a statement.

EXCERPT

[CaptIsaacDavis]

OK, THEY CONCEDED ONE SMALL STEP -- TARGET AND WAL-MART GOT POUNDED TODAY ON THE STOCK MARKET FOR BEING LITTLE MORE THAN DISTRIBUTORS FOR CHINA (AND IMPORTING THE PRICE/COST BENEFITS OF SOCIALIST SLAVERY). SOME COMMENTATORS CLAIM THE CURRENCY IS OVERVALUED BY 40-50%. HAH HAH HAH. THEY SAID THE SAME GARBAGE WHEN RUSSIA FLOATED THE RUBLE. IT WENT FROM CIRCA 1:1 VS. THE USD IN THE 1980S TO 6 TO MORE THAN 3,000r/$ IN A VERY SHORT TIME. CHINA'S NEW "FLOATING PEG" IS GOING TO START AT CIRCA 8.11 TO THE $. THE TRUE "FREE MARKET" RATE WOULD BE AS STEEP A CLIMB AS RUSSIA SAW - THAT IS THE EFFECTIVE COST TO AMERICANS OF TRADING WITH COMMUNIST SLAVERS.

[Admin Moderator]

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[montag813]

Short WalMart. They will be hammered. And say goodbye to those 99-cent stores. Also say hello to inflation until we replace china with cheaper labor with places like Vietnam and Gabon.

[Dead Dog]

Prices for crap didn't go down when they offshored, they probably won't go up much when the re-offshore.

[montag813]

85% of WalMart's footwear is imported from China.

[headsonpikes]

GODDAM CHINESE HOGGING ALL THE LOWER-CASE LETTERS, ALSO!!!

[RegulatorCountry]

"Also say hello to inflation until we replace china with cheaper labor"

Oh well, that should help shore up real estate prices. Look on the bright side.

[SandfleaCSC]

Snort, snigger, and excetra.