To: Toddsterpatriot
A $700 billion dollar trade deficit would make the dollar sink, but the Chinese purchase of $195 billion made it go up instead. In order to lower the exchange rate of yuan China needs to print more money and to purchase dollars. So the Chinese cost of acquiring huge dollar reserve will equal the cost of printing new yuans.
163 posted on
04/26/2006 7:27:27 PM PDT by
A. Pole
(Solzhenitsyn:"Live Not By Lies" www.columbia.edu/cu/augustine/ arch/solzhenitsyn/livenotbylies.html)
To: A. Pole
In order to lower the exchange rate of yuan China needs to print more money and to purchase dollars. So the Chinese cost of acquiring huge dollar reserve will equal the cost of printing new yuans.Great. What does that have to do with the price of tea in China? What's your point?
164 posted on
04/27/2006 5:37:46 AM PDT by
Toddsterpatriot
(Why are protectionists so bad at math?)
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