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To: WashingtonSource
It goes back to China's REFUSAL to purchase our exports. They still have "most favored nation trading status". We buy "their stuff"; but they don't buy ours. Plus, there's not much room whatsoever for Chinese citizens to purchase/invest on the open market. The government run banks decide WHERE and HOW savings must be directed. Ergo, as the dollar falls (as it was foretold, so the US can move their exports); China feels the competitive heat on a tri-fold level, the third being, will Chinese citizens revolt and stage fury if the government investments decline, ability to sell their own exports rises?

You are right about the European central market. A Cabal to bring down the dollar? No. It's called "planned economy".

Milton Friedman, for one, has proven that inflation is largely a myth. And it is a myth created by those who like to invent hysterical reactionism as a means to "persuade" the investor.

I have happily noticed that our budget deficit has declined; and this ultimately means that while we are moving our exports, our dollar is long-term much stronger.

41 posted on 11/29/2006 6:59:43 PM PST by Alia
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To: Alia
It goes back to China's REFUSAL to purchase our exports. They still have "most favored nation trading status". We buy "their stuff"; but they don't buy ours.

It all returns to the structure of the Chinese economy.

"It's my understanding that about 60 percent of China's exports are coming from foreign invested companies rather than Chinese companies."
(Page 28-congressional hearing...)

We are buying a lot of our own exports from China.

51 posted on 11/29/2006 7:21:36 PM PST by maui_hawaii (kamakazees only do it once)
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To: Alia
It goes back to China's REFUSAL to purchase our exports.

Exactly what do we export that china is refusing to buy ?

78 posted on 11/29/2006 9:41:32 PM PST by staytrue
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