Posted on 11/16/2007 1:57:35 PM PST by republicpictures
I’d take a wild guess and suppose that most Chinese citizens “eating lunch” don’t have access to an international bank that specializes in currency exchange. Even if they did, is the average Chinese sophisticated enough to exchange dollars and pick the “right” choice - yen, euros, panda gold bullion or tulip bulbs. And what’s the rate exchange cost that the bank charges? (That cost might wipe out any gains made) And does the average chinese citizen have enough dollar cash laying around to make the conversion worthwhile?
I’d just continue eating lunch if I were a Chinese man or woman, and worry more about whether puppy tails are in my Guangdong dumplings.
we have had a fly on China’s walls since dirt was brown.
Thinking out loud, help me out here.
Suppose the Chinese govt finds that exports are slowing and there is increasing competition from low cost providers of goods which are gaining market share (India, Vietnam, etc) and it wants to devalue the currency - but finds that such action is politically difficult.
If China keeps its currency pegged to the dollar or lets it gently float upward, and the dollar is declining in value at a comparable or greater rate, a cheaper Yuan can be achieved with respect to the rest of world. Exports to Europe and rest of world expand and the US buys fewer commodities and products from other countries.
China would also be faced with higher commodity prices but it’s willing to weather that as it has a lot of cash reserves in Euros. Does this seem like a possible scenario?
Could be. Some insourcing has begun.
Dump the products “made in China.”
PING
Back when we were a "manufacturing based economy" what percentage of GDP do you think manufacturing represented?
I guess the Chicoms decided that they don’t appreciate all of the China bashing during the primary debates and have decided to interject a dose of reality into the discussion.
So they don't censor all truthful news?
I don’t think there is a great deal Duncan could do about this if elected President. I still sent a few hundred more to his campaign last month though.
...agreed. But it would be suicidal to elect a leadership in opposition against increasing independence (not isolationism, but enough to survive in tough situations).
The buy/sell spread is about 1%. I was kinda surprised, but there it is. The weird thing is that that stateside buy/sell spread is something like 5%, and we have a lot more banks. I guess most banks stateside don't do a lot of FX transactions, whereas the Chinese ones do.
I won’t. No one talks to me and I perfectly understand why.
I’m with you...
“Since the yuan is pegged to the dollar I don’t think that’s going to help.”
Why am I hearing this stuff about the yuan supposedly being pegged to the dollar? Certainly you are not talking about the RenMinBi (RMB Yuan) of Mainland China. We are in China, and we have personally seen the yuan move as high as only 5.2 to the dollar and as low as 8.4 to the dollar. And it is 7.4 right now. That is not being “pegged.”
It is happening...Are you going to be ready? Are the free traitors and Crapitalists ready?
Maybe they want the people to dump the dollars, so they can grab up more of them.
What’s about to happen is we are about to destroy terrorism in iraq and declare complete victory. The rest of the world is angry and scared that we are so capable in military efforts and are attempting to punish us for it.
When you’re king of the hill, everyone tries to knock you down. It’s much easier to attack the king than it is to be the king.
Not until the Chinese ‘un-peg’ the Yuan from the Dollar.
I’d hate to be living in Taiwan about now.......
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