The State Controlled Media is touting the Communists again!
Posted on 02/08/2011 7:10:37 AM PST by SeekAndFind
In the middle of last month, the Bank of China quietly announced a startling new bank account available to America citizens. At one of three Bank of China branches in the United States–two in New York and one in Los Angeles–an American can walk in, open an account and convert their grubby dollars into the currency of the hottest, and arguably the most important, economy in the world, the Chinese renminbi.
To get a better sense of what this is all about, I went to the Bank of China's main branch in Manhattan on 5th Avenue and 48th Street. The branch office is fairly ornate and staid, a study in 1950s elegance. The staff couldn't have been more welcoming, and I was ushered over to a young Chinese-American who walked me through the account process and answered all my questions. The biggest of which was this: Why would anyone do this?
Now, the Chinese renminbi or RMB (the “People's Money”, often referred to as the yuan) has been much maligned in the United States for its low valuation and its harmful effect on the American economy. Official Washington, from President Obama to much of the Congress, have criticized the Chinese government for maintaining an artificially low valuation and purportedly giving Chinese companies an unfair competitive advantage and accelerating the loss of American manufacturing jobs.
The passions stirred are real – and China has reacted to U.S. criticism with its own nationalistic defense, seeing in American attitudes one more example of the West trying to hold China back. But the reality is more ambiguous, especially given that China has been allowing its currency to appreciate after a two-year freeze during the financial crisis and that the U.S. has been shedding manufacturing jobs for decades, long before the current rise of China.
(Excerpt) Read more at curiouscapitalist.blogs.time.com ...
“Should You Put Your Savings in a Chinese Bank Account?”
That’s a funny headline to read!!!
Of course the answer is no. Not just no; but heck no.
So, what rates are they offering?
If you have a mortgage with HFC, Beneficial or credit cards from HSBC you are a debtor to the Hong Kong Shanghai Bank Co.
I can see several immediate flaws in this concept:
1. What is the point of converting U.S. currency into a foreign currency that is pegged to the U.S. dollar?
2. What is the point of converting U.S. currency into the currency of a foreign country that is run by a totalitarian Communist government?
3. Related to #2 . . . If the foreign currency is de-linked from the U.S. dollar sometime down the road and appreciates in value considerably, what assurances does an American bank depositor have that they'd be able to "repatriate" their money by converting it back to U.S. dollars at a better exchange rate?
The State Controlled Media is touting the Communists again!
/johnny
HSBC is a British bank.
With good reason: Chinese banks are way more leveraged than any US bank--one wrong move and the entire Chinese banking industry collapses like a house of cards.
they’d be able to “repatriate” their money by converting it back to U.S. dollars at a better exchange rate?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~`
it’s currency. Currencies are converted every day all day. sheesh. That’s not going to stop just because the yuan decides to let it’s currency value fluctuate relative to the dollar.
The US dollar is going down. at some point the yuan MUST de-peg to the US dollar.
So the answer to your silly question...the point is the yuan is soon going to be a better currency than the US dollar is...if current trends continue.
Do Chinese banks comply with the IRS reporting requirements. If not, then it is worth it to have a Chinese account since nowadays no one else will open an account for an American.
American 0.6%..Chinese businessman with Chinese Military Connection who votes Democratic and vows to vote for Odumbo in 2012....maybe 1.9%
I trust the PRC bank as much as I trust Obama.
Time at is again promoting anything it can to destroy America.
Correct. The IRS has made it impossible for Americans to bank overseas, even with American banks.
The enemy is not the Chinese. It is the US government. Fix our enemy and America will have nothing to worry about from the Chinese. They are not remotely our equals without our own government trying to destroy our competitiveness.
"“Well, if the rate on your savings or money market account is barely zero percent and if the Chinese currency appreciates between 3% and 5% a year as it is expected to, then you can have a savings account at the Bank of China that yields you much more than any equivalent domestic American savings account with the same FDIC protection.”
So there you have it: the Bank of China has created a savings account for Americans that has a strong likelihood of significantly outperforming a U.S. savings account. The Chinese have been making cars, solar panels, electronics and furniture that outcompete American alternatives; now they are creating better bank accounts?"
Could be a pretty nice return.
I've worked with engineering firms that do business all over Southeast Asia. The first rule of thumb in my industry is that for projects in many countries you really want to work on major projects that are financed by the World Bank -- because that way you'll get paid in U.S. dollars. If that's not possible, then Plan B is to try and work out a deal where you get paid in rare local art or artifacts which can then be sold for U.S. dollars through international brokers. None of this is a joke, BTW. India used to be known as a very difficult place to convert currency, though I'm sure this has changed in recent years as that country has become a more prominent player on the international stage.
Do you think foreign contractors in Iraq are going to be getting paid in anything but U.S. dollars for the next 30+ years?
The yuan is not properly floated so it is impossible to ascertain it’s strength relative to other currencies.
2. What is the point of converting U.S. currency into the currency of a foreign country that is run by a totalitarian Communist government?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.