Posted on 11/24/2004 8:27:59 AM PST by Willie Green
It is a mistaken notion that if the Chinese allowed their currency to float against the dollar that their currency would purchase more dollars.
A true float would include an international contemplation of their banking situation.
It is well known that over half of all Chinese bank loans are non performing. They are functionally bankrupt.
The fact is, their currency would drop dramatically in value against the dollar if they allowed it to float.
They will stay pegged and enjoy the false valuation they currently have for the foreseeable future.
Too true. Socialize the cost, privatize the profit.
Smith was what you could call a "conservative." But if you read WON carefully, you'll see he even calls for gov't intervention to smooth out the humps and bumps of capitalism.
It's an excellent night stand book. And yes, Himmelfarb is correct in that. People have just linked capitalism/democracy/America so tightly in their thought processes, they forget that each are individual things with their own characteristics
Sounds like Dubya has an opportunity for another S&L bailout.
Excerpted and condensed from:
Of Restraints upon the Importation from Foreign Countries
of such Goods as can be produced at Home
"There seem, however, to be two cases in which it will generally be advantageous to lay some burden upon foreign for the encouragement of domestic industry...
- The first is, when some particular sort of industry is necessary for the defence of the country....
- The second case, in which it will generally be advantageous to lay some burden upon foreign for the encouragement of domestic industry is, when some tax is imposed at home upon the produce of the latter. In this case, it seems reasonable that an equal tax should be imposed upon the like produce of the former....
Good catch...I'm impressed.
I've read somewhere that China must float their currency by 2006 in order to retain their membership in the WTO.
Post the stuff after the ellipsis, Willie.
V.I. Lenin
April 1971
Newspapers throughout the world are reporting the great "thaw " in relations between China and the outside world, particularly the United States. The pressure is mounting on Australia, with the maximum being extracted over the failure of Australia to sell wheat to Red China. History appears to be about to repeat itself again. Lenin will be vindicated again in his assessment of the "decadent West" and once again the technical and industrial superiority of the western nations is to be made available to prop up the economy of another communist economy. Not that Red China has been without western aid hitherto, but now the floodgates are to be opened.
If the history of the Soviet is examined it will be seen that at various times it was massive injections of aid and trade from the West that stopped certain collapse taking place. Mr. Nixon is about to "recognise" Red China. President Roosevelt nearly 40 years ago was persuaded to recognise the Soviet Union as a means of solving economic problems caused by the great depression in America and at the same time, rescuing the ineffectual Soviet economy. The Soviet at that time badly needed economic blood transfusions just as the Chinese do today.
No Communist system of slavery can deliver the goods to compete with a free enterprise system. Additionally Mr. Nixon is committed to winding up the Vietnam War. A major outlet for the American economy, already in a desperate situation, will be closed off. Another must be found. With other Western nations already scrambling for the Chinese market and Mr. Nixon committed in his own words to "Keynesian economics", Red China offers the greatest potential market for America to continue dissipating, along with other Western nations, their natural and real wealth. It is wonderful what modern education can do.
Look at the title:
"China to U.S. on Currency Revaluation: Drop Dead"
And look at the comment made by the Deputy Govenor:
"I think [currency flexibility] probably needs a couple of years. China is not providing a time frame. We don't know what the time frame will be."
How did the author, Alan Tonelson, come up with such an inflammatory interpretation of what the Deputy Governor of China had to say?! He (Tonelson) clearly wants to inflame US China relations and take normal disagreements between major trading nations and make them out to be significantly more contentious than they really are.
The anti-China sentiment has clearly taken on a life of its own. One could even say there's a certain tone of political correctness to it.
Because the Deputy Governor's procrastination came a mere day after the Governor claimed it was a "top priority".
Chinese doubletalk for "Drop Dead".
Sometimes necessary, lest you have to deal with the constant yipping of the not-so-smart-a**es.
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