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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: sea_urchin who wrote (22087)12/4/2004 9:29:15 PM
From: The Vet  Read Replies (2) of 81145
 
Searle I can't help but comment on these quotes from the article you posted

"The result of China’s failure to allow its currency to float is that it retains an unfair trading advantage"

...and....

" because China is not playing by the rules, the floating rate system on a global basis is breaking down."

Seems OK on the surface, but when considered, what that really means is that China is playing by exactly the same rules as the US keeping their rates at US levels. If China was actively devaluing their currency, then it could be considered to be unfair. But it is not; it is just playing by the US rules and maintaining its currency at the same level to the US dollar as it always has in recent times. Just because the Chinese are winning the game now, the US wants them to change the rules.

Reminds me of the America's cup....

So what should be said is that the US is trying to cheat all the holders of USD, which they forced on the rest of the world as the world reserve currency to the US's advantage.

China by matching the USD value is simply following the old US rules, but the US wants them to make new ones so that the US can continue the game of cheating the overseas holders of their debt by devaluing the value of that debt without an act of overt default by the US.

Just a new twist on Nixon's act in the 1970's when he cheated by unilaterally dropping the gold standard and scuttling Bretton Woods to the financial advantage of the US and the detriment of everyone else.
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