<<You mean.. permit you to demonstrate your arrogance, right?>>
... if you say so.
<<Listen, the Chinese economy WAS BUILT on exporting to the US and MASSIVE TRADE SURPLUSES.>>
... i heard you, but from where i sit, i know the chinese economy was built by diligent work, genuine reform, true savings, much investment, brilliant leadership
<<And yes, sure we didn't mind Chinese profits being parked here to finance our unsustainable deficit spending and cheap consumer goods.
It's been mutually beneficial, TO AN EXTENT.>>
... do not know anything about what YOU may or may not have done with the borrowings, except to note that as true income has declined and share market has been stagnant over and for past several decade, i would venture to guess that much of the credit had been spent on ventures not meaningful for the long run.
<<We did the same thing with Europe and Japan since WWII. But we can't do it anymore.>>
... you mean europe and japan also underwent "diligent work, genuine reform, true savings, much investment, brilliant leadership"? yes, i suppose they must have.
<<If the Chinese economy didn't depend so heavily on exports to the US, Bejing wouldn't be permitting their Yuan to devalue by pegging it against the USD.>>
... oh, they probably did not know how much the paper was worth anyway, and had the brains to not fuss over its value except to say it is worth x, with x being a straight formulae
<<Countries that run trade deficits SHOULD have their currencies devalue in order to restore trade balances.>>
... be my guest, devalue away until happy
<<Countries profiting from those trade imbalances, who arbitrarily peg their currency to that of their target market are engaging in an act of mercantilism.>>
... mercantilism vs counterfeit money and fraudulent central banking, sounds like a bit of leveling the playing field
<<China has more than 3 times the population of the US. Which means that the average Chinese people only has to consume 1/3 that of the average American to achieve a satisfactory balance of trade.>>
... or team america can consume 66% less on per capita basis to reach same happy balance. by the looks of it all, both sides are moving towards the happy middle, and we only need to wait another 10-12 years, 15 on the outside.
<<Debasing the Yuan to maintain their export advantages is just as reckless as the Fed undertaking QE2.>>
... par for the course, the decoupling shall be done once the fed qe2 through qe n redeems all china credit to usa by way of china selling to fed, and buying japan, korea, etc etc, and japan korea properly tee-up up to hold team usa bag.
else you would be rudely stiffing your creditor of so many good years and that must not be; so japan must be and is set up by team usa and tribe china, for the good of the world, before japan disappears and no longer needs money.
that is what be happening now, mathematically, by fund flow and by population.
<<you don't need to DO IT ANYMORE>>
... speaking of NEED, freedom hong kong is considering repegging to something other than basket of usd. we shall DD (debate and decide), but not before some deserving folks complete the front-run exercise |
