<<who would they have been selling to in order to generate that reform>>
... made the value proposition attractive and customers show up - you really ought to give the free market a chance - team usa can buy from anywhere, but best buy, per free market, says china.
<<authoritarian/totalitarian regimes>>
... while lables are convenient, they stop the thinking process. btw, is singapore authoritarian/totalitarian? is mexico a democracy? if forced to choose, where would you make hoime in exile?
<<But if the US wasn't buying stuff from China and keeping several hundred million Chinese employed, what would be the situation?>>
... usa would either go socks-less or pay usd 100 per pack of 7 across the board? you seem to believe manufacturing is just about making stuff, and if so, you are of course wrong.
<<What if we had focused on buying stuff from other countries, including Latin America?>>
... yeup, predictable, i thought as little, there you go, believing anything can be bought from anywhere in any volume. news, the usa does buy from latin america. no one forces the usa to buy from china. people are trying to force usa to refrain to buy from china. get with the program.
<<So don't have any illusions about Chinese prosperity when it primarily comes from enormous trade surpluses and Bejing arbitrarily pegging it's currency to it's primary target market>>
... i find it simultaneously amazing and amusing that you obviously believe that one piece of paper can be deemed to worth more or less than another piece of paper of about equal size.
<<If you feel so confident in your leadership, let the Yuan float on global currency markets as the USD does.>>
... news to you, the rmb does float just as the usd does, about % to basis point, on the global currency markets, just not against the usd. one could say that the usd is pegged to the rmb ;0)
<<[germany ... japan] ... What country has been the primary export market for those two economies since WWII? Who spent huge sums of money to rebuild their economies after the devastation of that war? Who has provided fundamental military subsidization since that time in order to preserve their sovereignty against hostile nations?>>
... listen and understand, mexico also primarily exported to the usa, and mexico did not do a japan or manage a germany. i.e. it has less to do with the destination market, and everything to do with the home policies.
<<We wanted allies, so we opened our markets to their goods.>>
... listen, you bought, of free will, of goods you thought were worthy, else even if your govt bought, you the consumer would not have. iow, the usa did not buy japanese and german goods; the people of usa did.
<<And now you've all loaned us trillions of dollars and you're upset because we're devaluing the USD to reflect our level of indebtedness (despite the fact that bond yields are near historical lows)?>>
... upset? upset how?? devalue against what??? rmb???? no, not until someone else is tee-up to go down with you.
<<Borrow $10,000 from a bank and not be able to pay it back, you have a problem...
Borrow $1 million from a bank and not be able to pay it back, THE BANK has a problem.>>
... so, you amazingly think and amusingly believe that china has a problem?!
<<freedom hong kong is considering repegging to something other than basket of usd.
Why aren't you pegging to the Yuan?.. Wink, wink, nudge, nudge.. >>
... hkd IS PEGGED TO THE YUAN, via the peg to the USD. why is that so difficult for you to understand, the mathematical relationship of USD 1.00 = RMB 6.20 = HKD 7.75 ?
in the mean time, per stratfor, that which thinks devaluation is 'victory', just as you seem to,
i quote
Dispatch: Currency War and the G-20
November 10, 2010 | 2018 GMT
Click on image below to watch video:
Analyst Peter Zeihan examines the potential for currency war between the United States and China and what is expected to emerge from the G-20 summit.
Editor’s Note: Transcripts are generated using speech-recognition technology. Therefore, STRATFOR cannot guarantee their complete accuracy.
The G-20 summit begins in Seoul, South Korea on Thursday. The topic of the day is currency appreciation, manipulation in the ongoing global economic issues. Every state is coming with their own plan but really there’s only two that matter.
The first is the United States. The United States is the world’s largest importer, the holder of the global currency, it’s the largest economy by a factor of three, and that has actually been this state of affairs in now going back to at least World War II. The United States has been large and in charge for that long, and none of the tools the United States has for manipulating its economic system and therefore the globe have changed. The kicker is the United States only depends on international trade for about 15% of its GDP. So should the United States manipulate the dollar to achieve any of its economic aims, it will be the country that suffers the least as a consequence from any sort of international chaos that follows.
The last time the United States did this was in 1985. The agreement that was signed was called the Plaza Accords, and in it the United States threatened Germany and Japan with retaliatory tariffs unless they purposefully, deliberately over the course of several years steadily change the exchange rate of their currencies versus the dollar. Japan and Germany - two major global event powers - caved.
Country number two is China. China is if anything actually more vulnerable to American currency manipulation than either Germany or Japan was in 1985. It’s much more dependent on exports, its capital structure is much less flexible and more vulnerable to outside intervention. The United States could easily quite easily crush China currency war if push came to shove. However, the Chinese have influence in the international system that the U.S. needs right now. The United States is trying to prevent conflicts in Iraq and Afghanistan from spinning out of control. It needs Chinese influence in Iran in order to make sanctions there work, and it certainly doesn’t want problems in North Korea just to top everything off.
So the most likely outcome from the G-20 summit is some sort of American-Chinese partnership on currency issues that does not require the Chinese to actually do very much. To have those two powers on the same page, there is really nothing else than anyone else in the world can do about it. So it looks like the two of them are edging toward some sort of compromise that doesn’t require a lot of actual action and to revisit this issue in 6-12 months. |
