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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (424873)	7/9/2003 5:12:01 PM
From: sea_biscuit	Respond to of 769670

So you are saying that accounting rules are lax? When compared to WHAT other country?!

To: DMaA who wrote (424873)	7/9/2003 5:26:58 PM
From: DuckTapeSunroof	Respond to of 769670

Yes, their banks are just as bankrupt as Japan's (but have you seen Fannie Mae's and Feddie Mac's leverage yet?) But the problems with their banks (much like Japan, they have been 'encouraged' to loan money to failed and failing, mostly state-owned, enterprises) don't negate the argument that their currency is maintained at an artificially low exchange rate: China has the largest trade surplus in the World (whereas we have the largest trade DEFICIT in the World), and is the World's lowest-cost locale for manufacturing. China also has the second largest cash horde of dollars (after Japan) outside of the United States, and they may want to spend that down before allowing a currency float - so they don't take such a big hit on their dollar holdings. That could be a signal for the unshackling of their currency.