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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (22435)	1/29/2005 8:59:39 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

--ggg, you can never finish your article. What Huang Ju said consistent with what Zhou Xiaochuan and other Chinese officials said all along. It is completely irresponsible for the US and EU to push China appreciate RMB knowing how bad the Chinese financial sector is. What the US and EU are trying to do to China is the replicate of what they did in the Plaza Accord to Japan. And everyone knows what happened to Japan after that. So China would never ever position themselves in that situation. The problems with China's financial sector include, among others: "the very underdeveloped capital market, too muchreliance on the indirect financing, and irregularities in the operation of security office" ... (quoted from: news.xinhuanet.com These following quote from Chinese officials are quite important: "The world economic imbalance is attributable to many reasons, but not the exchange rate," Li Ruogu, China's deputy central bank governor, told the World Economic Forum. "China has not the capacity to address that so-called imbalance. We are not willing to do it, and we are not able to do it." ... China's central banker Li, however, pointed to no need for an FX move soon. He said there were no signs that China's economy, which grew by over 9 percent last year, was seriously overheating, and went as far as ruling out another increase in official lending rates for the time being. He said any rate rise now would make it more difficult to create enough jobs for the millions of migrant workers and poor farmers moving to China's cities every year. "So far data does not give us strong reasons for further interest rate increases at this point," said Li. The central bank had increased official lending rates modestly last October, the first such move in nearly a decade. "There's a tremendous task to make people have jobs, therefore a certain growth rate is extremely important. Our goal is to keep the economy growing at roughly 8 percent," Li added. ..." reuters.com