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To: Crimson Ghost who wrote (51020)	1/23/2006 5:41:46 PM
From: shades	Respond to of 110194

While the Bank of Japan cites consumer prices as the benchmark for ending monetary easing, policymakers keep a wary eye on asset prices with memories of the late 80s bubble debacle still fresh in their minds Consumer prices Baby - just like here - as long as we can keep the mainstream happy watching Oprah - they wont get to upset and go make big changes in washington. You would expect a threat of such proportions to elicit an appropriate response by US policymakers. No - the oprah couch potato is a reactionary creature - not proactive one - when he finds he can no longer afford his premium cable and has to turn off oprah - ONLY THEN will he get off his butt and go bother those US policymakers and threaten thier jobs. The present Secretary of the Treasury, John Snow, is fond of quoting Dick Cheney: "deficits don't matter". Alan Greenspan insists the exchange value of the dollar is not the Federal Reserve's responsibility and his successor, Ben S. Bernanke, is best known for threatening to drop dollar bills from helicopters. Mosler says the trade deficit is good for the US - we need to grow it. At the most basic level, Breton Woods II is a short-term vendor-financing scheme, capable of nothing more than buying time, which US policymakers appear intent on squandering. When the people have to turn off oprah, go back to work, and feel like thier life is shitty - they may nominate hitler types that will fight for them against the world - they have gotten use to dunkin donuts and will want it to continue - extreme political regimes will pop up with war mongering militaries - and nena will be looking at blowed up building singing about 99 luftballoons. hehe

To: Crimson Ghost who wrote (51020)	1/23/2006 9:31:00 PM
From: shades	Read Replies (1) \| Respond to of 110194

biz.yahoo.com Press Release Source: China Currency Coalition China's Record Foreign Currency Reserves No Surprise to U.S. Coalition Wednesday January 18, 2:27 pm ET WASHINGTON, Jan. 18 /PRNewswire/ -- China's foreign currency reserves rising 34 percent in 2005 to a record $818.9 billion amid surging exports was no surprise to the China Currency Coalition, according to its counsel David A. Hartquist. A report last Monday by China's central bank noted that reserves rose by $208.9 billion from the end of 2004. At that rate, China's reserves could reach $1 trillion this year. "The China Currency Coalition has had this red flag raised since the coalition's inception more than a year ago," said Hartquist. "The record $819 billion in reserves is the consequence of the substantial undervaluation of China's currency, the yuan, which the coalition and many experts believe should be revalued upward by about 40%. In effect, the Chinese government subsidizes exports by 40% -- violating World Trade Organization (WTO) and International Monetary Fund (IMF) global trading rules -- cheating U.S. companies out of sales and costing American workers good jobs," he stated. The China Currency Coalition also contends that China is not only undervaluing its currency, but seriously understating its official trade data. "These numbers are phony, as the coalition pointed out last week when China reported its 2005 trade surplus at about $101 billion," Hartquist continued. "We know that it's actually about $435 billion, based on our aggregation of more reliable trade statistics from China's trading partners." "China must change its ways, not only to comply with already agreed-to international trade obligations, but for its own good," Hartquist concluded. "The cosmetic changes China made in its currency last summer fool no one. The banking system is a train wreck with an estimated $800 billion in bad loans outstanding. Yet the Chinese leadership seems frozen in time, unable to agree on a competent strategy to avoid their system crashing like a house of cards." David A. Hartquist, an international trade attorney with the Washington, D.C. law firm of Collier Shannon Scott, PLLC, serves as counsel to the China Currency Coalition. Its co-chairs are AFL-CIO Secretary-Treasurer Richard L. Trumka and Doug Bartlett, Chairman of Bartlett Manufacturing Company, Inc., in Cary, Illinois, also a member of the United States Business Industry Council. The China Currency Coalition is an alliance of industry, agriculture, and worker organizations whose mission is to support U.S. manufacturing by seeking an end to Chinese currency manipulation. For further information, visit chinacurrencycoalition.org.

To: Crimson Ghost who wrote (51020)	1/23/2006 9:37:35 PM
From: shades	Respond to of 110194

asia.news.yahoo.com Monday January 23, 7:52 PM China to maintain FX policy -ex-cbank vice-gov LONDON, Jan 23 (Reuters) - China will maintain the same foreign exchange policy in 2006 as last year but is reluctant to allow currency reserves to rise further, former Chinese central bank deputy governor said on Monday. When asked about the FX policy, Li Ruogu, former deputy governor at the People's Bank of China, told reporters: "There will be no substantial change. I think the central bank will take the same stance as last year." "China will keep a sound and stable monetary policy and fiscal policy." Li, now president of state-owned Export-Import Bank of China, added: "For last year, there was quite a substantial increase (in FX reserves). I don't think China is willing to allow the trend to rise continuously manufacturing.net NAM President Rejects Chinese Denial of Currency Manipulation Anita LaFond Manufacturing.Net January 23, 2006 National Association of Manufacturers (NAM) President, John Engler, reacting to a Chinese bank official's claim that the value of his nation's currency, the yuan, is set by market forces, said the statement is a "regrettable step backward after some incremental progress on this crucial issue appeared to have been made with China last year. "U.S. manufacturers are again urging our own government officials, those from our industrialized trading partners, and both the World Trade Organization and International Monetary Fund, to step up pressures on China and move its currency toward market valuation. Any first year economics student can clearly see that China's massive, record dollar reserves are working to keep the yuan significantly undervalued," explained Engler. Engler went on to say that it is difficult to understand the Chinese assertion that the yuan's valuation has no bearing on the record U.S. trade deficit and China's record trade surplus. "This bank official's statement implies that U.S. manufacturing workers are overpaid, and that America should simply accept an inevitable global migration of industry to China," Engler remarked. "American workers are well-paid because they are the best and most productive in the world," Engler said, "and thanks to that world-leading productivity, U.S. manufacturing's labor costs represent only about 11% of total costs." Engler added that Congress and other policymakers can do much more to help reduce the high cost of doing business in America, allowing American workers to maintain their well-earned high standard of living. To compete successfully in the 21st century Engler says that U.S. industry needs reliable, affordable supplies of energy; increased incentives for innovation; better trained students and workers for high-skill jobs; reduced regulatory burdens; and controls on health care spending. "U.S. manufacturing workers can compete and win against any global rival, provided the playing field is level. But the field won't be level as long as China and other trading partners keep their currencies undervalued," Engler said.

To: Crimson Ghost who wrote (51020)	1/23/2006 9:41:10 PM
From: shades	Respond to of 110194

moneysense.ca Reports: China Likely to Increase Foreign Access to Local-Currency Stocks January 23, 2006 - 06:05:16 By ELAINE KURTENBACH SHANGHAI, China (AP) - China has drawn up a plan to give foreign investors greater access to local currency-denominated shares _ one of several measures aimed at shoring up the markets, reports said Monday, citing a document from the stock watchdog. The government also clarified its policy on management buyouts for state-owned companies, saying managers can own stocks but not take controlling shares. The move aims to give them an incentive to improve management. The plan to allow more foreign investment would apply only to institutional investors, the reports said. A draft plan by the China Securities Regulatory Commission would allow foreign trust funds, pension funds, charity funds, endowments and government investment companies to buy yuan-denominated stocks and bonds under the Qualified Foreign Institutional Investor, or QFII, program, the state-run newspaper Shanghai Daily reported. Currently, only mutual funds, insurers, securities companies and banks can buy Chinese currency shares and bonds through the QFII program. Individual investors can buy so-called B-shares, which are denominated U.S. dollars and Hong Kong dollars, but comprise only a tiny share of the overall market. According to the plan, qualified investors must have five years of operating experience and a minimum of US$5 billion (euro4 billion) in securities assets _ half the current required minimum for mutual funds and insurance companies. However, securities trading accounts for QFII investors must have a minimum yuan deposit equal to US$10 million (euro8.3 million), it said. The report said regulators were seeking comment on the draft plan from banks, stock exchange officials and overseas investors. China has been struggling to entice investors back into the markets in Shanghai and Shenzhen, which have languished amid a stream of scandals over share price manipulation, fraud and other abuses. The markets' benchmark indices dipped to eight-year lows last year. Last week, share prices surged on speculation the government might merge the B-shares into the local currency, or A-share market. However, regulators have not confirmed reports suggesting such a change may come soon. The key Shanghai Composite Index has risen 8.2 percent since the end of 2005, also helped by institutions building up their portfolios at the year's start. But selling pressure after nearly a week of gains hit home Monday, with the benchmark Shanghai Composite Index gaining a mere 0.04 percent to 1,255.77. The Shenzhen Composite Index edged up 0.17 percent to 305.85. Meanwhile, the State-Owned Assets Supervision and Administration Commission announced over the weekend that it would let executives of major state-owned corporations buy shares, a move intended to give them an incentive to improve management. The state assets agency, a Cabinet-level department controlling the country's top state companies, has issued guidelines for such purchases, the state-run newspaper China Daily reported. The rules ban managers from outright takeovers and are also aimed at allowing companies to issue shares as bonuses for good performance it said.