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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (8717)	11/29/2006 3:22:07 PM
From: ahhaha	Respond to of 24758

There seems to be a broadly accepted myth about how the Chinese central bank has a tight grip on the yuan - dollar conversion rate. Just what do they mean by that figure? If yuan moved 5% away from the dollar, then Chinese CB would intervene in the Forex. Why doesn't the yuan move? It must be that world players have no reason to believe it's not properly priced. Thus, the figure, "tight grip", has no basis in reality. Just another myth that encourages 'crats to put in place economic policies that would hurt the US.

To: GraceZ who wrote (8717)	11/29/2006 6:07:38 PM
From: dvdw©	Read Replies (1) \| Respond to of 24758

Grace I had similar thoughts, and it reminded me of a truly funny story, the details wont be right.....but back when East Germany/yougoslavia etc.. was going strong, the central planners had a real struggle from people wanting cars, they built this car called the Trabant, it had what could be construed as a lawn mower engine and was a serious contributor to global warming ( of course they were not subject to this type of criticsm). The funny economics of central planners worked something like this. Build a car we can deliver to our citizens at what the equivalent metrics of income to personal wealth was at the time in the West. Looking over the wall, they saw Germans driving Mercedes etc, and delivered their own citizens an equivalent value which was the Trabant. As i understand it this Socialist prize was in big demand from the folks, they waited eons to get their car. When the wall did come down and these cars began appearing on the Autobahn it raised a serious problem. One friend of mine used to tell me hillarious stories about encountering these vehicles. Socialism delivers exactly what you'd expect.....no quality, no service, no nothing. Yet its demands never end. Perhaps some germans on SI can fill in the gaps in my story.