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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (57670)	11/9/2009 11:24:45 PM
From: TobagoJack	Read Replies (2) \| Respond to of 217774

what members of that hoarse chorus do not realize, to their detriment, is the truth that: (i) china invented ink and paper and printing press, and (ii) invented fiat money, and then innovated fiat paper money (iii) first implemented national banking and money transfer (iv) has more than 600 years of pentup money printing demand on call (v) can more effectively put paper money to work than any other domain and so, should rmb free float and be globally accepted ... i will stop there and let the imagination to the work ;0) question: does anyone on this thread wish to engage and hoard rmb? if sample size indicative of global feel, the rmb will crash, and drag down all, even as the rmb will recover, as 600 years of piled up work gets done

To: Snowshoe who wrote (57670)	11/9/2009 11:43:41 PM
From: Maurice Winn	2 Recommendations Read Replies (2) \| Respond to of 217774

I don't understand the problem: <China's managed rate regime gave it too much of a competitive edge when it comes to exports.> If somebody wants to make me something really cheaply, they are welcome to do so. Suppose they made the exchange rate so absurdly undervalued that they are working for 1c per month, yes, that means that they'd get a lot of jobs and their exports would be really cheap for foreign devils to buy. So how is that a problem for the buyers? It's a problem for the sellers. Yes, it means foreign producers of the same things will have to get another job. That's not really a problem. That's how competition works - the inefficient high cost people go out of business. It looks to me like whining about "they are selling below cost". I've heard it all before, whine whine whine. It always means the whiners are too greedy with a sense of entitlement. It doesn't make sense for China's bosses to force citizens to work for few US$ when there are already umptymega$billions stacked up hoping dilution doesn't destroy the value of said US$ stash. I don't believe they are doing that. Given the unemployment and underemployment in China, perhaps the exchange rate needs to be even more in "their favour" as people put it. Mqurice

To: Snowshoe who wrote (57670)	11/11/2009 11:50:34 AM
From: elmatador	Respond to of 217774

China hints at renminbi appreciation. China gave 1st hint on Wednesday of a possible appreciation in the renminbi amid mounting international criticism over its currency policy. Brazil asked China, thought better do .something about because best CBs on the planet are in Brazil. They must know what they are talking about China hints at renminbi appreciation By Geoff Dyer in Beijing Published: November 11 2009 03:36 \| Last updated: November 11 2009 15:20 China gave its first hint on Wednesday of a possible appreciation in the renminbi amid mounting international criticism over its currency policy and ahead of President Barack Obama’s visit to China next week. ELMAT: What? the Anglos think it is Obama? As new figures indicated that the recovery in the Chinese economy was gathering pace, the Chinese central bank said foreign exchange policy would take into account “capital flows and major currency movements” – an acknowledgement of both the large speculative inflows of capital China is receiving and the weakness in the US dollar. The new wording, which was included in the bank’s quarterly report on monetary policy, comes a few days before Mr Obama is expected to raise the issue of China’s currency during his first trip to Beijing. It also follows growing international pressure for China to strengthen its currency, particularly from the European Union and Japan. The International Monetary Fund said at the weekend that the renminbi, which has effectively been pegged to the dollar since the middle of last year, was “significantly undervalued”. The central bank’s comments contrast with those of Chen Deming, commerce minister, who called at the weekend for a stable exchange rate to “create stable expectations” for exporters. Economists said the new wording from the central bank would give it more flexibility, but did not necessarily mean that the government would shift policy soon. Indeed, few economists expect China to abandon its effective peg to the dollar before the middle of next year. The central bank had “hinted at the growing pressures for appreciation, but I would temper that with the commerce minister’s comments about the need for currency stability”, said Ben Simpfendorfer, economist at RBS in Hong Kong. The government also released a volley of new data on Wednesday that indicated that the economic recovery had accelerated again last month with factory output increasing at a rate not seen since before the financial crisis and retail sales also growing strongly. The National Bureau of Statistics said industrial production had risen 16.1 per cent from the same month last year, up from a rate of 13.9 per cent in the year to September. The result was the fastest rate of growth since March last year, indicating that the recovery was broadening from government-led infrastructure to other sectors, including construction. The robust figures will intensify the debate about whether the government needs to sharply scale back its stimulus policies amid growing fears of asset bubbles and inflation – concerns that are mounting across Asia. The headline rate of new lending in local currency declined sharply last month to Rmb253bn ($37bn) from Rmb516.7bn, which could be an indication that Beijing is reining in the monetary stimulus. However, economists pointed out that the level of medium-term loans, which are more important for the economy than short-term credit, remained strong and that foreign exchange loans and capital inflows were also rising. The increase in the M2 measure of money supply inched up to 29.4 per cent year on year from 29.3 per cent in September. Retail sales gained 16.2 per cent over a year earlier, accelerating from a 15.5 per cent increase the month before, while fixed asset investment increased 33.1 per cent year on year compared with 33.3 per cent in September. Although some analysts had been expecting a significant improvement in overseas orders, exports dropped 13.8 per cent year on year, against the 15.2 per cent rate of decline in September. Imports fell 6.4 per cent year on year, against 3.5 per cent last month, which some analysts said was a sign that China was stockpiling fewer commodities. The trade surplus for the month nearly doubled to $24bn.