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Strategies & Market Trends : Greater China Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (7631)	10/12/2011 3:27:39 PM
From: Glenn Petersen	Respond to of 8334

It will die in the House. Chart of the Day: Yuan Rises, Deficit Widens Mark J. Perry CARPE DIEM Tuesday, October 11, 2011 The chart above is from The Economist, with the following commentary: "As the chart above suggests, the recent relationship between China's currency and America's trade deficit with China is not what China hawks in the Senate think it is. Rather than a cheap yuan leading to a flood of Chinese imports, the yuan has actually strengthened as the deficit has widened. There are many things American companies dislike about the way business is done in China: intellectual-property theft, the impossibility of winning government contracts, baffling rules on corporate ownership and so on. However the place for fixing these things is the World Trade Organisation, not Congress. President Obama's administration has already passed on two opportunities to label China a currency manipulator, out of a well-founded fear of sparking a trade war. Senators should do the same (while hoping that China responds to their sabre-rattling by letting the yuan rise a little more, as happened the last time the Senate came close to passing a similar measure, in 2005)." Related: Don Boudreaux responds to the "Everest of errors that is Peter Morici’s argument that the U.S. trade deficit plays a large role in keeping the U.S. unemployment rate high." Posted 11:40 AM mjperry.blogspot.com

To: Julius Wong who wrote (7631)	10/12/2011 9:30:27 PM
From: steve harris	Respond to of 8334

With crap like this, you start wondering when China will start throwing out, I mean, China starts blocking US vendors from contracts. cellular-news.com

To: Julius Wong who wrote (7631)	10/13/2011 7:04:47 AM
From: Julius Wong	Respond to of 8334

Yuan Traders Diverge From Senate After Exchange Rate Threats: China Credit By Fion Li and Kyoungwha Kim - Oct 13, 2011 At a time when U.S. lawmakers are closer than ever to punishing China for having an undervalued currency, trading in Hong Kong suggests the yuan is too strong. The currency sank as much as 1.1 percent to 6.5463 per dollar in the city yesterday, a record 2.4 percent discount to the prevailing Shanghai rate, data compiled by Bloomberg show. The yuan has traded at a discount for almost four weeks, undercutting the onshore rate by 1 percent on average, as Europe’s debt crisis spurs demand for dollars. The premium investors demand to hold China’s dollar-denominated debt instead of U.S. Treasuries widened 43 basis points in the past month to 268 basis points, based on a JPMorgan Chase & Co. index. The Senate passed a bill on Oct. 11 that would allow sanctions on countries with misaligned exchange rates. China’s Foreign Ministry, the biggest holder of Treasuries, said the proposed legislation is “protectionism” that would put the global economy at risk. The yuan gained 18 percent in the past four years, the most among 25 emerging-market currencies. “Global investors are seeing problems in China’s economy and it’s not sensible to accelerate appreciation now,” said Ronald Wan, a Hong Kong-based managing director at China Merchants Securities Co., a unit of the nation’s sixth-biggest bank by market value. “Advocating a stronger yuan to create jobs and help the economy might have an audience in the U.S. but it’s not convincing investors. The bill is a political gesture.” bloomberg.com