VOA News – Chinese Prime Minister: China Will Not be Pressured to Revalue Currency — Thios means a lot more cheap junk is coming our way.
Prime Minister Wen Jiabao stuck to Beijing’s stance that it may eventually move to reform its currency, but only when the government determines that doing so will not hurt the country’s fragile banking sector and the economies of its Asian trading partners.
Related link:
For Kindle and with free ePub version. Only $9.49 Great reading.
Here is what Gary Shapiro CEO of the Consumer Electronics Association (CEA) said: Dvorak's writing sings with insight and clarity. Whether or not you agree with John's views, he will get you thinking and is never boring. These essays are worth the read!
Subscribe to Main Blog feed here:
Subscribe to Comments too (below):
Bad Behavior has blocked 5024 access attempts in the last 7 days.
Good for the Chinese standing up for themselves. I wish leaders around the world would do this more often. When a guy did this in Malaysia, they put him on trial as a Sodomite. The IMF sends our economists everywhere to get people to devalue their currency, so people end up with less money, and they are surprisingly bad things happen. Of course, they just move on to the next country. If everyone devalued, you’d be right back where you started.
Oh wait, here they are encouraging China to revalue, while they encourage everyone else to devalue. While that would give more money to the poor in China, having the currency go back and forth causes its own problems all over the place. Why not just keep the money stable rather than letting some corporations decide how much money you have?
The Chinese’ tying their currency to the dollar acts to dilute the highly inflationary effects of the Fed’s ludicrously low interest rates. The “encouraging China to revalue” is just a scam for public consumption. If the Chinese actually did so, the American economy would probably collapse overnight. Of course, that would not be in the best interests of the Chinese, either…
Also, by keeping the Yuan artificially undervalued they keep the price of labour work low.
All these random economic talking points in the media don’t make any sense. The yuan is a unit of currency, nothing more. You use it to measure how much you are buying and selling. Your height doesn’t change just because you start measuring by centimeters instead of inches. Changing the measurement back and forth just adds to the cost of doing business. Keeping it fixed to the dollar isn’t bad. Fixing to gold is a better solution as it keeps the government honest as well.
If the Chinese let their currency appreciate, it will cause a devaluation of of sorts for the dollar. The cheaper dollar means windfall profits for oil companies but high oil prices for U.S. consumers.
What? China’s not a significant supplier of oil, and their changing their currency is going to change US prices for something they don’t make? The only way you can say the dollar becomes cheaper, is relative to the Chinese currency, not other currencies. The US has control over the value of its own currency.
The U.S. only has destructive control over the value of its fiat currency. The Fed can (and does) devalue the dollar on a continuous basis. This is offset, somewhat, by currencies that are tied to the dollar. Diluting our inflation through a billion or so Chinese does make its presence felt. The Chinese government has, also, been reinvesting that money in U.S. government bonds, which props up the economy no end. Or, no end until the dollar loses credibility as a measure of value. Since it’s not backed by anything but the “full faith and credit” of the U.S. government, which has denied its debts on numerous occasions to date, this is a potentially gruesome problem. And, yes, China has rather a lot to say about whether the dollar will be worth a penny next year.
If the chinese devalue the yuan.
What are all the millions of poor people going to do? As it is some of the farmers make less then $300.00 dollars a year. Can you imagine living of a piece of land.To depend on it for food and clothing and health care. Not being able to get no extra money from no where.
I wish the U.S would stop meddling in the poor people affairs
I have been there . I have seen the plight of the poor.
Comment by Jim Martinez 7/1/2005