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 World currencies and China

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Cassandra



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Location: Australia
Registration date: 2009-07-18

PostSubject: World currencies and China   Tue Oct 20, 2009 9:45 pm

http://www.smh.com.au/business/market-distortions-feed-currency-war-20091018-h2vd.html

Quote:
At this point, China's biggest economic questions become political ones. Officials from President Hu Jintao down have been trying to address these problems for years but they have mostly got worse. What is it about China's political system that makes them so intractable?
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Cassandra



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PostSubject: Re: World currencies and China   Tue Oct 20, 2009 10:25 pm



Quote:
The IMF recently wrote that the renminbi remains the most undervalued currency at probably a level of 40% undervalued versus the dollar. As long as the renminbi's daily movement is controlled so strictly by the Chinese government the renminbi will not be allowed to cut into that 40% figure by very much. However, with the signs of a wider use of the currency, it is thought that the renminbi could be allowed to float more in the future
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vichy



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PostSubject: Re: World currencies and China   Sat Oct 24, 2009 7:14 pm

Quote:
What is it about China's political system that makes them so intractable?

Capital levels aside China > America. You can say and think anything you want in China, you can set up a business in two weeks and the only thing that's illegal is trying to arrange 'demonstrations' or other political pressure groups, IE, mob violence.

China is keeping its currency undervalued to encourage exports and subsidize its export companies who are failing due to the world recession. I'm not saying that's productive, or that it's the only reason, but that's one reason I've picked out from their little press statements and maneuvers.
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Conrad



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PostSubject: Re: World currencies and China   Sun Oct 25, 2009 8:02 am

vichy wrote:
Quote:
What is it about China's political system that makes them so intractable?

Capital levels aside China > America. You can say and think anything you want in China, you can set up a business in two weeks and the only thing that's illegal is trying to arrange 'demonstrations' or other political pressure groups, IE, mob violence.


That is quite appealing actually, also because it means that society and the media are not so intensly political, with everybody having opinions on whatever, elections, campaigns, etc.

The absence of all that, but in stable relativel;y free market environment, is pretty good. I mean, like Singapore: one-party state, but free, and unpolitical.

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Cassandra



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Location: Australia
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PostSubject: Re: World currencies and China   Sun Oct 25, 2009 10:11 am

oops, I accidently erased my post. Sorry.

If it is no trouble and in the archives, please restore it, otherwise I will have to remember what I wrote.


Last edited by Cassandra on Mon Oct 26, 2009 11:36 am; edited 3 times in total (Reason for editing : I is klutz)
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Static4367



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PostSubject: Re: World currencies and China   Sun Oct 25, 2009 9:29 pm

I recently spent several hours talking to a young woman from Shanghai while traveling in Thailand. Her view was that the Chinese people simply don't care to get involved in politics. They feel that the country is generally run well, and while they know that to some degree that opinion is largely based on party propaganda, they also see the standard of living constantly increasing all around them. They do not look at the current incarnations of democracy as something that is enviable or worthy of being emulated. She talked about how our politicians are constantly in the news bickering with each other to no real purpose. By contrast, the perception is that Chinese politicians are getting things done rather than bickering and campaigning, and that generally those things are beneficial to the people.

I have to say that I found her vision of life in China quite compelling. If we are going to have to live with politicians I would prefer at least to not have to hear them "debating" with each other constantly.

That being said, China has a long way to go before it is truly free economically, much less politically. Access to credit is still largely controlled by the state run banks which lend based on political dictates. Capital is highly regulated both in terms of who can invest in what and obviously moving money in and out of the country at fair exchange rates. And most importantly property rights are not clearly secure.

What can be said is that China is clearly becoming more free economically while the US is becoming less.
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Cassandra



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PostSubject: Re: World currencies and China   Mon Oct 26, 2009 11:33 am

cassandra wrote:
..... As soon as Obama got into office, Geitner accused the Chinese of currency manipulation, which offended the Chinese.


http://www.chinastakes.com/2009/10/us-currency-hegemony-premium-why-the-federal-reserve-is-a-currency-manipulator.html
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