The yuan rate is more a China-US conspiracy which seems to please both sides. The Chinese don't want to see a dollar devaluation which would leave them holding a load of devalued long bonds. The Americans are quite happy to fuel their economy with cheap Chinese imports mainly because they don't make much anymore and if the price of imports increased they'd run into inflation and recession.
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Posted 8 months ago #
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The yuan rate is more a China-US conspiracy which seems to please both sides.
Not sure the US are too happy about it, at least publicly. (Something I've read in various places, the Telegraph article below is just the latest to mention it).
Posted 8 months ago # -
From the article you link, Mogrim:
"But this week a coalition of more than 50 US business groups told Congress that trying to force China to ditch its currency policy may be counter-productive."
Posted 8 months ago # -
Politicians are the same bunch of feckless fools and liars in any country, it's the commercial trade barriers that still exist, via trade organisations, bodies local 'societies' that rule what exactly happens at a fiscal level. Ever wondered why the French get sold French cars and the Germans German cars predominantly, ever tried to organise a trade event in Germany only to be blocked and the following year a German company runs your 'show'.
The trouble my "agency' had trying to break into Europe, just doesn't bear close examination, here in the UK our market is much more open and welcoming to companies from any nation to trade, it aint the same in Europe.
Posted 8 months ago # -
French cars are more expensive in France than in Germany. German cars are more expensive in Germany than in France. So why then do I drive a Peugeot? Because I bought it when runing a French business and knew that being seen in a Merc would be bad for business.
Yes, there's nationalism but in the positive sense that the French are proud of their culture and products and the Germans are proud of their culture and products. I generally drink French wine and my German friends generally drink German wine. Maybe if the British had been proud of the Montégo (which was a fine car) then BMW wouldn't have been able to buy Rover for peanuts and run it into the ground.
Posted 8 months ago # -
From the article you link, Mogrim:
"But this week a coalition of more than 50 US business groups told Congress that trying to force China to ditch its currency policy may be counter-productive."
Hardly a conspiracy, though, is it?
Posted 8 months ago # -
You're gettin desperate now, Mogrim, focusing on "conspiracy". Choose another expression from: tacit agreement, entente, consensus, alliance or any word that demonstrates that the current exchange rate is maintained with the agreement of both sides to the detriment of third parties. And maintained because they are both in too deep to get out.
Posted 8 months ago # -
You're gettin desperate now, Mogrim, focusing on "conspiracy". Choose another expression from: tacit agreement, entente, consensus, alliance or any word that demonstrates that the current exchange rate is maintained with the agreement of both sides to the detriment of third parties. And maintained because they are both in too deep to get out.
Still not convinced, the US has been moaning for ages about the exchange rate. I suppose you could argue all they do is moan in public, but have a tacit agreement in private, but that would seem to go against all publicly available evidence.
Posted 8 months ago # -
Have a look at a 10 year yuan/dollar graph. You'll note it's flat to 05 when the peg was officially removed but then went flat again for a couple of years. Free market graphs don't do "flat". There's always volatility and "flat" means intervention or pegging by one or both sides. If either side really wants to break the peg they can, in the case of yuan/dollar I'm absolutely certain that if Obama stood up and said that the dollar was going to be devalued by 40% against the yuan the markets would do the rest for him.
Before the Euro was launched there was manipulation by governments of European currencies and the grapsh went flat. Even the pound was flat against European currencies for while till John Major let the peg go and was slagged off even though its was the right decision for the British economy.
Posted 8 months ago # -
Have a look at a 10 year yuan/dollar graph.
Ok, you win. There's no way on earth I'm spending Saturday night checking out yuan/dollar rates. I'm far too busy checking out current saucepan prices for that.
Posted 8 months ago #
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