[mack]

I saw this on the news. Somthing about the US threatening sanctions on China because their currency is over valued. It said that the dollar and the Yen exchange on a fixed rate?

How is it possible for two free markets economy's currencys to be traded at a predetermined rate? Im not connecting the dots here. So what is China trying to pull here?

-mack

 

[Changleen]

It's supposedly under-valued by the way...

http://www.iht.com/articles/2005/04/21/opinion/edchina.php

 

[mack]

Ahhhh, i see. But what the hell does china make except for steel and cheap pastic crap. No american companys make cheap plastic crap so what is the problem?

 

[Changleen]

Ahhhh, i see. But what the hell does china make except for steel and cheap pastic crap. No american companys make cheap plastic crap so what is the problem?

You're kidding right?

 

[valve bouncer]

You're kidding right?

You'd hope so but I reckon he is actually that thick.

 

[ALEXIS_DH]

dude, china manufactures EVERYTHING..

 

[fluff]

You'd hope so but I reckon he is actually that thick.

It sure takes the shine off being part of the internet generation...

 

[Changleen]

He's only 16 - give him a break.

 

[dwaugh]

It's supposedly under-valued by the way...

I thought I read that it is worth 8 times more. Or did that 8.something number refer to something else? If so, what?

 

[fluff]

I thought I read that it is worth 8 times more. Or did that 8.something number refer to something else? If so, what?

If it is worth eight times more than its current value then it is under-valued.

 

[dwaugh]

If it is worth eight times more than its current value then it is under-valued.

Ooh, now that it is said in plain words I get it. But I thought it said it was 8x over the US dollar. Whatever.

 

[fluff]

Ooh, now that it is said in plain words I get it. But I thought it said it was 8x over the US dollar. Whatever.

In hindsight it sounds like I was trying to be a smartass, but you got what I was trying to say. Journos like big words - makes 'em feel superioreriorer.

 

[mack]

You're kidding right?

E- sarcasim. We really need a smiley for this. ink:

 

[Changleen]

Ooh, now that it is said in plain words I get it. But I thought it said it was 8x over the US dollar. Whatever.

It's nothing like 8x. It'd be the strongest currency in the world by miles! China's economy would quickly implode followed by everyone elses... People are talking about a 120-150% increase in value over a period of time. Expect China to carefully control the rate of change once they allow the move from the current locked rate.

 

[Changleen]

E- sarcasim. We really need a smiley for this. ink:

I think the pig is as close as we're gonna get.

 

[Changleen]

Ohh, More interesting comment:

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8535370

Peter Schiff, chief global strategist at Euro Pacific Capital Inc., thought a float of the Chinese currency would be bad news for the U.S. economy because "our economy is based on the artificial low interest rates and low consumer prices that are a direct result of this peg.

"China is providing a massive subsidy in the form of low interest rates and low consumer prices," Schiff said.

"For all the tough talk -- it's all politics -- the last thing the U.S. government wants is for China to float the currency," Schiff said.

 

[mack]

So they play this game by buying their own currency and then gaining profit from their then cheaper products? Will this tactic work forever, or will it catch up with them.