The Conservative Cave
Current Events => Economics => Topic started by: gurn on April 16, 2011, 09:28:34 AM
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http://www.slate.com/id/2291271/
Anyone who's spent any time in China notices this sort of stuff.
Fabulous airports, gleaming shopping malls, thousands of shoppers browsing, but nobody spending any money.
Plus, highways, bridges, bullet trains out the wazoo, but few people can afford to make use of them.
Abandoned high-rise apartment developments, where the high-ranking communists got sweet-heart
bank loans and then retired to Sanya without bothering to finish the construction.
When a country keeps its currency low - it can afford do do stuff like this.
For the Americans who keep pining for a strong Dollar, they should consider
what Conway Twitty said a long time ago, "Think about it Darlin'".
The US got rich exactly the way China is getting rich - by keeping its currency low
relative to the nations it competes with./
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Yo, Gurn. I see where you're coming from. Without getting too involved I'll just offer you a simple go **** yourself.
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Yo, Gurn. I see where you're coming from. Without getting too involved I'll just offer you a simple go **** yourself.
Hey yo! I wouldn't want you to get too involved. Ya might stress out those little grey cells.
http://fpc.state.gov/documents/organization/99496.pdf
China’s Holdings of U.S. Securities: Implications for the U.S. Economy:
Given its relatively low savings rate, the U.S. economy depends heavily on
foreign capital inflows from countries with high savings rates (such as China) to help
promote growth and to fund the federal budget deficit. China has intervened heavily
in currency markets to limit the yuan’s appreciation. As a result, China has become
the world’s largest and fastest growing holder of foreign exchange reserves (FER),
which totaled $1.4 trillion as of September 2007. China has invested a large share
of its FER in U.S. securities, which, as of June 2006, totaled $699 billion, making
China the 2nd largest foreign holder of U.S. securities (after Japan).
Now why would both China & Japan want their currencies weak relative to the US Dollar?
Well...maybe it's because they know the amount of money they spend on T-Bills, is less than what they
would have to spend on transfer payments (ie, welfare to jobless) if their currencies were
stronger than the Dollar.
Is it possible China & Japan know their governments are more stable and their people are better off,
if their currencies are artificially weak versus the Dollar?
Is it possible they're right?
An MIT economist just noticed it. I suspect Chinese & Japanese have known about it for centuries.
http://econ-www.mit.edu/files/6613 (The China Syndrome - Net Effect of Trade with China
on US Economy)
But hey yo! No need to sweat the details, eh.
So I won't even quote the words of that late, great economist, Conway Twitty.
Party on dude! :stoner:
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This is Donald Trumps Campaign "Slogan".
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You are way too far inside the box, Gurn.
Three little words. END THE FED.
Yes, it really is that simple.
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You are way too far inside the box, Gurn.
Three little words. END THE FED.
Yes, it really is that simple.
Hey yo bro...you're getting way too involved. Two words - Gingko Biloba, an old Chinese remedy to restore grey cells and get 'em sparking' like new again.
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UPDATE:
China's Train Wreck
http://www.washingtonpost.com/opinions/chinas-train-wreck/2011/04/21/AFqjRWRE_story.html
"Liu Zhijun was one of the most influential people in China. As minister of railways, Liu ran China’s $300 billion high-speed rail project. U.S., European and Japanese contractors jostled for a piece of the business while foreign journalists gushed over China’s latest high-tech marvel.
Today, Liu Zhijun is ruined, and his high-speed rail project is in trouble. On Feb. 25, he was fired for “severe violations of discipline†— code for embezzling tens of millions of dollars. Seems his ministry has run up $271 billion in debt — roughly five times the level that bankrupted General Motors. But ticket sales can’t cover debt service that will total $27.7 billion in 2011 alone. Safety concerns also are cropping up."