Your problem is not the American government trying to revalue your currency * to levels where it should be * instead of being pegged to some artificial basket. Why do you think Chinese real estate is sky high? It's because of speculators from Hong Kong, Taiwan ( gasp, the so called "enemy" ) and even South Korea, purchasing property and waiting for the currency appreciation in a free float. Your problem is your leaders are corrupt. Every single one of them. And what that means is that corrupt individuals will do the bidding of the highest paymaster. At the current moment, the highest paymaster is the export lobby. Therefore the currency will stay suppressed to please them. It's about time the Chinese started developing their own internal consumer economy instead of dumping goods below cost in other markets to destroy their manufacturing economies. A free floating Yuan will be an excellent first step in righting the current imbalance.
So you are saying that china is able to destroy the US's economy? Is that an excuse or fact? Are you alleging a grand world-wide conspiracy here?
Excellent Commentary All .................................................................................. A country makes headway....because of comparative advantages... The question is ...are these comparative advantages contrived...and thus planned out... Or is it...just the coincidence of worldwide events ..that just happen... Or is it ...a little bit of both.. ........................................................................................... After living in several countries..and experiencing how politics basically overide good economics...It is probable that that world wide economic events transpire...mostly at the whim of political sway... And political sway...usually provides the core reasons...which influence tax revenues ...debt..and printing currency... Thus world wide economic events...are heavily garnered by stop and start political economics... Economies become moving targets ..so to speak..
You have some good points . I also believe the policy-makers should be held responsible for our dilemma, though I am not sure , all the leadership is corrupted. I would rather believe that , the mistake in economic policy is due to lack of experience , rather than thorough corruption
Okay, it quietly continues to move up still. This baby is due for a 4-7% haircut: ^SSEC Shanghai Composite 4,560.77 Aug 3 Up 153.04 (3.47%) With its behavior, it will happen when other global markets having boring flat days. I think this question has been asked: Is there an etf to play that index? I want to short it. I'm getting that 1999-2000 feeling for this index like the Naz a few years ago. The same people that called me crazy for shorting the QQQ at 88 will probably call me crazy this time. I didn't see one here: http://www.etfconnect.com/select/FindAFund.aspx
Of course its due for a 4% haircut. Its up 3.47% today. Read a report citing decreasing CPI pressure today, saying that food prices may have peaked. This makes sense. Look at soybeans, corn -- all backing down off highs.
China will dominate the earth soon..... they can field an army off 300 million while we have to recruit felons to go to iraq btw, a Chinese engineer can be hired for around $12K per year but you have to pay the CHinese gov. twice his salary as a "tax" corruption is relative
btw, I recall somewhere saying the Foreigners cant invest in Shanghai so it is considered an "island market" plus the Chinese are opening brokerage accounts at the rate of 250,000..... PER DAY
Overnight, the Shanghai Composite Index rose 1.48% to yet another record at 4628.11! Definitely no credit worries over there. Arch
Getting back to question....The reason is because the average Chinese lives with their head up their arse. The average Chinese has no idea about the NYSE, DAX, FTSE anything. They are programmed into thinking that the only thing that matters is China. Remember it's a planned economy with a central committee of the communist party. It is NOT a market economy it is a PLANNED economy. It is not real demand that comes from China. I just came back from the shithole place. I saw a 16 lane freeway that gets less than 20,000 cars, ruck etc travelling on it PER DAY! etc. Fuck Jim Rogers! Jim Rogers is pussywhipped into blathering about $1,000 per ounce gold and $100 oil. I saw him say the Yuan is going to be the hegemonic currency (sic) So full of shit!