If it was ‘set’ or ‘pegged’ to the dollar, it would not move at all. There are small movements, b…[/quote]
I am tool lazy to look it up, but the Chinese government controls the exchange rate. It definitely is not a free market situation like the dollar or the german mark.
Michael Pettis’s from the blog I sited lists the ways that the government encourages excess saving and thereby subsidies manufacturers. It is the equivalent of easy credit we had for the housing market.
Certainly Chinese culture values land ownership, but the bad loans are not just in real estate but with all the excess investment in production
