Home › Forums › Financial Markets/Economics › Chinese yuan
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Bubblesitter.
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November 20, 2009 at 8:27 AM #485124November 20, 2009 at 11:44 AM #485284
MadeInTaiwan
ParticipantI think there are some errors in your original post.
Chinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market. At a time when the rest of the export nations (Germany, Japan etc) are losing export due to higher evaluation of their currencies, China is expanding its export market share.
According to this highly recommended blog http://mpettis.com/, this trend will lead to trade tension and quite possibly trade war.
A readjustment is in order. U.S. has to import less and export more (we’ve started doing that), and China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops. Go onto the website above to look for stories on an overripe Chinese real estate bubble.
MadeInTaiwan
November 20, 2009 at 11:44 AM #485516ParticipantI think there are some errors in your original post.
Chinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market. At a time when the rest of the export nations (Germany, Japan etc) are losing export due to higher evaluation of their currencies, China is expanding its export market share.
According to this highly recommended blog http://mpettis.com/, this trend will lead to trade tension and quite possibly trade war.
A readjustment is in order. U.S. has to import less and export more (we’ve started doing that), and China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops. Go onto the website above to look for stories on an overripe Chinese real estate bubble.
MadeInTaiwan
November 20, 2009 at 11:44 AM #485198ParticipantI think there are some errors in your original post.
Chinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market. At a time when the rest of the export nations (Germany, Japan etc) are losing export due to higher evaluation of their currencies, China is expanding its export market share.
According to this highly recommended blog http://mpettis.com/, this trend will lead to trade tension and quite possibly trade war.
A readjustment is in order. U.S. has to import less and export more (we’ve started doing that), and China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops. Go onto the website above to look for stories on an overripe Chinese real estate bubble.
MadeInTaiwan
November 20, 2009 at 11:44 AM #484659ParticipantI think there are some errors in your original post.
Chinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market. At a time when the rest of the export nations (Germany, Japan etc) are losing export due to higher evaluation of their currencies, China is expanding its export market share.
According to this highly recommended blog http://mpettis.com/, this trend will lead to trade tension and quite possibly trade war.
A readjustment is in order. U.S. has to import less and export more (we’ve started doing that), and China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops. Go onto the website above to look for stories on an overripe Chinese real estate bubble.
MadeInTaiwan
November 20, 2009 at 11:44 AM #484828ParticipantI think there are some errors in your original post.
Chinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market. At a time when the rest of the export nations (Germany, Japan etc) are losing export due to higher evaluation of their currencies, China is expanding its export market share.
According to this highly recommended blog http://mpettis.com/, this trend will lead to trade tension and quite possibly trade war.
A readjustment is in order. U.S. has to import less and export more (we’ve started doing that), and China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops. Go onto the website above to look for stories on an overripe Chinese real estate bubble.
MadeInTaiwan
November 20, 2009 at 12:21 PM #485521ucodegen
ParticipantChinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market.
Incorrect.. it does float. You can see the ‘fight’ between trade imbalance and counter trade here.
http://www.x-rates.com/d/CNY/USD/hist2009.html
http://www.x-rates.com/d/CNY/USD/hist2008.html
http://www.x-rates.com/d/CNY/USD/hist2007.html
http://www.x-rates.com/d/CNY/USD/hist2006.htmlIf it was ‘set’ or ‘pegged’ to the dollar, it would not move at all. There are small movements, but the small size is due to the counter trade.
You have to use counter trade to prevent the exchange rate from changing due to trade imbalance.A readjustment is in order. U.S. has to import less and export more (we’ve started doing that),
Definitely.
China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
Actually they are trying to get consumption up.. but much of the populace are fanatical savers, combined with the large labor pool helping hold wages down and that the state owns most companies. The other thing that China is spending money on is infrastructure (highway systems, water & sewer, and power generation). Their spending on power generation is worth watching. The Chinese seem to realize that they can’t import enough oil for power generation, though they may have enough coal. They are spending a surprising amount on solar electric generation.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops.
Biggest problem with Chinese investors is that they have been conditioned to think like a group.. so they move/invest as a herd (think ‘real estate never goes down’.. in overdrive without contradictory viewpoints).
November 20, 2009 at 12:21 PM #484664ParticipantChinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market.
Incorrect.. it does float. You can see the ‘fight’ between trade imbalance and counter trade here.
http://www.x-rates.com/d/CNY/USD/hist2009.html
http://www.x-rates.com/d/CNY/USD/hist2008.html
http://www.x-rates.com/d/CNY/USD/hist2007.html
http://www.x-rates.com/d/CNY/USD/hist2006.htmlIf it was ‘set’ or ‘pegged’ to the dollar, it would not move at all. There are small movements, but the small size is due to the counter trade.
You have to use counter trade to prevent the exchange rate from changing due to trade imbalance.A readjustment is in order. U.S. has to import less and export more (we’ve started doing that),
Definitely.
China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
Actually they are trying to get consumption up.. but much of the populace are fanatical savers, combined with the large labor pool helping hold wages down and that the state owns most companies. The other thing that China is spending money on is infrastructure (highway systems, water & sewer, and power generation). Their spending on power generation is worth watching. The Chinese seem to realize that they can’t import enough oil for power generation, though they may have enough coal. They are spending a surprising amount on solar electric generation.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops.
Biggest problem with Chinese investors is that they have been conditioned to think like a group.. so they move/invest as a herd (think ‘real estate never goes down’.. in overdrive without contradictory viewpoints).
November 20, 2009 at 12:21 PM #485203ParticipantChinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market.
Incorrect.. it does float. You can see the ‘fight’ between trade imbalance and counter trade here.
http://www.x-rates.com/d/CNY/USD/hist2009.html
http://www.x-rates.com/d/CNY/USD/hist2008.html
http://www.x-rates.com/d/CNY/USD/hist2007.html
http://www.x-rates.com/d/CNY/USD/hist2006.htmlIf it was ‘set’ or ‘pegged’ to the dollar, it would not move at all. There are small movements, but the small size is due to the counter trade.
You have to use counter trade to prevent the exchange rate from changing due to trade imbalance.A readjustment is in order. U.S. has to import less and export more (we’ve started doing that),
Definitely.
China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
Actually they are trying to get consumption up.. but much of the populace are fanatical savers, combined with the large labor pool helping hold wages down and that the state owns most companies. The other thing that China is spending money on is infrastructure (highway systems, water & sewer, and power generation). Their spending on power generation is worth watching. The Chinese seem to realize that they can’t import enough oil for power generation, though they may have enough coal. They are spending a surprising amount on solar electric generation.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops.
Biggest problem with Chinese investors is that they have been conditioned to think like a group.. so they move/invest as a herd (think ‘real estate never goes down’.. in overdrive without contradictory viewpoints).
November 20, 2009 at 12:21 PM #485289ParticipantChinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market.
Incorrect.. it does float. You can see the ‘fight’ between trade imbalance and counter trade here.
http://www.x-rates.com/d/CNY/USD/hist2009.html
http://www.x-rates.com/d/CNY/USD/hist2008.html
http://www.x-rates.com/d/CNY/USD/hist2007.html
http://www.x-rates.com/d/CNY/USD/hist2006.htmlIf it was ‘set’ or ‘pegged’ to the dollar, it would not move at all. There are small movements, but the small size is due to the counter trade.
You have to use counter trade to prevent the exchange rate from changing due to trade imbalance.A readjustment is in order. U.S. has to import less and export more (we’ve started doing that),
Definitely.
China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
Actually they are trying to get consumption up.. but much of the populace are fanatical savers, combined with the large labor pool helping hold wages down and that the state owns most companies. The other thing that China is spending money on is infrastructure (highway systems, water & sewer, and power generation). Their spending on power generation is worth watching. The Chinese seem to realize that they can’t import enough oil for power generation, though they may have enough coal. They are spending a surprising amount on solar electric generation.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops.
Biggest problem with Chinese investors is that they have been conditioned to think like a group.. so they move/invest as a herd (think ‘real estate never goes down’.. in overdrive without contradictory viewpoints).
November 20, 2009 at 12:21 PM #484833ParticipantChinese government sets the exchange rate by setting the exchange rate against the dollar, while the rest of the world operated on a currency market.
Incorrect.. it does float. You can see the ‘fight’ between trade imbalance and counter trade here.
http://www.x-rates.com/d/CNY/USD/hist2009.html
http://www.x-rates.com/d/CNY/USD/hist2008.html
http://www.x-rates.com/d/CNY/USD/hist2007.html
http://www.x-rates.com/d/CNY/USD/hist2006.htmlIf it was ‘set’ or ‘pegged’ to the dollar, it would not move at all. There are small movements, but the small size is due to the counter trade.
You have to use counter trade to prevent the exchange rate from changing due to trade imbalance.A readjustment is in order. U.S. has to import less and export more (we’ve started doing that),
Definitely.
China needs to consume more and export less. However, China is still spending to stimulate export growth against internal consumption.
Actually they are trying to get consumption up.. but much of the populace are fanatical savers, combined with the large labor pool helping hold wages down and that the state owns most companies. The other thing that China is spending money on is infrastructure (highway systems, water & sewer, and power generation). Their spending on power generation is worth watching. The Chinese seem to realize that they can’t import enough oil for power generation, though they may have enough coal. They are spending a surprising amount on solar electric generation.
By the way, you think our real estate bubble was bad. Wait until the Chinese one pops.
Biggest problem with Chinese investors is that they have been conditioned to think like a group.. so they move/invest as a herd (think ‘real estate never goes down’.. in overdrive without contradictory viewpoints).
November 20, 2009 at 12:28 PM #485540Arraya
Participant[quote=ucodegen]
Biggest problem with Chinese investors is that they have been conditioned to think like a group.. so they move/invest as a herd (think ‘real estate never goes down’.. in overdrive without contradictory viewpoints).[/quote]You think Chinese investors are the only ones. That IS how investors operate, because that IS how humans operate.
November 20, 2009 at 12:28 PM #485223Participant[quote=ucodegen]
Biggest problem with Chinese investors is that they have been conditioned to think like a group.. so they move/invest as a herd (think ‘real estate never goes down’.. in overdrive without contradictory viewpoints).[/quote]You think Chinese investors are the only ones. That IS how investors operate, because that IS how humans operate.
November 20, 2009 at 12:28 PM #484684Participant[quote=ucodegen]
Biggest problem with Chinese investors is that they have been conditioned to think like a group.. so they move/invest as a herd (think ‘real estate never goes down’.. in overdrive without contradictory viewpoints).[/quote]You think Chinese investors are the only ones. That IS how investors operate, because that IS how humans operate.
November 20, 2009 at 12:28 PM #485308Participant[quote=ucodegen]
Biggest problem with Chinese investors is that they have been conditioned to think like a group.. so they move/invest as a herd (think ‘real estate never goes down’.. in overdrive without contradictory viewpoints).[/quote]You think Chinese investors are the only ones. That IS how investors operate, because that IS how humans operate.
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