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MadeInTaiwan
Participant[quote=ucodegen]
Chinese government …
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, 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
MadeInTaiwan
Participant[quote=ucodegen]
Chinese government …
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, 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
MadeInTaiwan
Participant[quote=ucodegen]
Chinese government …
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, 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
MadeInTaiwan
Participant[quote=ucodegen]
Chinese government …
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, 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
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
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
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
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
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
ParticipantAs far as I know all credit cards charge a 1%-3% conversion fee except for Capital One. We got one for our European vacation last Oct, then canceled it upon return. In general, credit cards give you the best conversion rate.
I’d buy a little Euro (no more than one or two hundred from your local bank) to tie you over for the first few days. Once you check that your bank ATM works in Europe, then just take cash out of ATM as you do here. As with credit cards, you get the best exchange rate. If you take the max out ($500 USD for my credit union), your transaction fees will amount to 1% or so. The airport exchange is the most expensive way to go.
I belong to California Coast Credit Union and I had no problems finding ATMs in Paris, Amsterdam, Brussels,
My two cents
ParticipantAs far as I know all credit cards charge a 1%-3% conversion fee except for Capital One. We got one for our European vacation last Oct, then canceled it upon return. In general, credit cards give you the best conversion rate.
I’d buy a little Euro (no more than one or two hundred from your local bank) to tie you over for the first few days. Once you check that your bank ATM works in Europe, then just take cash out of ATM as you do here. As with credit cards, you get the best exchange rate. If you take the max out ($500 USD for my credit union), your transaction fees will amount to 1% or so. The airport exchange is the most expensive way to go.
I belong to California Coast Credit Union and I had no problems finding ATMs in Paris, Amsterdam, Brussels,
My two cents
ParticipantAs far as I know all credit cards charge a 1%-3% conversion fee except for Capital One. We got one for our European vacation last Oct, then canceled it upon return. In general, credit cards give you the best conversion rate.
I’d buy a little Euro (no more than one or two hundred from your local bank) to tie you over for the first few days. Once you check that your bank ATM works in Europe, then just take cash out of ATM as you do here. As with credit cards, you get the best exchange rate. If you take the max out ($500 USD for my credit union), your transaction fees will amount to 1% or so. The airport exchange is the most expensive way to go.
I belong to California Coast Credit Union and I had no problems finding ATMs in Paris, Amsterdam, Brussels,
My two cents
ParticipantAs far as I know all credit cards charge a 1%-3% conversion fee except for Capital One. We got one for our European vacation last Oct, then canceled it upon return. In general, credit cards give you the best conversion rate.
I’d buy a little Euro (no more than one or two hundred from your local bank) to tie you over for the first few days. Once you check that your bank ATM works in Europe, then just take cash out of ATM as you do here. As with credit cards, you get the best exchange rate. If you take the max out ($500 USD for my credit union), your transaction fees will amount to 1% or so. The airport exchange is the most expensive way to go.
I belong to California Coast Credit Union and I had no problems finding ATMs in Paris, Amsterdam, Brussels,
My two cents
ParticipantAs far as I know all credit cards charge a 1%-3% conversion fee except for Capital One. We got one for our European vacation last Oct, then canceled it upon return. In general, credit cards give you the best conversion rate.
I’d buy a little Euro (no more than one or two hundred from your local bank) to tie you over for the first few days. Once you check that your bank ATM works in Europe, then just take cash out of ATM as you do here. As with credit cards, you get the best exchange rate. If you take the max out ($500 USD for my credit union), your transaction fees will amount to 1% or so. The airport exchange is the most expensive way to go.
I belong to California Coast Credit Union and I had no problems finding ATMs in Paris, Amsterdam, Brussels,
My two cents
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