Topic: china manipultes currency

it seems that there are laws, or somewhat guidelines to what people call unfriendly currency manipulation in order to stimulate trade in one way or another to create an advantage for that country. it also seems that obama had "slipped" in a recent speach mentioning this manipulation of china's currency. now its easy to point out the fact that china countries buy each others debt, and this pretty much has one main idea behind it and its to raise the value of a currency, which... is manipulation. every country does this that i am aware of and america is just fine with this most of the time. but now that china's economy is once again taking off, recovering from the impacts of debt worries from europe mostly, america decides to threaten trade laws if china doesnt allow thier currency to reflect inflation values, after the past few months of america "helping" with china's inflation worries.

<gasp>

is america playing china for a fool? seems so, im not an expert but it seems this is an attempt to use a rather healthy economy design to prop up our demanding deficit. and while it hurts china's exports to inflate and in turn will make almost everything cost more in america, it will make china's share of america debt worth less and easier to pay back in another form such as gold. this to me seems like an complicated form of IC market play.


from china's perspective it is comewhat confusing, it's like they are whoring out thier reseources for as cheap as possible to get a quick buck to maybe turn around and dominate the money with a large majority? to intentionally devaluate cash to keep exports strong seems to be a strong short term plan, very weak long term plan leaving the country forced to become a huge importer later.

i leave the floor open to the pro's now smile

Re: china manipultes currency

Simple answers for you.


America sells natural resources to China (for instance timber)

China resells a finished product (including using some of their resources)

China gets more from the total that the United States for selling to China.


China pools the extra money, and buys oil wells, mines, corporations, land, and military gear thus keeping the actual pool of money in China the same.

Meanwhile the pool in America shrinks, and the pool in xyz nations giving away the farm inflates.

China wins with the plan, so long as their currency remains very stable with their primary buyer... The United States.


Debt is just another way for them to cycle cash... After all there is only so much US Currency in the world... and many nations want our currency. Yet they can trade the Yuan for Treasuries, and Treasuries for more purchases (Something they have been doing).

Everything bad in the economy is now Obama's fault. Every job lost, all the debt, all the lost retirement funds. All Obama. Are you happy now? We all get to blame Obama!
Kemp currently not being responded to until he makes CONCISE posts.
Avogardo and Noir ignored by me for life so people know why I do not respond to them. (Informational)

Re: china manipultes currency

thats is a short and partial answer on trade and labour i suppose, it also touches on the inflation due to limited capital but does little to the strains on trade. i get that china uses our currency to keep it inflated but for the trade you suggested theres no definite line saying china or america made more on this trade aswell there is a lot more labour on china's side of the trade. even more a lot of the materials used by china are mined in china.

as for the american cash pool we play this game of printing cash and then turning around and saying there is this debt ceiling and if we go too far there will be deflation, which is what we want? but no now were at this imaginary limit. what we want is for china's cash to inflate while our cash remains reletively the same purchasing power in europe, while this would give both the US and europe a quick way to boost exports, pay off debts and to shift the control to our side a bit more.

i guess the intention of this post was to test the overall opinion on this media attack of china and the intended results from this attack, what america's plan of action is to gain control of this quicksand market because from my point of veiw this is a bunch of people with a lot of cash playing hardball on the bidding pool trying to bluff thier opponents out of the run.

we simply need china to stop taking economic precautions for a while and our financial sharks will dig into them

Re: china manipultes currency

For me, a 3rd party, it just looks like an American politician making excuses and blaming
the "evil" China (common enemy) for the current state of affairs.

Politicians are all the same.

I am sKoE
Do you know what the chain of command is here? It's the chain I go get and beat you with to show you who's in command.

Re: china manipultes currency

It's only a matter of time before China succeeds in its aspiration to become the world's leading economic power again.

Re: china manipultes currency

>Implying the rest of the world doesn't

Been listening to Western propaganda again?

Re: china manipultes currency

> xeno syndicated wrote:

> It's only a matter of time before China succeeds in its aspiration to become the world's leading economic power again.

Since when weren't the Chinese the leading economic power? (China's growth figures only just dropped out of the double figures I believe)...and as purchasing US raw goods, China seeks alot of raw materials from wherever it can get to continue growing (for example, Australia, and Africa). You really think China gives a damn about the US? (in fact China was very angry at the recent arms deal to Taiwan, but that's a seperate issue). Obama slipping up on the Yuan devaluation is a risky move for Obama, because he is trying to shift the balance back to the US (summarised in this thread) however, as a student of Chinese culture and International Relations, it not only shows a rather weak standpoint from Obama, but also causing the Chinese to "lose face" by implying unethical economic practice.

I am a bit fuzzy on the economic side of it all, but also wouldn't the rising PPP resulting from an increase in the value of the Yuan also increase demand for foreign luxury goods? (increasing exports in places such as Europe? [I see many stores here selling foreign wines from Australia and alot from France...also the car of choice here is BMW from what I can see]). Just seems like an SOS call to me, coupled with an insult to the people they are asking for help from tongue

I give your invention the worst score imaginable. An A minus MINUS!
~Wornstrum~

8 (edited by Justinian I 28-Oct-2011 14:03:17)

Re: china manipultes currency

China is the devil. The West needs to set aside its misguided idealism and accept the reality that is. For now the West may be able to afford its idealism of Human Rights and Internationalism, but politics does not obey the Golden Rule. It has and always will obey the Brazen Rule: get them before they get you.

The West's retard policy towards Russia compelled them to side with China to counterbalance the West, but even the Russians have seen through the Chinese. For example, they no longer sell them their best military equipment, and they declined to build an oil pipeline in to China's industrial center. Instead, they chose the less lucrative option of building a pipeline to a port, where they ship it to Japan. The Russians are obviously unhappy with China, and this is an opportunity to establish an alliance we pooped on before.

Our pointless military adventures are expensive. We need to accept that our wealth was won by blood and steel and can only be maintained by blood and steel. If we continue along the path we are going, we will be enslaved to the Chinese Empire.

No more Democratic Peace Theory nonsense. Now is the time to get back to reality by applying Realpolitik. Our weakness is why we are separated from our natural allies, why socialists rule Bolivia and Venezuela, and why the Chinese are taking over our periphery. It's so bad, we are losing Columbia, as they are working with China to build a competing canal between the Atlantic and Pacific oceans. Seriously, wtf?

Re: china manipultes currency

Idealism of human rights?! In the West?!? PAH!!!!

Liberalism (political ideology covering all western nations), has rejected the protection of human rights just the same as other nations in the world. The situation in the US social system is in shambles...the ratio of population in prison is staggering, health care systems, housing, the number of homeless...the list continues. Nations like Australia (I am Australian) only protects 2 human rights (I am comparing to the list covered by the UDHR) which is the freedom to religious expression (which is still questionable) and the right to a fair trial. The US has not fully ratified the Rome Statue, and means it is not subject to war crime charges (although I wonder who would ever be capable of bringing someone in the US to the court to face those charges). The US has warmongered for the better part of the last half century. Vietnam, Somalia, Afghanistan (both recently and aiding during the Soviet invasion), Iraq, Yugoslavia, they have also ignored trade sanctions put in place to deter human rights abuses (eg, South Africa, they sold uranium, dispute the trade sanctions, in the hopes of creating a nuclear deterent against Communism in Africa...I am not sure if this was ever accomplished though).

Now as for the rule of "Get them before they get you", this is also explained by the liberal ideology. Although liberalism is supposed to promote free elections and such, and that war between liberal states is non-existant, they are openly more aggressive towards non-liberal states and always will be (unless every nation becomes liberal then we may have peace...although at the hands of a hegemon).

As for the alliance between the Russians and China, that is a very old relationships, that has come closer to nuclear war than was seen in Cuba in the 1960's. It has always been an uneasy relationships. China also doesn't need to rely heavily on the Russian gas/oil supplies (especially when Australia sells it so cheap), whereas the Japanese rely solely on importing oil and gas (partly the reason for the attack on Pearl Harbour...the US threatened to cut the Japanese oil supply unless they withdrew troops from China, and so the Japanese attacked...or so I heard)...

China has always been interested in bolstering itself up, and never on conquest, so I doubt you will ever be enslaved to a "Chinese empire" however rely heavily on Asian economies to bail the US out of debt crisis...most definately...

I give your invention the worst score imaginable. An A minus MINUS!
~Wornstrum~

10 (edited by Justinian I 28-Oct-2011 14:36:50)

Re: china manipultes currency

Worn,

Yes, Democratic Peace Theory is a load of nonsense. Frankly, it is only consistent with the evidence because:
1. Democracy is young
2. Ruling elites in democratic countries are more hesitant to go to war.
3. Most liberal democracies are in the Western world, who are natural allies. The US won't invade Canada because of some non-existent solidarity of government types, but because our circumstances make cooperation the most sensible strategy.

And I love how democratic peace theorists utterly fail to capture historical political realities. For example, one prominent proponent said that in one period Athens and Thebes, although formally at war, never fought a battle because they were democracies. That is nonsense. In that particular war, Athens had actually been allied to Thebes, but betrayed them after the distribution of power shifted to Thebes' favor. Consequently, Athens sided with Sparta, and the reason they didn't participate in a battle against Thebes can easily be explained by their wish to be effectively neutral in order that an equilibrium could be established between Thebes and Sparta. Sadly for them, they miscalculated and the Spartans suffered a costly defeat. If anything, that example supports political realism not democratic peace.

Ever since the neocons came to power, Democratic Peace has increasingly been applied. That is one example of the misguided idealism I am referring to. It has lead to costly and irrational foreign policy decisions. We need to go back to Political Realism.

While you are right that the West's commitment to human rights has largely been selectively applied and only when it suits them, I have noticed an increase in military adventures to advance human rights when it makes no sense at the perspective of a political realist. Although, it may make sense at the perspective of democratic peace...

Re: china manipultes currency

I agree with you on that one...but that leads to a very grim world indeed...also saw you editted your previous post, so wanna comment on that also tongue

Also, with the "increase in military adventures to advance human rights", if you are referring to intervention into nations in the middle-east/africa, there is more there than just human rights. Never will a nation truly intervene on the sole basis of protecting human rights (perfect example, and potentially overused as an example, is the genocide in Rwanda). Libya was to stop the potential flood of refugees into Europe. Iraq, well there is alot of speculation with that one. Somalia? The US aided and abetted the Barre Dictatorship in Somalia before going in there to restore peace. I would love to find some really good examples where intervention was solely for humanitarian aid.

You will always be able to look at the world using a realist approach, but it by no means unifies foreign policy analysis. We have begun to see some cooperation between nations that simply cannot be truly explained by realism. The liberal peace theory is one, but also cooperation on treaties such as the Montreal Protocol. But then we see the realism shine through again with the Kyoto Protocol. But the point is, you can't rely on one theory to truly explain any 1 situation. Every possible theory should be used to understand the situation, not just using one theory.

I give your invention the worst score imaginable. An A minus MINUS!
~Wornstrum~

12 (edited by Justinian I 28-Oct-2011 18:18:14)

Re: china manipultes currency

Worn,

Well, I'm accustomed to a grim world-view so it doesn't bother me smile.

I can't think of a case where there wasn't some other tangible reason behind foreign policy decisions to intervene on behalf of human rights. However, I think it's fair to say that more Western states have increasingly been willing to commit to more reckless military adventures. Although many Western states were cautious and some remained uncommitted, I think the enthusiasm shared by some countries like France and Britain is out of character with caution and carefully weighing the pros/cons. Additionally, Bush II blatantly said he championed democratic peace, and seemed to have convinced Blair and Sarkozy, and the idea probably found considerable reception among the ruling elite in Britain.

I agree there are other factors influencing political decisions that most political realist theories are unable to account for. However, I am convinced that democratic peace is not only a complete load of bs, but has justified some of the most reckless foreign policy decisions in the past 15 years. In other words, the theory is so bad we should throw it to the flames just as we would with Fascism. As for the Montreal Protocol, I don't think it's necessarily unexplainable with realism. The fact is that the self-preservation of every state depends on the health of the planet's ozone layer, which seems compatible with realism.

Re: china manipultes currency

> Wornstrum wrote:

Since when weren't the Chinese the leading economic power?

Since, oh, I don't know, the 1800s - the opium wars?

Re: china manipultes currency

Since at least 2008 (and the GFC)&#12288;China is considered one of, if not, the leading economic power...as the topic suggests, the current economic growth in China is currently holding the world up from depression...so considering this, the original comment would suggest that they are no longer leading the world economics, but I understand your point...you don't even need to go that far back as the 1800's, you could easily look at the 1960's, wasn't until the Open Door policy and the start of private enterprise that really changed this...

I give your invention the worst score imaginable. An A minus MINUS!
~Wornstrum~

Re: china manipultes currency

i will say that there is a realignment of power happening very quickly, within the last 5 years china's currency has doubled its worth and for the recent month it has gone from 77 to 75. who knows where this will stop relative to other currencies but very soon china's grip on the market will be reduced heavily and this market nonsense will stop.

Re: china manipultes currency

No it will not. They have major inflation if the word is correct, but they also own a huge amount of the resources of Africa and a lot of the US debt.

Until fair trade is forced on them they will continue to grow

Everything bad in the economy is now Obama's fault. Every job lost, all the debt, all the lost retirement funds. All Obama. Are you happy now? We all get to blame Obama!
Kemp currently not being responded to until he makes CONCISE posts.
Avogardo and Noir ignored by me for life so people know why I do not respond to them. (Informational)

Re: china manipultes currency

and? ofcourse they are going to grow, if they didnt that would hurt the world signifacantly right now, for thier currency to gain worth(the opposite of inflation) means that we can eventually pull a china and sell for cheap

Re: china manipultes currency

@wornstrum

re: since 2008

I think China's GDP per capita is in decline, curretly, isn't it?

Re: china manipultes currency

xeno - No
The growth rate may be declining

Re: china manipultes currency

I think the sustained lower demand for China's exports and the poor levels of domestic consumption increased population have caused lower GDP per capita since 2008.

21 (edited by xeno syndicated 30-Oct-2011 00:13:10)

Re: china manipultes currency

See: here we are (2010 was about the same as 2006 in terms of GDP per Capita) according to this source:


http://www.indexmundi.com/g/g.aspx?c=ch&v=67

Re: china manipultes currency

And I bet GDP per capita or PPP will be down this year, too.

Re: china manipultes currency

"China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001"

"In 2009, the global economic downturn reduced foreign demand for Chinese exports for the first time in many years, but China rebounded quickly, outperforming all other major economies in 2010 with GDP growth around 10%. The economy appears set to remain on a strong growth trajectory in 2011, lending credibility to the stimulus policies the regime rolled out during the global financial crisis."

These were both sourced from the source of your source (that sounds awkward tongue)...who would have thought that an economy based on exports would be affected by a global economic downturn? The PPP figures are only just below the 2006 value, and trending upwards. The growth figures for last year were back in the double figures, and according to your source, the PPP GDP only declined during one year and has recovered since (with a trajectory that suggests continued growth)...

https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html

I give your invention the worst score imaginable. An A minus MINUS!
~Wornstrum~

Re: china manipultes currency

And looking at the figures, afew Asian countries PPP fell during 07 (India, Indonesia, both are also developing quickly) and began to recover afterwards...

I give your invention the worst score imaginable. An A minus MINUS!
~Wornstrum~

25 (edited by xeno syndicated 30-Oct-2011 03:16:08)

Re: china manipultes currency

I'm just saying I don't see the upward trend in PPP / GDP per capita.  I see a downward trend.  Also, I don't trust the figures of any source, really, because I don't think anybody really knows  the population of China accurately - so many people there who aren't included in census surveying.