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 ![]()