US 'playing with fire' on yuan drive

[oblivious]

This Bloomberg article reviews many of the same arguments made by DUers about yuan revaluation (but by famous economists).

May 10, 2005

Restive members of the US Congress are demanding China revalue the yuan or face trade sanctions. And Bush administration officials are joining the chorus, led by Treasury Secretary John Snow's insistence "the time has come'' for the mainland to move.

Some analysts said they should be careful what they wish for.

While a rise in the yuan may lead to an increase in the exports of some US-made products, it may also lead to higher interest rates, leaner stock portfolios, more expensive shopping trips, weaker hiring prospects and lower profits at companies such as General Motors, Wal-Mart Stores, Dell and Coca-Cola.

http://www.thestandard.com.hk/stdn/std/China/GE10Ad01.html


Also related this morning in the same Hong Kong paper. This is an important comment, indicating a revaluation is almost certain, but involves 'face'(i.e. it must appear to be China's decision).

China may revalue yuan when US quiet, says Tang

May 10, 2005

China will revalue its currency "when the Americans stop being so noisy about it,'' Hong Kong's Financial Secretary Henry Tang told reporters in Bangkok Monday.

http://www.thestandard.com.hk/stdn/std/Markets/GE10Ag02.html

[ConcernedCanuk]

1. With over 4 times the population, and plenty of Nukes

.
.
.

I think it's time that the US take China a wee bit more seriously . .

Oil deals with Venezuela, - and yet not widely known, - with Canada as well, the World is saying "to heck with the USA . ."

The World was never really worried or overly upset with Iraq or Afghanistan, -

but the World is very aware now of the USA's violent method of spreading their "message"

AND WE DON'T LIKE IT

As I've said before and will continue to say

History reads

The Rise and fall of . . .

Guess who's next? !!

:nopity:

[oblivious]

2. I just wonder if it will be stage 2 in the end of the US dollar.

Stage 1: Devaluing 40 percent against the Euro and Yen.

Stage 2: Devaluing 25% against the yuan.

Stage 3: .........?

[Voltaire99]

3. China's our Sugar Daddy; careful, Congressional idiots

If China stops buying our debt, we can't function. No more cheap credit. No more outrunning the comet of our prodigality.

Of course, US politicians are hardly known for wisdom, let alone the intelligence of the average egg. Given the choice, frankly, I'd rather we elected eggs.