CHINA: "Nobody here wants the lowly American dollar anymore"

[El Pinko]

http://www.latimes.com/business/la-fi-cheapdollar19feb19,1,4692293.story?ctrack=8&cset=true

A sinking feeling for the dollar in China

By Don Lee, Los Angeles Times Staff Writer
February 19, 2008
SHANGHAI --

"No, I don't want dollars," he snapped, shooing them away with a wave of his pudgy hands.

Nobody here wants the lowly American dollar anymore. Not businessmen, not bankers, not even the "yellow bulls" like this man, who has been a black-market trader for years and whose presence in the lobby of a large state-owned bank is tolerated, oddly, by its managers.

As the government has allowed the value of the Chinese yuan to rise faster against the greenback in recent months than it had before, there's been a mad dash by many more people to sell their holdings. Money-changers are so flooded with dollars that they refuse to take any more. It's too risky, they say, because the American currency's value is slipping every day.

In 2007, the yuan appreciated almost 7% against the dollar, and most observers expect the pace to quicken this year. Since Jan. 1, it's risen a further 2%.

[islandmkl]

1. I have maintained for years that if you are Wal-Mart...

or any other mega-multi-national corporation...Which would you rather have: 2 Billion Chinese customers or 300 Million American customers? (Don't even figure in India)...it's just math and a matter of time

[ThomWV]

2. But you have to ask yourself, who will be making the cheap goods for the Chinese?

[Virginia Dare]

3. The Africans of course..

they're already outsourcing to Africa as we speak.

[islandmkl]

6. the same people who are making things now...

it is the emergence of a 'middle class' buying-power wise that will be the buyers...the math is in the numbers of poor workers available throughout Asia and the Pacific-Indian Ocean regions. There is a very long road for that part of the world to become even moderately 'middle class' by any definition...but the population mass, on all levels of income, is so much greater than here in the USA that it will soon offset the sheer volume of American wealth.

[Virginia Dare]

4. The American consumer has outlived it's usefulness..

just like the American worker did--what happens to us now?...:scared:

[Systematic Chaos]

7. We start learning to grow our own food again.

If we're lucky, we'll only have to travel back in time to about 1870. If not, then maybe we'll regress to 1670. :(

[Virginia Dare]

5. Heckuva job, shrubya....n/t

[gratuitous]

8. Not true!

Chinese women still appreciate the American dollar. Twenty or thirty dollars rolled together make a cheap and effective tampon.