I think you misdirect your troll. I just asked a question, I didn't have a solid position on what's going on in the tarriff war. It's the other guy you are disagreeing with. I'm just reading.
Can somebody explain to me how China is screwing us?
- Thread starter RGLD
- Start date
I think you misdirect your troll. I just asked a question, I didn't have a solid position on what's going on in the tarriff war. It's the other guy you are disagreeing with. I'm just reading.
You are the one talking about trolling. Sure you raised the question but, apparently, you did not like the answers. If there is anyone trolling, it would be you saying discussion of the issues is trolling? You have no clue obviously. I will add you to my blocked list!
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That is a complete load of crap. Seriously. China has an annual trade surplus with the US of $419B. China is screwed - they MUST keep the US Dollar pegged at artificially high rates versus the Yuan; they have an entire government section of the Communist Party whose sole mission is to keep that dollar peg elevated. Been that way since 1992. China HAS to put all of its' US Dollars somewhere - they simply cannot "dump" US sovereign debt. There is no other dollar denominated asset in the world even remotely liquid enough for them to park those dollar denominated account surpluses. They're screwed. And even if China wanted to dump $1T in Treasuries - guess what... the Fed would simply buy it on the open market and roll it over. The Fed has a trading desk and they do it all the time, in fact. I don't know how familiar you are with the US Sovereign Debt market, but it is by far and away the largest market in the world. Bigger than any equity market volume. In actual cash Treasuries, the average daily volume is half a trillion. If you include derivatives like futures and swaps and options - I've heard the notional value estimated at something around four Trillion per day.
China is screwed. And the Renminbi will never compete with the US Dollar or the Euro as a world class reserve currency because the Communist Party refuses to let it float and be freely traded and exchanged for other currencies in world markets with pricing set by world markets. Because if they did - the Yuan would appreciate versus the Dollar and the manufacturing cost vs shipping basis arbitrage advantage would disappear. And that would screw China.
And Mexico, and Korea, and India, and Taiwan, and Vietnam, and Malaysia (and others) are vying for low cost Chinese manufacturing. They all want to screw China.
Drug Cartels want DOLLARS, not Renminbi. The Arabs insist on taking DOLLARS for their oil, not Renminbi. Corrupt FIFA officials from all over the world were selling the World Cup in a perverse auction - and they insisted that bribes be paid in DOLLARS. Why do you think that is?
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*psst* (cheap). *flies away*
I'll take a guess...Because the Renminbi isn't worth much?
The fuk is that? How is a mouse being like a bird and flying away? I don't understand evil mice.
The hell does that mean? Are you now a bird that catches mice in your talons? Are you now an evil mouse that eats baby chickens? You confuse the populi.
Because apparently the Chinese Communist Party Apparatus must clear/monitor/control/track Renminbi transactions and IT IS EXCEEDINGLY DIFFICULT to deposit Renminbi in an overseas Bahamas bank account and then buy a Manhattan Condo for $20M USD with Renminbi and you can’t buy €900,000 in Italian marble for your new Condo with Renminbi and pay for fine artwork for your new Manhattan Condo won through auction at Sotheby’s in London with Renminbi.