you are referring to the RMB USD peg? Sure products would become more expensive and possibly some production will move to Vietnam, Bangladesh as already happens. But I claim China has reached such massive manufacturing scale that it will be hard for anyone else at this point to compete with China in regards to the inexpensive production of goods, not even if the RMB gains in strength.
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China Trade War =Pullback Trigger?
- Thread starter Cdntrader
- Start date
lol, trust me if there is any nation of people who know how to suffer and still survive then its the Chinese. By the way, there are lying couple hundred billion - trillion dollars (yeah, unfortunately dollars) around that could be easily converted to eggs, fish, flour, corn, so, no need for you to be so generous as to worry about them. But wait, what if nobody wants the USD anymore? Thats now a real problem
Quote from Random.Capital:
It will hurt.
Not hurt nearly as bad as the outright starvation by the millions that will occur in China as factories are closed by the thousands.
But it will hurt.
Quote from asiaprop:
But wait, what if nobody wants the USD anymore? Thats now a real problem
Then China - with its store of "trilions" - won't be able to turn them into eggs, fish, etc. And thanks to the RMB peg, it's own currency will disappear into worthlessness as well.
Which is why, in the end, China will rant and rave in the public forum but behind closed doors will ACCEPT the default.
yeah and dont use specific words on US airplanes and airports unless you wanna know what real torture is.
Back...so if we traded USD/RMB at fair level then what? Again, it would hurt the US consumer a whole lot more than the rest of the world. And who else has the capacity to produce consumer products on a grand scale other than China from one day to another. Hence, my claim not much is gonna happen to factories in China.
Buddy, I am in China every month, reports of public hysteria and uprisings of fired factory workes are completely overblown and I dont say that because of censure. When they lose their job most go back to their farming family or find other means of employment.
Even a complete free float of the currency would not hurt the country by nearly as much as Western consumers would feel the pinch.
Back...so if we traded USD/RMB at fair level then what? Again, it would hurt the US consumer a whole lot more than the rest of the world. And who else has the capacity to produce consumer products on a grand scale other than China from one day to another. Hence, my claim not much is gonna happen to factories in China.
Buddy, I am in China every month, reports of public hysteria and uprisings of fired factory workes are completely overblown and I dont say that because of censure. When they lose their job most go back to their farming family or find other means of employment.
Even a complete free float of the currency would not hurt the country by nearly as much as Western consumers would feel the pinch.
Quote from Random.Capital:
It's the internet. Like the rest of us, you can claim anything you like.
But only if you're not posting from China.
time will tell, I believe it will gradually reduce holdings in USD denominated assets, slowly, but gradually. Same with Rusia, same with x, same with y. This will cause a lot more trouble to the US than the chief architects of this US bailout ever imagined.
Quote from Random.Capital:
Then China - with its store of "trilions" - won't be able to turn them into eggs, fish, etc. And thanks to the RMB peg, it's own currency will disappear into worthlessness as well.
Which is why, in the end, China will rant and rave in the public forum but behind closed doors will ACCEPT the default.
Quote from asiaprop:
How come something a Chinese government trade page shows is less credible than what comes out of the filthy mouths of some American trade generals?
Credible? There isn't one single government on this ball of mud that's credible.
But hey, it has always been hard to move from higher means to lower levels while knowing others will soon surpass you. Always has been, always will be...
Back in the 80's everyone was crowing about how Japan was going to eat our lunch.
How'd that work out?
Quote from asiaprop:
after all the majority of the world clearly DOES NOT speak English nor does it have to.
You couldn't be more wrong.
http://en.wikipedia.org/wiki/English_language
"All programs that do anything will be extended and more will be added (just look at the new programs coming online to facilitate short sales, they are still very much in free money for the banks mode)."
mvic
all i hear is moves to block short sales.
what free money are u talking about and what does it have to do with short sales?
mvic
all i hear is moves to block short sales.
what free money are u talking about and what does it have to do with short sales?
Quote from zdreg:
"All programs that do anything will be extended and more will be added (just look at the new programs coming online to facilitate short sales, they are still very much in free money for the banks mode)."
mvic
all i hear is moves to block short sales.
what free money are u talking about and what does it have to do with short sales?
http://www.calculatedriskblog.com/2009/09/report-treasury-to-announce-short-sale.html