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Is your cash earning that much interest anywhere? No? Now that the Bank of China is allowing...

Is your cash earning that much interest anywhere? No? Now that the Bank of China is allowing Americans to make deposits, Brett Arends has five reasons to think about opening an account in yuan. It's certainly one way to hedge against an economic decline in the U.S.
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Comments (16)
  • DVW
    , contributor
    Comments (157) | Send Message
     
    Great idea! Give your money to the communists who can confiscate it whenever they want and for whatever reason.
    22 Jan 2011, 10:06 AM Reply Like
  • treadway51
    , contributor
    Comments (2) | Send Message
     
    Communists???? You should keep up with the latest... China is the greatest CAPITALIST countery in the world....now! If their banks are paying 5%/6% and ours are paying .03%... why should anyone keep there money here. At the very least you need to put it somewhere where Obama can't get at it.
    22 Jan 2011, 01:24 PM Reply Like
  • DVW
    , contributor
    Comments (157) | Send Message
     
    There, or their?

     

    Either way, you can believe what you want. Have you been to China? I doubt you have. Go see it yourself. It's quite bubbly and a facade outside the major cities.

     

    Also, consider the risk curve. They're paying 5% for a reason. Risk is commensurate with return. Never forget that. Never!

     

    If you want to speculate with your money in China, feel free, pull the handle, but understand the risk when dealing with a government that owns most of the businesses in the country, prints more money than we do and engages in deceptive trade practices (not to mention human rights abuses). Good luck, man!

     

    Obama hasnt really come after my money yet. My marginal tax rate is the same as it has been. If you make money on China investments, you still have to report it. If that changes, I'll change how I invest!

     

    The Chinese bike I bought my kid for Christmas has fallen apart like just about anything else I've bought from there. I expect Chinese investments to be the same. The wheels are gonna fall off one day.
    22 Jan 2011, 05:12 PM Reply Like
  • Tomcat101
    , contributor
    Comments (963) | Send Message
     
    Isn't GM making cars in China now?

     

    I'm sure the quality will be top notch- not.
    22 Jan 2011, 06:16 PM Reply Like
  • wyostocks
    , contributor
    Comments (9028) | Send Message
     
    For DVW

     

    "The Chinese bike I bought my kid for Christmas has fallen apart like just about anything else I've bought from there."
    Perhaps its the driver and not the vehicle.

     

    "If you make money on China investments, you still have to report it. If that changes, I'll change how I invest!"
    Please explain that one. So if its tax free to invest in China you'll invest there?
    If its tax free to move there you'll move there? Sorry they don't want you. You are stuck with O.

     

    fake, phony, fraud !!!!!!!!!!!!!!!!!
    22 Jan 2011, 09:09 PM Reply Like
  • DVW
    , contributor
    Comments (157) | Send Message
     
    Yeah, bust on a little kid. Nice!

     

    My point, which you apparently missed, is my tax rate hasnt gone up under Obama, neither has yours, so currently I'm not worried about him. When the tax rate becomes favorable to invest elsewhere, then I will. Right now the risk of investing in China is far beyond the interest rate they pay on deposits.

     

    I never understood why people bitch and moan about things that have no consequence and blame others for their own shortcomings.
    23 Jan 2011, 08:38 AM Reply Like
  • bfstrog
    , contributor
    Comments (74) | Send Message
     
    I'll stay in dollars to hedge against a decline in the frothy chinese economy
    22 Jan 2011, 10:14 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3533) | Send Message
     
    Plenty of good currencies to move your dollars to. Why mess with the yuan?
    22 Jan 2011, 10:21 AM Reply Like
  • The Geoffster
    , contributor
    Comments (4132) | Send Message
     
    Yuan to save some money? Buy PMs.
    22 Jan 2011, 10:32 AM Reply Like
  • Vuke
    , contributor
    Comments (1666) | Send Message
     
    Apparently the Chinese people are putting a great deal of their money into silver, gold and platinum. In a race to the bottom in all paper currencies what is the point point in changing lanes?
    22 Jan 2011, 10:44 AM Reply Like
  • bertil
    , contributor
    Comments (74) | Send Message
     
    The US decline is over - that's why the Chinese is "opening up".... or why? I'd just say - NO thanks.
    22 Jan 2011, 10:56 AM Reply Like
  • bfstrog
    , contributor
    Comments (74) | Send Message
     
    Hu thinks this is a good idea?
    22 Jan 2011, 11:08 AM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4503) | Send Message
     
    Yuan or yawn?
    22 Jan 2011, 11:11 AM Reply Like
  • mike mohr
    , contributor
    Comments (452) | Send Message
     
    Never trust communists. Buy physical gold and silver.
    22 Jan 2011, 12:41 PM Reply Like
  • bob adamson
    , contributor
    Comments (4559) | Send Message
     
    This is part of a multifaceted recent initiative by China to slow the inflow of foreign currencies, particularly USDs, into China which, by increasing China’s foreign reserves, threaten to up the Yuan exchange rate faster than the Chinese authorities want. With domestic inflation threatening the Chinese economy, these authorities want to be able to increase interest rates (but not thereby cause the Yuan to appreciate against the USD at a speed that might undercut the competitiveness of Chinese products in competition on international markets against those of other low cost producers).
    22 Jan 2011, 01:53 PM Reply Like
  • Tomcat101
    , contributor
    Comments (963) | Send Message
     
    Just take your money and flush it down the toilet.
    22 Jan 2011, 01:57 PM Reply Like
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