waf76

Why Krugman Is Wrong About the Yuan

I have to agree with this article. Besides war, what does the US export?

Dollar vs. Yuan: Exchange Rates Aren't the Problem. Or the Solution

How can China dumping the dollar possibly hurt them more than it hurts the US? Impossible. They lose say 30% of their war chest. We see commodity prices explode, higher interest rates, lower real wages, more foreclosures, under-water loans...


On Nov 16 08:46 AM Tetrapod wrote:

> Thanks for the article.
> I agree that the currency peg isn't everything, but I think removing
> it is a pre-requisite to any healing of the world's economic system,
> especially that of the US.
> China values jobs over wealth, and thus far, the US has been willing
> to allow China to steal our core manufacturing jobs using their artificially
> suppressed Yuan.
> I think that our two governments are currently engaged in a big game
> of Chicken (see seekingalpha.com/user/...). The
> US is intentionally weakening the Dollar, to try to break China's
> peg. China refuses to relinquish their death-grip. Sure, a badly
> weakened dollar will hurt the US, but it will hurt Beijing even more,
> as they are forced to buy more and more weakening dollars to keep
> their currency artificially low. The ones who are getting hurt the
> most are Europe and Japan, as their currencies are being forced up
> to unsustainable levels.
> Until either Washington or Beijing relent, it's going to be a very
> ugly, but necessary contest. I believe we have the upper hand on
> this one, as we can print money faster than China can buy it all,
> and if China dumps the dollar, it hurts them more than us.

China Nixes Obama's Balanced Trade Rhetoric

They are in a position of power and while helping us may help them, they're doing pretty good without it and long term they can really strike a blow to us by not being too accommodating...if I'm China, I keep the yuan pegged lower to the dollar while my massive surplus continues to increase while the economy in the US gets fundamentally worse with the weaker dollar (which hurts my war chest but so what, minimal impact in the long run), huge financing costs, credit card defaults waiting in the wings, no housing recovery, and no job creation on the horizon...

China's Credit Bubble and the Balance of Trade

I think it does matter but if you get your news from the NY Post then you're a dinosaur.


On Aug 21 02:15 PM Harry Tuttle wrote:

> I don't see why it matters who he is. The ideas should stand on their
> own.

China's First Step Towards Bilateral Currency Swaps

the birth pangs of a new world, lol..

Is It Time to Buy? What History Shows

The author makes some valid points. It is best to buy throughout the year and not go "all in" at any moment. I think due diligence is key, look for companies that are best in class and avoid the #2's and #3's of a particular industry. The best in class stocks are more likely to retain their value during any periodic sell off than it's competitors and will lead the way onto recovery. While recovery is probably a way off it is better to start building positions now. Again, not going "all in" at any particular moment is critical as you need to allow yourself some flexibility to pick up even cheaper stocks if the opportunity presents itself. If you are confident in the stocks you have invested in and they go down then buy more.

China Gets It Right, But Hurts America

dr doolittle,

Georgia invaded South Ossentia, Russia responded. This is common knowledge to informed society. I can't for the life of me understand how NATO has reached Eastern Europe. That's the real joke. It's a problem of our own making. However, Russian markets paid dearly for responding.

As far as China's stimulus package, how can one really compare it with America's? China has way more options than us. When you are leveraged to the tilt your options are limited. You dont go with the best option, you go with the least worst or the politically correct one. We would have been better off passing no bailout.

China's Looming Hangover?

The Olympics is actually an interuption to China's everyday business. Once the Olympics are over their cars will back on the on the streets, factories will be running, and people will back to work instead of watching the Olympics, which is very meaningful to the Chinese. I expect a bounce.