athena

Did 2008's $677 Billion Trade Deficit Cause the Recession?

THE CRASH WAS CAUSED BY NAKED LEVERAGED DERIVATIVES TRADING-

see Oil.

Should We Care If China Is Manipulating the Yuan?

Treasury debasing the currency is not their cure, it is their excuse.


On Jan 27 03:26 AM icandoitdon wrote:

> i think you need a bit of help on this one dr. perry.
>
> the dollar has lost value against the yuan...not gained value. a
> declining dollar (and appreciating yuan) makes imported chinese goods
> more expensive in the u.s....not cheaper. conversely, it renders
> u.s. exports to china cheaper when paid for using their appreciated
> currency.
>
> the fact that china's currency has gained significant value against
> the dollar but they still run huge trade surpluses with the u.s.
> suggests to geitner that their currency should be stronger still.
> that's what the u.s. is complaining about. geitner believes the
> chinese are keeping their currency weak in order to goose their exports,
> which is reflected in the huge u.s. trade deficit with china. he
> wants to reduce that deficit, which a stronger yuan will help achieve
> because it will spur our exports and reduce our imports of chinese
> goods...or so the theory goes.
>
> china is pissed because their currency has already appreciated substantially
> and they feel they're being used as a scapegoat for u.s. economic
> problems.
>
> every secretary of the treasury i've ever seen has adopted the notion
> that debasing our currency would be the cure all for our trade and
> balance of payments problems. it hasn't been. it never will be.

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