Teutonic Knight

Chinese Currency Revaluation: Could It Hurt America?

The Yuan is not a widely traded currency in world markets. I am surprised by Mark and Tim (Geithner) statements that the Chinese government manipulated its currency. Isn't that obvious? They (the Chinese leaders) know only too well that if that currency is floated, speculators will rush in and the ensuing destablization would not only be their nightmare but America's. Ironically it is only through authoritarian control being exerted that the Yuan remains what its value is to this date.

Sure, by the same token, they (the so-called manipulators) could revalue the Yuan up. Why would they do us a free favor? For nothing? The answer lies in give-and-take, and quiet diplomacy, not bullying.

Personally, I am disappointed by Mr. Geithner's performance at his confirmation hearing. Albeit his touted having lived overseas, his seemingly unintelligent remarks showed his lack of depth of understanding the Chinese leadership, and his lack of tact in diplomacy. As we know, anyone, when he/she is pushed to a corner would only fight back at all cost. And this was exactly what happened as Premier Wen responded.

I sincerely hope that the administration would in the future seek advice from true Chinese affairs experts vice those who just having dined in a few Chinese restaurants and call themselves one.

In This Economic Crisis, We Are All to Blame

The Pragmatist Capitalist,

Yours is a good article and in my books it deserves an A -. Congratulations!

However, the title of your article might perhaps need some minor adjustment. The "...All..." word seems to be too inclusive. Now I am not being self-righteous, and my comment here is truly most sincere.

The story was that sometime in 2007 when I first heard of the phrase "sub-prime mortgage", I couldn't quite comprehend its meaning then. I thought the "sub" would mean to describe a special preferential premium rate at below the usual prime lending rate for mortgages, as in the case of my HELOC which is at a good half-percentage below the prime. (Don't laugh please, this is a true story; ordinary citizens like myself and my family have enough day-to-day chores to contend with, pay the bills, feed and wash ourselves, make the boss happy, and take the garbage to the curb on time...). Obviously what transpired into our current meltdown invoked me to learn all about CDS, MBS, and all that rich man's game.

Again, thanks for an inspiring article.

Teutonic