huangthomas

Obama Does Little to Ease U.S.-China Economic Tensions

I still don't understand why Obama wants to go to China to be humiliated. He was served Chinese "cold dishes": 1) A carefully staged town hall meeting. 2) A censored press interview. A few pages are missing in the press release. 3) A lifeless joint press appearance with President Hu. Barack, please stay home. Your populist style and silver tongue can only go so far. There are no foreign markets for them, even with free trade, especially across the Pacific Ocean.

The Yuan as a Swap Currency

In international trade, the buyers usually have power to dictate the pricing currency to avoid risk of foreign exchange fluctuation. Since US importers are the major buyers in international trade. the $ prevail. As the Chinese import volume increases, the Chinese buyers gain the similar power to dictate the pricing currency. Since Yuan is not a free currency, Chinese government has to guarantee certain quantity of Yuan to be exchanged into foreign currencies.

China Needs to Look Within for Solutions to the Falling Dollar

American dollar is American currency. China may hold a little more than one trillion of US dollars. Why China should be concerned or responsible for our own US$ problem? Mr. Morici, go ahead and suck your thumb and the problem may go away.

Currency Manipulation, China vs. Hong Kong

Learn a little bit of history won't hurt you. Hong Kong always has her own currency even under hundred years of British colonial rule. When Thatcher decide to return Hong Kong to China in 1980's, without the protection of a colonial master, the Hong Kong dollar fall like a stone off the cliff. The Hong Kong government was forced to peg her currency to US$. It is the survival of a currency is at stake not the trade advantage. Hong Kong currency is a free currency, CNY is not. Therefore HK$ cannot peg to CNY even today.

A Crisis with Chinese Characteristics

When Clinton was asked what he did when he first entered the White House in 1993. His answer is "campaign for re-election". Obama will continue his campaign rhetoric for another 4 years.

Should We Care If China Is Manipulating the Yuan?

A quick fix to devalue US$: ask China not to purchase US treasuries, the dollor will fall like a stone off cliff.

In the Year of the Ox, Will Things Be Bullish for FXI?

Big Mac Theory? Does anyone find beef patty in hamburger in China. I ask for it, but I only get pork, not beef.

In the Year of the Ox, Will Things Be Bullish for FXI?

GDP is adjusted for inflation already. World Bank data not only adjusted for inflation but also adjusted for PPP (purchasing power parity).

Taiwan is not an emerging economy anymore. It is a developed economy, It is elevated to the current status with South Korea.

Banks in FXI are all large solid state owned entities. Only Bank of China has $5 to 10 billion CDO. They are all healthy. I would not worried about Chinese banks.