Mr. M. Lobo writes:
"The US sold their debt to the Chinese and now want to tell the Chinese that
the
Chinese currency is over valued??
The Chinese currency is backed by enormous reserves of the US dollar.......
Personally, I feel that there is only one outcome to printing more and more
money. The value of that currency falls.
All other charts, graphs, etc, become nothing more than a side show."
Mr. Lobo:
Links are provided in support of the statements made in the main body of the
note. It is standard practice in public fora. Otherwise one has to do ones own
due diligence to separate the wheat from the chaff. For instance can you
support
your earlier statement that "The US sold their debt to the Chinese and now want
to tell the Chinese that the Chinese currency is over valued??"
I explained in my note with supporting evidence (links) that in reality the
opposite is true i.e. the Chinese currency is undervalued about 40% wrt the
USD.
As far as printing more money, it seems to be a race to the bottom with every
country trying to gain a trading advantage by debasing their currency. Can
you explain why minimum wage(current levels may be somewhat different and I am
not providing any links or tables since you do not appreciate them) in China is
$0.80 USD /hour, $0.12 USD/hour in India and $7.00/hour in the US? All the
Multi Nationals Corporations (MNCs) want to operate out of the lowest wage
country and this impacts employment. So when all the jobs go from high wage
regions to low wage regions millions of people are unemployed in the high wage
country (read US), as a result less taxes are collected, huge budget deficits
come in play and Monetary policy (read printing money) is the resulting
outcome. This money printing activity would ordinarily close the wage gap but
as
you probably know, the other countries intervene quickly in the currency
markets
with their own money printing (example Japan did so last week) in order to
maintain the status quo.
So with all this money printing going on, astute individuals invested in Gold
(gold at $1700????) must celebrate. With that in mind here is to you.
http://www.youtube.com/watch?v=SzlpTRNIAvc
Best Regards.
E. DeSousa
