Obviously, I have no clue of which position will be what the next US administration will take regarding China. For mutual benefit, and for the benefit of the global economy, let us hope that they choose cooperation rather than trade wars. If USA starts a trading war, USA will place the battlefield where less hurts China. Our former vicepremier Mrs. Wu Yi, explained that scenario very well eact time Mr.Paulson threaned with it.
This guy reflects exactly the position of what I called "the right wing" in the thread "Bretton Woods 2. How much can we expect?" http://groups.google.com/group/world-thread/browse_thread/thread/238abe7c71803a2c# As usual, he uses a US dollar centric speech. He forgets that the Yuan (or the RMB) moves up and down related to a basket of currencies that reflects the China´s foreign trade, the US dollar just is a share of it (probably not even the bigger share of it). Along the past few years, the Yuan has always gone up against such basket. It did not fall 10% against the US dollar recently, the US dollar rose against most currencies recetly between 20% to 30%, the volatility comes from the US dollar side, not from the Yuan side. Also, China agrees to balance the USA-China trade balance, but based on rise of US exports toward China, not on reduction of China exports toward USA. US economy is unable to accomplish it, basically because the problem of US foreign deficit is not China, the problem of the US economy is that its economic structure is based on consumption on top of cheap oil, not in a balance between production and consumption. Until this structure is fixed, neither the China-USA deficit, nor the USA foreign deficit with the rest of the world, nor the US debt with the rest of the world, nor the financial problem will be fixed. It is just mathematics. "Shopping and tax cuts" as macroeconomic policy only generates deficits and illiquidity crashes. To bash China these days and step aside from the real problems is just a strategy of the right wing to achieve nothing during the summit. But on Friday Nov 7th., this position has zero posibilities. The world wants results from that summit. Peace and best wishes. Xi On 8 nov, 20:03, antidefm <[EMAIL PROTECTED]> wrote: > http://www.youtube.com/watch?v=3ED9PCZjENM > > This Robert Blohm - "American economist and investment banker in > Beijing"?! Exactly what he is doing in Beijing now?! He is pretty > much hostile toward China's monetary policy. > > Here is what I have found in the Wikipedia: > > Robert Blohm (born on May 27, 1948 in Trenton, New Jersey) is an > American and Canadian investment banker, economist and statistician. > He helped expand the Japanese capital market in the 1980s to Canadian > governments, corporations, utilities and banks. In the early 1990s he > argued widely in the US and Canadian press against the economic > feasibility of Quebec's separation from Canada, particularly in a > series of opinion articles in The Wall Street Journal. He coined the > term "the internet economy" in a Wall Street Journal opinion article > by that title in 1996. In the later 1990s he published articles in the > general and trade press against restructuring the wholesale electric > industry into a centralized spot market. Blohm has since helped the > North American Electric Reliability Council develop risk-based > standards for reliably operating and planning the electric system in a > competitive market. > > Following is the embadding of the video if it works: > <object width="425" height="344"><param name="movie" > value="http://www.youtube.com/v/3ED9PCZjENM&hl=en&fs=1";></param><param > name="allowFullScreen" value="true"></param><param > name="allowscriptaccess" value="always"></param><embed > src="http://www.youtube.com/v/3ED9PCZjENM&hl=en&fs=1"; type="application/x- > shockwave-flash" allowscriptaccess="always" allowfullscreen="true" > width="425" height="344"></embed></object> --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
