inept - a. Displaying a lack of judgment, sense, or reason; foolish: an inept remark. b. Bungling or clumsy; incompetent
Adj. 1. inapt - not elegant or graceful in expression; "an awkward prose style"; "a clumsy apology"; "his cumbersome writing style"; Inept -- especially when it relates to judgment or reason. Inapt has more to do with style. On Jan 26, 9:05 am, xi <[email protected]> wrote: > It is always interesting to find a Western economist that is not > severily brainwashed. Thanks a lot for your post Sumerian. > > Questions: > > I use to call those parrot-economists "inapt" while this athor call > them "inept", which is the right word? > > Also, I call those brainwashed Westerners "China-haters" while this > author calls them "China-bashers", which is the right word?. > > Peace and best wishes. > > Xi > > On 26 ene, 11:11, "Sumerian.." <[email protected]> wrote: > > > > > Instead of these depreciating dollars being used again and > > again, in that back-and-forth flow of trade, those dollars have been removed > > from global markets – and replaced with renminbi. > > > > > > http://seekingalpha.com/article/184229-why- china-s-about- to-end-dollar- > > peg > > > Why China's About to End Dollar-Peg > > by: Jeff Nielson January 25, > > 2010 | about: UDN / UUP / CYB / CNY > > > Jeff > > Nielson > > > > > Having received several comments and questions from readers about the future > > of China's monetary policy, which “pegs” the price of the renminbi to the > > U.S. > > dollar, that usually serves as a good indicator that this is a topic worthy > > of a > > more detailed discussion. > > > The general attitude I have encountered (which is obviously fueled by how > > the > > mainstream media chooses to report this issue) is that China's government is > > likely to retain the dollar-peg either because a) that has been its policy > > throughout the last decade; or b) that China is somehow “trapped” into > > maintaining the “peg”. I firmly believe the exact opposite: that China's > > government is very close to abandoning the dollar-peg, and (in fact) has > > made a > > multitude of preparations to do so. > > > Obviously, the first and more simpler basis for believing the dollar-peg > > will > > continue is easiest to address, so I will begin with that. While it can > > always > > be seen as simplistic to conclude that some trend will continue, simply due > > to > > some form of “inertia” (or just habit), we live in a universe where inertia > > is > > one of the most dominant forces. > > > Thus, the “inertia” argument must always be considered carefully. I would > > argue that the appropriate way to conduct such an analysis is to look at > > what > > caused a particular event/trend (in the first place), and whether those > > causative factors still exist. Once any particular trend (especially an > > economic > > trend) is no longer being driven by anything other than “past practice”, > > than > > the probability that such a trend is about to end rises considerably. > > > Looking back to when China first chose to link its currency to the U.S. > > dollar in this manner, in April of > > 1994, there are several obvious factors to list. First of all, China had a > > much less-mature economy. It was a smaller economy, in absolute terms. It > > was > > much earlier in the major transition from a primarily agricultural, peasant > > population to a much more urbanized, 21st century society. > > > Because of this, it lacked the population centers and distribution networks > > which must be present before a stronger, more consumer-oriented domestic > > economy > > can take hold. In turn, lacking a large domestic economy, its rapid > > industrial > > expansion was inevitably dependent on continued strength with its exports. > > > What China already did have was a population with rapidly rising incomes, > > large pools of savings, and a manufacturing base that has clearly > > established it > > as the new, global leader in many categories of production. In other words, > > China possesses many of the same characteristics today as were seen in the > > U.S. > > economy – just before it became a global, consumption- juggernaut. > > > While dogmatic idealogues may choke on the notion that China is “following > > in > > America's footsteps”, China has long since stopped being a “communist” > > nation in > > any remotely literal sense. Unfortunately, many of the people who insist on > > using labels, use the wrong ones, time and time again. > > > “Communism” and the sort of breath-taking industrial expansion currently > > taking place in China are simply not compatible. While “communism” may not > > prevent the leading Communists from setting aside a larger piece of the pie > > for > > themselves, it has always prevented the amassing of large personal fortunes > > through open commerce – which is officially anathema in any true, communist > > society. > > > Obviously, the China of the late-20th and 21st centuries has engaged in a > > complete ideological reversal, and officially endorsed the concept of > > individuals seeking to prosper through their own efforts – something which > > we > > “capitalists” have always considered a trait which separated us from all > > “communists”. It is important to be clear about this point, since one must > > assume that the endless rants of the China-bashers are fueled (for the most > > part) by their failure to understand the changes which have taken place in > > both > > its economy – and its society. > > > Clearly, many of the factors which existed at the beginning of China's > > dollar-peg have changed considerably. China is now the world's > > second-largest > > economy – having leapfrogged nations such as Japan, and the world's other > > exporting-powerhous e: Germany. With this economic growth being largely > > based > > upon manufacturing, this means that there has been a great deal of > > additional > > wealth created in China's economy, further boosting both incomes and savings > > (i.e. cash-flow, and investment capital). > > While many myopic observers of China continue to conclude that China lacks > > enough domestic demand to reduce its reliance upon exports, not only is it > > the > > second-largest economy, but its domestic economy has been exploding. An > > analysis > > of China's economy published by the Harvard Business School (.pdf) in > > October of 2008 is highly illuminating. > > > In 2007, the last year in which China's economy was supposedly being driven > > by exports, China's 11% growth was achieved through contributions of 5% > > growth > > from domestic consumption, 4% growth from investment, and a puny 2% growth > > from > > exports. That's right, in the year before China began to seriously move away > > from “export dependence”, those exports accounted for less than 20% of > > China's > > growth. > > Furthermore, even when Chinese exports were at their peak, the “dependence” > > on mature (and sagging) Western economies was never what is pretended by the > > China-bashers. Together, exports to the U.S. and Europe accounted for less > > than > > half of China's total exports. > > > Yes, those levels are falling further – and that is great news for China's > > economy. Less and less of China's goods are being paid for with Western > > IOU's > > (of highly dubious worth), while a greater and greater percentage of Chinese > > exports are being paid for with cash: the trade surpluses of other > > developing > > economies. Only the warped minds of the China-bashers could construe this > > shift > > to paying customers as being “bad” for China's economy. > > > I could go on and on about China's domestic economic strength, but there is > > much more material to cover. Those interested in more reading on this area > > could > > refer to a couple of previous commentaries (“China's > > Problem: Too Much Money”, “Soaring > > retail sales in China demonstrate economic shift”). > > > Just as China's government has rapidly (and admirably) prepared China's > > domestic economy to replace some of the demand for its exports through > > increased > > domestic consumption, so too has China been rapidly preparing the renminbi > > to > > take over as “reserve currency” from the U.S. dollar. This has taken the > > form of > > reducing the use of U.S. dollars in global trade, combined with shoring-up > > the > > “reserves” with which it backs its own currency. > > > The move to reduce the use of U.S. dollars in trade has been a two-part > > process. While China has engaged in a long series of bilateral trade > > agreements > > to boost its share of global trade, it has simultaneously inked numerous > > “currency swaps”, supplying its trade partners with renminbi to use in their > > future trading – and permanently excluding the U.S. dollar from those > > bilateral > > relationships. > > > Indeed, inept Western analysts point to the large hoard of U.S. dollars > > still > > in China's possession, and conclude (erroneously) that the Chinese > > government is > > still increasing its holdings of U.S. IOU's through “buying” its debt. In > > fact, > > such accumulation has almost stopped. > > > China is willing to take whatever “hit” that it must on the U.S. dollars > > which it is holding (through currency swaps), because it is effectively > > “sterilizing” global trade from the cancerous effect of the biggest flood of > > greenbacks in history (and the horrific inflation they would cause). > > Instead of > > these depreciating dollars being used again and again, in that > > back-and-forth > > flow of trade, those dollars have been removed from global markets – and > > replaced with renminbi. > > > The second aspect of China's monetary campaign is to improve the “backing” > > of > > the renminbi through a “hard asset”: gold – instead of the worthless paper > > of > > Western bankers. Indeed, this is clearly the favorite means of China's > > government to rid itself of dollars – by swapping them for gold. Now, every > > time > > the anti-gold cabal drives down the price of gold a few percent, the Chinese > > government steps in, buys the cheap gold, and rids itself of unwanted > > dollars. > > > The only problem with this program (from the perspective of China's > > government) is that it is holding at least one hundred excess U.S. dollars > > for > > every dollar of bullion which the cabal still has left to dump onto the > > market. > > More generally, with other central banks taking the “cue” from China (and > > India) > > to accumulate gold reserves, China must now compete for limited gold > > stockpiles > > with several other central banks (and, soon, dozens of them). > > > Having detailed China's thorough preparations to abandon the > > ... > > read more » -- 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]. 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