Thanks a lot ! Then I was wrong. The right word is inept.
Peace and best wishes. Xi On 31 ene, 01:20, Justice <justicewithh...@gmail.com> wrote: > 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 <xieu.l...@gmail.com> 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.." <sumerian...@yahoo.com> 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 > > ... > > leer más »- Ocultar texto de la cita - > > - Mostrar texto de la cita - -- You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to world-thr...@googlegroups.com. To unsubscribe from this group, send email to world-thread+unsubscr...@googlegroups.com. For more options, visit this group at http://groups.google.com/group/world-thread?hl=en.
