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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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 Posted: Mon Nov 26, 2007 4:31 pm Post subject: |
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| adeline wrote: |
| Wangja wrote: |
| adeline wrote: |
| they undervalue their own currency, this promotes trade. sure you could buy it for more, but that is like paying $8 for a sandwitch when you can just walk around the corner and pay $2, who would do that? |
What you may not k now is that the USA has an export trade similar to China (USA 1.02 trillion, China 970 billion) but the real imbalance comes not from China but other countries.
The USA imports alomst twice as much as it exports. 1,86 trillion a year. 840 billion a year more than exports - the Chinese are not responsible for that. The share of USA's world trade has shrunk from 19% in 2000 to 14% now. That is one of the (many) reasons for the USD weakness. |
???
when did I say anything about trade deficit? this discussion is about currency trading and the exchange rate...maybe you should read it |
If you do not want to talk about trade - and promotion of trade - why refer to it in your post? |
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adeline
Joined: 19 Nov 2007
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| Posted: Mon Nov 26, 2007 4:45 pm Post subject: |
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| Wangja wrote: |
| adeline wrote: |
| Wangja wrote: |
| adeline wrote: |
| they undervalue their own currency, this promotes trade. sure you could buy it for more, but that is like paying $8 for a sandwitch when you can just walk around the corner and pay $2, who would do that? |
What you may not k now is that the USA has an export trade similar to China (USA 1.02 trillion, China 970 billion) but the real imbalance comes not from China but other countries.
The USA imports alomst twice as much as it exports. 1,86 trillion a year. 840 billion a year more than exports - the Chinese are not responsible for that. The share of USA's world trade has shrunk from 19% in 2000 to 14% now. That is one of the (many) reasons for the USD weakness. |
???
when did I say anything about trade deficit? this discussion is about currency trading and the exchange rate...maybe you should read it |
If you do not want to talk about trade - and promotion of trade - why refer to it in your post? |
i don't see how explaining the reason for undervaluing your own currency leads to the discussion of a trade deficit, because both of them lie under the vast umbrella of economics? and furthermore, existence of a trade deficit doesn't refute the fact that the chinese are undervaluing the yuan. please don't imply that i am ignorant, because we are not talking about the same thing. |
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aaabank
Joined: 27 Feb 2007
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| Posted: Mon Nov 26, 2007 9:17 pm Post subject: |
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| sojourner1 wrote: |
| I understand it used to be pegged to the US dollar up until like July 2005 and now it is pegged to a number of currencies, but America seeks to get it to float at market value now. China says it's too early to float their currency, but over time China will allow its currency's exchange rate to increasingly reflect market value. |
Sort of got it right...
(5 year chart of USD~China Yuan)
http://ichart.finance.yahoo.com/5y?usdcny=x |
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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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| Posted: Mon Nov 26, 2007 10:42 pm Post subject: |
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| adeline wrote: |
| Wangja wrote: |
| adeline wrote: |
| Wangja wrote: |
| adeline wrote: |
| they undervalue their own currency, this promotes trade. sure you could buy it for more, but that is like paying $8 for a sandwitch when you can just walk around the corner and pay $2, who would do that? |
What you may not k now is that the USA has an export trade similar to China (USA 1.02 trillion, China 970 billion) but the real imbalance comes not from China but other countries.
The USA imports alomst twice as much as it exports. 1,86 trillion a year. 840 billion a year more than exports - the Chinese are not responsible for that. The share of USA's world trade has shrunk from 19% in 2000 to 14% now. That is one of the (many) reasons for the USD weakness. |
???
when did I say anything about trade deficit? this discussion is about currency trading and the exchange rate...maybe you should read it |
If you do not want to talk about trade - and promotion of trade - why refer to it in your post? |
i don't see how explaining the reason for undervaluing your own currency leads to the discussion of a trade deficit, because both of them lie under the vast umbrella of economics? and furthermore, existence of a trade deficit doesn't refute the fact that the chinese are undervaluing the yuan. please don't imply that i am ignorant, because we are not talking about the same thing. |
Where did I imply you were ignorant?
You said a weak yuan increases trade.
That invites a discussion on trade.
The US is weakening its dollar for the same reason. Perhaps. |
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