Re: The Brilliance of Moving US Manufacturing Jobs to China

On 3 Dec 2005 16:48:13 -0800, "Pies de Arcilla" <dearcilla@xxxxxxxxx>
wrote:

>
>Josh Hill wrote:
>> On 3 Dec 2005 10:45:30 -0800, "Pies de Arcilla" <dearcilla@xxxxxxxxx>
>> wrote:
>>
>[...]
>> >
>> >IT ALREADY DID INCREASE! SCHUMER & GRAHAM ARE PINHEADS! They lied about
>> >what they wanted, so when they got what they asked for, they just
>> >pretended not to notice. It's very simple. They do not want a
>> >free-floating exchange rate, they want a stronger Yuan to help U.S.
>> >exporters.
>> >
>> >The change in Chinese policy appears to have been _intended_ to
>> >_appear_ to be a reaction to American pressure. I don't believe anyone
>> >can explain why it doesn't satisfy American demands for a market-based
>> >exchange rate.
>>
>> What Zen says. They floated the Yuan, but only within a government-set
>> trading range, meaning that it wasn't really floating at all. At least
>
>The range is reset every day; this is the crucial point that perhaps
>you missed!
>
>So it no more hinders currency movements than a circuit breaker on the
>stock market prevents stocks from reaching their market-determined
>values.

That's what you said. I'd want to see confirmation, because my
recollection is different. (I may of course be wrong.)

>> that's what I remember from the article I read at the time -- I
>> couldn't find a clear explanation when I went to double check.
>>
>> Also, there are other ways to manipulate currency, and the Chinese do
>> them.
>
>Buying Treasuries, you mean?

>From what I've read, they do that big time.

>> Bottom line: If they were playing fair with their currency, it would
>> increase in value. If the Asians in general were playing fair with
>> American currency, it would go down.
>
>Well, that's an article of faith among some people. I think it
>originates with the self-interest of exporters.

I don't see, in this case, how the self-interest of exporters isn't in
line with the interests of the country and its workers.

>> >The value of the Yuan increasing is NOT the same thing as the Yuan
>> >being FREE to increase.
>> >NOR is it the same as the Yuan increasing as much as some chuckleheaded
>> >senators WANT it to increase.
>> >
>> >"Snow said it would be "inadvisable" to specify what China needed to do
>> >to avoid being labeled a currency manipulator."
>> >
>> >Ergo, China can't give them what they want, because THEY WON'T SAY!
>>
>> They know exactly what they want, and so does China -- a fair value
>> for the Yuan, which could be achieved by letting the currency float
>> like everyone else's.
>
>You JUST SAID:
>-----> Also, there are other ways to manipulate currency, and the
>Chinese do
>-----> them.
>
>So it COULD NOT be achieved by letting the currency float, WHICH THEY
>ALREADY DID.
>
>Manipulating the currency markets is not easy to do. I know because the
>U.S. is obviously ATTEMPTING TO DO SO RIGHT NOW AND FAILING. That is
>what the threats and bloviation are about.

China has been doing it big time, and with success. Other Asian
countries have long done it as well. The currency market is of course
subject to speculation and other manipulations. But from my
perspective, none of this really matters: the bottom line is that the
Chinese are meddling and ignoring the rules we and others play by, and
that we are running a huge balance of trade deficit. The dollar must
go down.

--
Josh

"I'm not going to play like I've been a person who's spent hours
involved with foreign policy. I am who I am." - George W. Bush
.

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