Re: US Navy could be crippled by software backdoors.

On Tue, 11 Apr 2006 17:00:50 +0300, ??? <???@???.???> wrote:

is attracting the latest
generation of semiconductor fabs. "China has taken a competitive move
using straight industrial policy to capture this sector," says one
government official. "They manipulate their currency; they've got the
[14 percent] value added tax [on imported semiconductors].


Excerpt: http://en.wikipedia.org/wiki/Renminbi
Mainland China's currency, which for the previous decade had been
rigidly pegged at 8.28 renminbi to the U.S. dollar, was revalued on
July 21, 2005 to 8.11 per U.S. dollar, following the removal of the
peg to the US dollar and pressure from the United States. The People's
Bank of China also announced that the renminbi would be pegged to a
basket of foreign currencies, rather than being strictly tied to the
U.S. dollar, and would trade within a narrow 0.3 percent band against
this basket of currencies. The PRC has stated that the basket is
dominated by the U.S. dollar, euro, Japanese yen and South Korean won,
with a smaller proportion made up of the British pound, Thai baht,
Russian ruble, Australian dollar, Canadian dollar and Singapore
dollar.

The RMB had been pegged to the USD for more than 20 years at 8.2.
When the USD was strong you didn't have too much trouble that trhe RMB
was pegged at an unfavorable rate for China. The exchange rate is
fundamentally the same at 8.2 plus or minus 2 percent. How is that
considered currency manipulation? If China does manipulate the RMB
vis a vis the USD you'll be on a wild ride like you never believe. $4
pe gal. gasoline for one.
.