Chinese Yuan vs. U.S. Dollar

• Cleveland Buck

  

  http://www.reuters.com/article/companyNewsAndPR/idUSSP52211220091113
  
  Pretty soon China will have to start appreciating their currency. Dollars will be sold faster than Barack's Fed can print them. Not only will the dollar get smashed, but all of the Chinese shit we buy will go up in price. Really, great news for everyone.
• PremithiumX

  I hope that when that day comes maybe, just maybe, it'll bring more manufacturing back into the states. I know it's not likely, but hey, a guy can hope.
• Cleveland Buck

  

  It won't. We will be paying $200 for a barrel of oil, and Chinese imports will still be cheaper than American overpriced, union made products.
• I Wear Pants

  Cleveland Buck, the more you post the more I get the feeling that you really don't bother to investigate things that you "learn" about our sociopolitical atmosphere.
  
  If you're going to post that article about the Yuan rising in value you might also want to post about the rally around the dollar that's happening around the world. It was the front page article in today's Wall Street Journal.
• Cleveland Buck

  

  I Wear Pants wrote: Cleveland Buck, the more you post the more I get the feeling that you really don't bother to investigate things that you "learn" about our sociopolitical atmosphere.
  
  If you're going to post that article about the Yuan rising in value you might also want to post about the rally around the dollar that's happening around the world. It was the front page article in today's Wall Street Journal.

  Yeah, a strong dollar is definitely the trend this year. A one or two day rally in the dollar proves that we have nothing to worry about. The prices of gold and oil will come back down to where demand says they should be, right? Also, I didn't say it was happening today or tomorrow, just that is imminent. Please put your head back in the sand. Thanks.
• LJ

  

  You 2 are toeing the line. Watch it with the personal attacks. Attack the argument, not the person.
• HitsRus

  

  All the U.S. really needs to do is just to show some fiscal responsibility and the dollar will strengthen quickly. Unfortunately, that seems to be a problem for those in charge......
• I Wear Pants

  Will do LJ.
  
  Based on demand and the prices in the last five years I'd say oil is probably about where demand places it.
  
  Back to the currencies, do you really think that China will allow the Yuen to rise any substantial amount if the dollar falls? It's against their interests since they own so much U.S. debt. The weakening dollar is not really a benefit to them right now. Just means they overpaid for some debt.
  
  And anyway it's unreasonable to expect the U.S. to get back to the growth of the 90s. The world economic climate is vastly different. China is no longer blind to the benefits of free(ish) trade, Japan continues to gain traction, the European Union is solidifying itself as a major economic power, India is showing substantial growth in tech and industry, and Russia isn't reeling from the collapse of the Soviet Union so much anymore. There's simply more viable competitors and it stands to reason that we'll loose some of our power.
• Cleveland Buck

  

  Based on demand and the prices in the last five years I'd say oil is probably about where demand places it.

  It isn't 5 years ago anymore. Right now our demand for oil is very weak while we are in this recession, as it is worldwide. The last time oil was this high during a recession was during the late 70s/early 80s when we also had double digit inflation, which will be coming soon.
  

  Back to the currencies, do you really think that China will allow the Yuen to rise any substantial amount if the dollar falls? It's against their interests since they own so much U.S. debt. The weakening dollar is not really a benefit to them right now. Just means they overpaid for some debt.

  I didn't say that China was going to destroy the dollar, just further weaken it. The reason the Chinese will have to appreciate the yuan has nothing to do with us, according to the article anyway. If those factors persist, they may have to substantially appreciate it, and who on earth is going to buy dollars that are backed by the full faith and credit of our printing press and $12 trillion debt when they can buy yuan?
  

  And anyway it's unreasonable to expect the U.S. to get back to the growth of the 90s. The world economic climate is vastly different. China is no longer blind to the benefits of free(ish) trade, Japan continues to gain traction, the European Union is solidifying itself as a major economic power, India is showing substantial growth in tech and industry, and Russia isn't reeling from the collapse of the Soviet Union so much anymore. There's simply more viable competitors and it stands to reason that we'll loose some of our power.

  Under our communo-fascist economic system that we have been developing for 90 years, I can't argue with anything you said here, though it really doesn't have anything to do with the original point.
• eersandbeers

  China needs the dollar to be successful right now. Our economies are entirely linked to one another.
  
  Wait until the push for a different global currency reserve gets stronger. Then we can watch as the dollar plummets.
• I Wear Pants

  We are not a communo-fascist state by any stretch of the imagination. Currently we're not fully but moving towards being a social democratic state.
• Cleveland Buck

  

  I Wear Pants wrote: We are not a communo-fascist state by any stretch of the imagination. Currently we're not fully but moving towards being a social democratic state.

  I can not reply to you without drawing the ire of our fearless moderator unless I want to type a ten page book for you. Maybe another day.
• I Wear Pants

  Reply to me all you want. I'm young enough that I'm quite fickle with my political values. I believe our moderator overlord simply doesn't want us bickering like twelve year olds like we were earlier. I assume we're allowed to point, counter-point each other though.
• LJ

  

  I Wear Pants wrote: I believe our moderator overlord simply doesn't want us bickering like twelve year olds like we were earlier. I assume we're allowed to point, counter-point each other though.

  Ha, overlord. But you are right, the more discussion we have, the better.
  
  Just remember, no one is awarded any points for "winning". This is merely a place to share ideas, keep others informed, and open others minds.
• I Wear Pants

  Bu..bu..but if there's no points. How can we tell who's in the lead?
• LJ

  

  I Wear Pants wrote: Bu..bu..but if there's no points. How can we tell who's in the lead?

  eggsactly
  
  But it's ok, sometimes we all make mc steaks
• Cleveland Buck

  

  I Wear Pants wrote: Reply to me all you want. I'm young enough that I'm quite fickle with my political values. I believe our moderator overlord simply doesn't want us bickering like twelve year olds like we were earlier. I assume we're allowed to point, counter-point each other though.

  You took the first shot at me, so I responded the way I anticipated our conversation would go. It seems you are well informed, so even if I don't agree with many of your stances on issues, I have no problem with you. I am more than happy to debate anything point, counter-point. The issue of what exactly is our economic system and how it got that way will take a LOT of debate though, and I'm far too tired to do it tonight.
• I Wear Pants

  I was mostly calling myself the party to blame there. Wasn't trying to call you out. I think we can unilaterally agree to play nice.
• dwccrew

  

  I Wear Pants wrote: I was mostly calling myself the party to blame there. Wasn't trying to call you out. I think we can unilaterally agree to play nice.

  
  If it only worked this way in Washington.