Every now and then I like drama. This is one of those times. There's no need to panic though. CMCTABIFA is just my way of saying that Currency Manipulation Conspiracy Theories Are Back In Fashion Again.
UPDATE 2-China's yuan "manipulation" an issue -Geithner
There is already unhappiness in the U.S. Congress with China's perceived manipulation of its yuan currency, which critics argue is a major contributor to global trade imbalances.
The value of their paper currency vs. the value of our paper currency is "perceived" to be manipulated. Yeah, that's it. I'm sure of it. It doesn't even matter if it is actually being manipulated. All that matters is that it is perceived to be.
Don't believe me? I admire your skepticism!
May 11, 2006
Treasury Report on China Currency Policy Angers U.S. Lawmakers
The Treasury, which has repeatedly said it wants China to loosen its grip over the value of the yuan, chose yesterday to avoid a direct confrontation. While China hasn't made enough progress, it isn't deliberately seeking an unfair trade advantage with its currency policies, the Treasury said in its semiannual report on the practices of U.S. trade partners.
What? Where does their trade advantage come from then? Please don't tell me that they have a billion low paid workers willing to do our jobs cheaper than we will and that we have actively encouraged the behavior by outsourcing our jobs to them. That's just crazy talk.
Preeg estimates that the value of the yuan, a denomination of the renminbi, is being deliberately held at 40 percent less than its fair market value against the dollar, giving Chinese goods a competitive advantage.
If the Yuan was so undervalued, too bad we didn't just pay our workers in Chinese currency. It would be like getting a 40% bonus. While we were at it, we should have all learned Chinese, learned to enjoy rice, started riding bicycles to work, and learned to accept a much lower standard of living in this modern highly competitive global economy. Just think how much better off we would have been.
November 11, 2004
China ends 'bicycle kingdom' as embracing cars
The reasoning behind doing away with registration, which is expected to occur nationwide, is that the bike has been downgraded from one of the most significant family purchases some 20 years ago to a cheap machine used mainly by the poor.
One has to wonder if China's recent stock market activity hasn't changed the situation somewhat (see below). Perhaps the cheap machine used mainly by the poor will make a serious comeback.
Despite this, it is not yet final curtains for the two-wheeler, the authorities insist.
For once, I was finally in complete agreement with the authorities. We couldn't all drive cars. Somebody is going to need to ride bicycles. It was either us or them.
January 2, 2009
Bicycle makes a comeback in China, for fashion, health
Along with the cycling fashion, there is a boom in bicycle sales, especially in sales of up-market bicycles.
"Two years ago, we sold about 70 bikes at best in a month, but now over 100 per month," says Xu Quansong, a salesman at a franchised mountain bike store near the West Lake in Hangzhou.
The bicycle is making a comeback thanks to fashion and health. It has absolutely nothing to do with their massive stock market collapse. Wink wink, nudge nudge.
January 22, 2009
More pain seen for China stocks before recovery
SHANGHAI (Reuters) - China's stock market, the worst performer of the world's major markets last year, faces more bad news from grim corporate earnings in the coming months, but signs are pointing toward a recovery starting in the second quarter.
What points to a recovery? Good old American non-currency manipulation know how. That's what.
The Chinese central bank is now pumping hundreds of billions of yuan into the banking system every month, in large part by virtually halting its bill issuance in its open market operations and letting redemptions of maturing bills automatically inject funds into the market.
You don't believe that this is good old American know how? Seriously?
Analysts advise overweighting infrastructure stocks, such as railways and expressways, due to the government's economic stimulus policies. Refineries' earnings prospects will be boosted by lower crude prices and government fuel price reforms.
They warn that weakening demand would particularly hit auto, airlines and commodity stocks such as non-ferrous metals.
What more proof would you need? That is EXACTLY what OUR analysts are advising US to do!
French Unemployment Rises Most in Three Years to Record Level - The recovery in France appears to have stalled already, and this is from employment data before the terrorist attacks. Via translation from Les Echos ... ...
1 hour ago