- Registration time
- Last login
- Online time
- 1164 Hour
- Reading permission
Thanks you Fish for your thought, however I still can't find whether my picture of 2 RMB=1 USD is proper or false.|
Unless I will read your post more carefylly and find the relation between free speech and Rate of Exchange. We have in Poland free speech on this subject and many articles concerning the RoE Polish zloty /US dollar have been written , both for and against strenghtening and weakening it. No peopl went to jails. What is in China, whether they can talk about economical stuff freely - I have no idea. I have not read Chinese newspapers in Chinese.
I am so weak in economics to the point , that I have no clue on what influence religion(s) has(ve) on exchange rate of local currency.
Voting. We are as tyrranical country as China in this respect. Or as Germany. No voting on Rate of Exchange is offered to our enslaved nation. OH shit. Fish - this is a great idea..someody should have picked it up earlier. I may set a new political party and my pre election slogan and promise to the Nation will be " When I become the president , you will be freely voting on Rate of Exchange".
Fish, how much chance do you give my party in next elections.:)
No freedom in politics. What you mean? I see that the USA and Europe are saying something just opposite ->"China has too much freedom in financial politics, particularly in setting internally the RoE". This shows rather that China is more free than for example Poland. Our central bank has a substantial sum of reservers to counteract attacks on zloty from abroad, as we have nearly free exchange. Not as free as in the USA (?) perhaps, but I can change zloty to dollar (and back)in kantours and banks. They compete on the market. In China it is free only one way: from the foreign currency to RMB. Here I see the limitation of freedom, but not in the China's freedom to set the RoE.
Why would we think Chinese gvmnt would be fair to the world...hmm...me think that Chinese gvmnt are responsible for the good of Chine first..for the others later. Chinese gvmnt had a strategy to set RMB and conditions to stimulate rapid growth of production section of economy with strong incensitives for export. THis brought them after relativelly small number of years to the place NR1 of foreign reserves holders. I understand , that before releasing the RMB to the playground of foreign sharks they have to accumulate the financial weapon to play. You know , the counter-reaction means , when waves of speculative money would flow to and fro China once they make it one of world money.
I have just read that American economical magicians claim that RMB is undervalued by 40%.
Why 40%, when Doberman sees it as 300% (or75% from the other side)...how do they calculate this 40%. You know, we read these news about the import/export imbalance, about tarrifs to be imposed and we only are fed with figures like 40% and 20% and whatever percent. Have anyone seen how it is calculated , if not taken straight from the ceiling? Is this 40% a mere difference in retail price between similar products made in USA and made in China?-> this would not be only to the RoE, much more factors set the price.
Please, anybody , who can help me to understand , whether I am right or wrong ( AND WHY!!!), seing the PPP factor as a one good indication of how much a currency is overvalued. Not just RMB, it also refers to others.
[ Last edited by doberman at 2006-4-2 07:56 PM ]