G-20 refuses to back US push on China's currency

[Hussein]

Developing countries must stand firm and work together for a more fair world for most people who is not living in the OECD countries and earning $40K a year.

maybe they win that much but life is much more expensive
you can live well in Iran with 500 dollars per month
but you live poorly in France with 1500 dollars per month
with 40 000 USD you are just average , can buy a tv a car but not a housing, even a small appartment in Paris. You need buy far from there...
One day the salaries mean the same and money in fair values, then the meaning of one salary given as exemple in international matter blabla would mean something

 

[Chinese-Dragon]

America forgets that a lot of the G20 nations have trade deficits with China.

So a rise in the value of the Yuan is not in their interests, it will only increase the cost of their imports.

 

[somebozo]

Because the other 19 countries stand to lose from increase value of Chinese current, a country which has mastered producing US goods on the cheap...and these 19 countries are enjoying the benefits very well...so why should they back US anyway!

 

[Obambam]

an angry young man there.............
....these can can statement can surely terrorize Wen Jiabao . now that the US is aggressive , looks like china will have to revalue it policy of currency....

America is only poking China's iron shield with its wooden stick. China will continue to stand its ground.

 

[GLOBAL HAWK]

America forgets that a lot of the G20 nations have trade deficits with China.

So a rise in the value of the Yuan is not in their interests, it will only increase the cost of their imports.

It might be true but how long can the Chinese keep on devaluing yuan, it's not in their future interest too.The chinese keeping on accumulating dollars will not do any good for global market, once yuan is revalued there will be another global crisis followed by job loss and other economic calamities.

something has to be done in global interest and fast

 

[CardSharp]

It might be true but how long can the Chinese keep on devaluing yuan, it's not in their future interest too.The chinese keeping on accumulating dollars will not do any good for global market, once yuan is revalued there will be another global crisis followed by job loss and other economic calamities.

something has to be done in global interest and fast

I don't think the US can budge China either way, if China speeds up or slows down the upward evaluation of the Yuan, it not be for its own reason. The US economy is in a fragile recovery, talks of a trade war is just hot air from pundits and talking heads.

 

[Obambam]

It might be true but how long can the Chinese keep on devaluing yuan, it's not in their future interest too.The chinese keeping on accumulating dollars will not do any good for global market, once yuan is revalued there will be another global crisis followed by job loss and other economic calamities.
something has to be done in global interest and fast

Hence China is being cautious on the valuation of its currency. The valuation will go up a notch at a time. This way it protects China's economy and the other nations who is in trade deficit with China. Sharp rise or decrease in its value will have huge undesirable impact globally and domestically. A bit like tossing a brick into the pond.

As of now, other countries are enjoying cheap goods, labours and foreign investments coming in from China. At the same time they are also benefitting from sale of raw materials, technology and services to China. There maybe political and other financial motivations too, and as a result, non are willing to back America up on its proposal to push China's currency. Needless to say, America did themselves no favours with their introduction of QE2.

 

[redfox]

The radical here in US believes that if China raised its yuan value, it would create more jobs in the US economy. What they have failed to see is that China export to US is only at 17% - 23%. The growth of being depended on imports have raised beyond their control. The wealth here, so proclaimed have been paper wealth (equity,stock,pensions), all but lost. The US stock market today is all but an over valued gauge.

The US federal printer has been over worked and running out of ink. China can raise its yuan, but the effect would be very global, including the US.

I had laugh when Obama's hand expression to Hu, that US GDP was here and China was here (halfway). Obama forgot to leave out the deficit. 14 trillion US GDP, 18 trillion deficit, that leave US in - 4 trillion, red ink, yes?

We play our poker hand in so many ways, but the defeat runs more than us one!

 

[casual]

if the low wage jobs leave china, it won't go back to america.

 

[bandit]

The radical here in US believes that if China raised its yuan value, it would create more jobs in the US economy. What they have failed to see is that China export to US is only at 17% - 23%. The growth of being depended on imports have raised beyond their control. The wealth here, so proclaimed have been paper wealth (equity,stock,pensions), all but lost. The US stock market today is all but an over valued gauge.

The US federal printer has been over worked and running out of ink. China can raise its yuan, but the effect would be very global, including the US.

I had laugh when Obama's hand expression to Hu, that US GDP was here and China was here (halfway). Obama forgot to leave out the deficit. 14 trillion US GDP, 18 trillion deficit, that leave US in - 4 trillion, red ink, yes?

We play our poker hand in so many ways, but the defeat runs more than us one!

Factual inaccuracies first- US debt is not 18 trillion; I dont know how you pulled up that number, it is $13,860,774,000 or 13.86 trillion. So no red ink for you tonite, better luck tommorow.

http://treasurydirect.gov/govt/reports/pd/pd_debtposactrpt_1011.pdf

The wealth here, so proclaimed have been paper wealth (equity,stock,pensions), all but lost. The US stock market today is all but an over valued gauge.

Equity stock pensions are paper wealth- okay, so where does real wealth lie?
Could you also elaborate some more on the over-valued part, you must have a logical reason to make that statement, if you are right I'll short sell the S&P 500 and share half of the profits with you, of course if you are right and the market is supposed to crash.
If the reasoning is somewhere along the lines of the 'paper wealth' example you just gave, even a bucket of salt cant make me digest the statement you made

 

[below_freezing]

Factual inaccuracies first- US debt is not 18 trillion; I dont know how you pulled up that number, it is $13,860,774,000 or 13.86 trillion. So no red ink for you tonite, better luck tommorow.

http://treasurydirect.gov/govt/reports/pd/pd_debtposactrpt_1011.pdf



Equity stock pensions are paper wealth- okay, so where does real wealth lie?
Could you also elaborate some more on the over-valued part, you must have a logical reason to make that statement, if you are right I'll short sell the S&P 500 and share half of the profits with you, of course if you are right and the market is supposed to crash.
If the reasoning is somewhere along the lines of the 'paper wealth' example you just gave, even a bucket of salt cant make me digest the statement you made

sigh, you don't seem to recognize the difference between financial instruments with no utility but numerical value, and physical objects that have inherent utility and therefore real value.

also, the US has not seemed to notice that our currency has never depreciated overall (maybe 1 second fluctuations) since 2005. it has in fact increased by a significant 20%.

 

[CardSharp]

sigh, you don't seem to recognize the difference between financial instruments with no utility but numerical value, and physical objects that have inherent utility and therefore real value.

also, the US has not seemed to notice that our currency has never depreciated overall (maybe 1 second fluctuations) since 2005. it has in fact increased by a significant 20%.

Forget it, he'll just tell you are too stupid to understand economics and pat himself on the back.

 

[bandit]

sigh, you don't seem to recognize the difference between financial instruments with no utility but numerical value, and physical objects that have inherent utility and therefore real value.

Ahh my high IQ friend again, I'm afraid I don't have the patience to reply to such naive statements especially on a saturday night. Let me simplify it then to just one question then, why is there a stock market in China if its all worthless according to your theory, and why is it that the biggest firms in China including PetroChina (3,656.20 billion), Industrial and Commercial Bank of China (1,417.93 billion), Sinopec (961.42 billion), Bank of China (894.42 billion) China Shenhua Energy Company (824.22 billion), China Life (667.39 billion), China Merchants Bank etc. are listed on it. Its paper money after all isn't it?


.

also, the US has not seemed to notice that our currency has never depreciated overall (maybe 1 second fluctuations) since 2005. it has in fact increased by a significant 20%.

Cherry -picking and half-truths again, the 20% rise does not reflect the increasing trade by China and US, China still manages its currency and pegs it to the dollar, the real reason behind China hoarding up all those dollars and not because CCP prefers dollars to yuan to invest its earnings in.

Forget it, he'll just tell you are too stupid to understand economics and pat himself on the back.

You are welcome to contest any statement I make, and what is wrong in calling a stupid as he is?n Or you want a free license to make statements that are half-truths and downright lies as in the earlier post and suit your point of view?

 

[below_freezing]

Ahh my high IQ friend again, I'm afraid I don't have the patience to reply to such naive statements especially on a saturday night. Let me simplify it then to just one question then, why is there a stock market in China if its all worthless according to your theory, and why is it that the biggest firms in China including PetroChina (3,656.20 billion), Industrial and Commercial Bank of China (1,417.93 billion), Sinopec (961.42 billion), Bank of China (894.42 billion) China Shenhua Energy Company (824.22 billion), China Life (667.39 billion), China Merchants Bank etc. are listed on it. Its paper money after all isn't it?


.

Cherry -picking and half-truths again, the 20% rise does not reflect the increasing trade by China and US, China still manages its currency and pegs it to the dollar, the real reason behind China hoarding up all those dollars and not because CCP prefers dollars to yuan to invest its earnings in.



You are welcome to contest any statement I make, and what is wrong in calling a stupid as he is?n Or you want a free license to make statements that are half-truths and downright lies as in the earlier post and suit your point of view?

More low IQ rants. Whether a company is listed or not on the stock market has nothing whatsoever to do with physical production. Stock prices fluctuate by the second, is a company doing better or worse by the second? The stock market is a way for companies to quickly raise capital through selling partial ownership, but it does not represent real value in any way, no physical wealth (products created using the classical factors of production) is created.

More evidence of the stock market being a worthless indicator of the economy: the Chinese stock market has been continuously dropping while the GDP has been increasing.

Even more evidence that the stock market is a worthless indicator of physical wealth.

 

[CardSharp]

More low IQ rants. Whether a company is listed or not on the stock market has nothing whatsoever to do with physical production. Stock prices fluctuate by the second, is a company doing better or worse by the second? The stock market is a way for companies to quickly raise capital through selling partial ownership, but it does not represent real value in any way, no physical wealth (products created using the classical factors of production) is created.

More evidence of the stock market being a worthless indicator of the economy: the Chinese stock market has been continuously dropping while the GDP has been increasing.

Even more evidence that the stock market is a worthless indicator of physical wealth.

Any speculative market is subject to distortion based on people's not always rational perceptions. There is a reason why bubbles happen and there is reason Jim Cramer's TV show can move the markets (hint he doesn't actually add value to a stock).

Learn about trading and do some trading, and this fact will become readily apparent.