Infographic: How China Manipulates Its Currency

[Obambam]

I hear you and follow your logic but in the case of China_ it has gone overboard and that's why we read about multiple economies complaining loudly.

These on going spats has been going for years my friend.

On the recent G20 meeting in Seoul 18+1 countries had the opportunity to point fingers at China in regards to the issue but the 18 refused to and instead chose to take it out on America and do you know why? They did so because the very country that brought them the 2008 financial crisis irresponsively went on and devaluated its currency, further hampering the global recovery. The guys were absolutely outraged and in response chose to not hop on to the American bandwagon. Hence limited progress was made on the headline issue of 'currency war and addressing trade imbalances'.

The Seoul G-20 Summit: How QE2 Poisoned the Well|American Foreign Policy

Unfortunately, the Summit was doomed from the onset. This is because the U.S., while decrying Chinese currency policies, was also employing currency devaluation tactics of its own. While this “quantitative easing” is not only fiscally irresponsible and detrimental to global economic recovery, it also threatens the shaky foundation of trust between G-20 nations in the aftermath of the global financial crisis.

In an address to the G-20 countries, President Obama said that this current yuan devaluation was an “irritant” to the international community, and he forcefully called on China to end the policy. However, China has simply not budged. In light of the Federal Reserve’s recent quantitative easing (QE-2) to buy $600 billion of U.S. treasury bonds, China thought, reasonably, that the United States was devaluing its currency to obtain a marketable advantage. Even though Chinese devaluations are far more potent in scope and effect, the hypocrisy of the American position incited political rhetoric and unproductive finger-pointing.

In the end it was America who was overboard by further hampering the recovery of the global economy. America did so because it cares more about itself than others. Just like how China cares more about itself than others. That was my whole point.

 

[BigTree.CN]

Well, today must be China's lucky day!

 

[Anonymous user]

Wow you're learning the really rude phrases.

I'm sure you know that insulting someone's "ancestors" is considered to be very offensive in China. So rock on.

Fortunately most of us are matured enough not to take such insults to heart, considering my current role is managing 40 odd offshore staff and writing appraisals for them things might turn out differently if I were as narrow minded as many proved to be in here.

 

[Chinese-Dragon]

Fortunately most of us are matured enough not to take such insults to heart, considering my current role is managing 40 odd offshore staff and writing appraisals for them things might turn out differently if I were as narrow minded as many proved to be in here.

I think it's hilarious, that JayAtl is learning to swear at people in Mandarin.

And he dived straight into the "ancestor" insults as well....

 

[Anonymous user]

I think it's hilarious, that JayAtl is learning to swear at people in Mandarin.

And he dived straight into the "ancestor" insults as well....

Anyway mate they have a point and we should not pull India in to the discussion, every debate has + and -. What China is doing is not right but neither is the US and I believe it can be justified.

 

[JayAtl]

I think it's hilarious, that JayAtl is learning to swear at people in Mandarin.

And he dived straight into the "ancestor" insults as well....

Ni lao ma shi ge da wang ba

 

[Thomas]

Sure.

US Treasury gives China a pass on currency manipulation - Washington Post

lol, you know full well Obama is simply playing politics in order to not invoke U.S. law that would bring financial sanctions into place.

"Members of Congress and others have urged the Obama administration to brand China a "currency manipulator," which, under U.S. law, would trigger negotiations and possible sanctions.

But like his predecessors, Treasury Secretary Timothy F. Geithner has tried to resolve the issue through diplomatic channels - criticizing Chinese policy and urging them to make changes without formally invoking U.S. law."

 

[oct605032048]

lol, you know full well Obama is simply playing politics in order to not invoke U.S. law that would bring financial sanctions into place.

"Members of Congress and others have urged the Obama administration to brand China a "currency manipulator," which, under U.S. law, would trigger negotiations and possible sanctions.

But like his predecessors, Treasury Secretary Timothy F. Geithner has tried to resolve the issue through diplomatic channels - criticizing Chinese policy and urging them to make changes without formally invoking U.S. law."

That's right. Otherwise there would be too high a price for the countries and even the world to take.

 

[Thomas]

Looks like the US government really likes the loans it gets from China.

sure we do! you guys financed our F-22's and get ready to finance our F-35 procurements. Thx China!

 

[Thomas]

That's right. Otherwise there would be too high a price for the countries and even the world to take.

China's U.S. bond purchases are mainly Short term ones. I personally hope that they stop purchasing U.S. debt and force congress to drastically reign in spending. Sad thing is that won't happen because of the effect it would have on Chinese currency.

 

[Chinese-Dragon]

sure we do! you guys financed our F-22's and get ready to finance our F-35 procurements. Thx China!

No problem, just keep spending, the loans will keep coming.

 

[Chinese-Dragon]

China's U.S. bond purchases are mainly Short term ones. I personally hope that they stop purchasing U.S. debt and force congress to drastically reign in spending. Sad thing is that won't happen because of the effect it would have on Chinese currency.

You are overestimating our power.

We can't force your government to keep spending, they do that by themselves.

 

[no_name]

If you don't sell, how could we buy?

 

[zoochee]

Let's say there is this punk who went to a bank and got a credit card - thanks to the bank's generosity. Now with his newly found wealth he went to the gun shop next block and bought a few shinning pieces. Since he is a such a punk, he went out of town and robbed a few Libyan, Iraqi, and Afghanistan immigrants for some quick cash. However in the end, this little punk still does not have the gut to not paying back the interest although on some days when he is high on crack he might even dream of robbing the bank but ... only a dream.

Guess who is the bank and who is the punk?

 

[JayAtl]

Let's say there is this punk who went to a bank and got a credit card - thanks to the bank's generosity. Now with his newly found wealth he went to the gun shop next block and bought a few shinning pieces. Since he is a such a punk, he went out of town and robbed a few Libyan, Iraqi, and Afghanistan immigrants for some quick cash. However in the end, this little punk still does not have the gut to not paying back the interest although on some days when he is high on crack he might even dream of robbing the bank but ... only a dream.

Guess who is the bank and who is the punk?

you are the punk and the bank is the canadian immigration dept that let you in?