The endless ideological wars against China

[Chinese-Dragon]

go on , explain.

You can't get rid of the biggest deficit on Earth simply by moving currencies a few percentage points up and down. I don't even know how you can make such a suggestion.

Why don't you explain to me how you think a free floating currency can completely eliminate hundreds of billions of dollars in trade deficit?

Or better yet, find me ONE SINGLE economic expert who thinks that a free floating currency can completely get rid of national deficit. It is just completely wrong.

If it was "so easy" to get rid of deficit... why did the world go through a big recession in 2008, and why is Europe facing a financial crisis now? If it was so easy to get rid of their entire deficit... they would have done it already.

 

[Chinese-Dragon]

No one in China believes that the Japanese are racially inferior. We just don't believe that they are racially superior.

Quit parading the your hispanic heritage around. You are losing face for the countless harding working hispanics who are working for a better life instead of sitting around at a computer spewing nation bashing propaganda.

Exactly right.

He is just projecting his own stereotypes onto the entire Chinese race. Which, ironically, is a form of racism in itself.

 

[think]

You can't get rid of the biggest deficit on Earth simply by moving currencies a few percentage points up and down. I don't even know how you can make such a suggestion.

Why don't you explain to me how you think a free floating currency can completely eliminate hundreds of billions of dollars in trade deficit?

Or better yet, find me ONE SINGLE economic expert who thinks that a free floating currency can completely get rid of national deficit. It is just completely wrong.

well, whats the reason some countries want to maintain pegs then? why not just have free float currencies.

peg 1$ = 3yuan into the world economy and see how your jobs and exports deplete from china.

 

[Chinese-Dragon]

well, whats the reason some countries want to maintain pegs then? why not just have free float currencies.

peg 1$ = 3yuan into the world economy and see how your jobs and exports deplete from china.

Yes, pegging currencies can INCREASE and DECREASE deficits depending on who is on the giving and receiving end. A free-floating currency might see the US deficit decrease by a few percentage points (and even that is arguable, since imports will just be sourced from other countries), but it's still the biggest deficit in the world. And it does nothing about the $13 trillion debt.

So it can be argued that the Chinese currency peg has slightly increased the Chinese trade surplus, and also slightly increased the American deficit. The extent to which it has affected both, is debatable.

What a free-floating currency cannot do, is completely eliminate the deficit. That just doesn't make any sense at all.

If such a "magic solution" was workable, why haven't they done it? Why did they let the world markets collapse during the credit crunch?

 

[below_freezing]

well, whats the reason some countries want to maintain pegs then? why not just have free float currencies.

peg 1$ = 3yuan into the world economy and see how your jobs and exports deplete from china.

If that happens our foreign exchange would devalue 50% - a shocking loss, but nothing 1 year of growth won't make up.

On the other hand, the US will collapse as its currency devalues, prices skyrocket, capital flees the country hyperinflation makes it descends into civil war.

I would LOVE the US to try and sanction us now.

 

[think]

Yes, pegging currencies can INCREASE and DECREASE deficits depending on who is on the giving and receiving end.

What they cannot do, is completely eliminate the deficit. That just doesn't make any sense at all.

If such a "magic solution" was workable, why haven't they done it? Why did they let the world markets collapse during the credit crunch?

well, the last line clearly shows that you have a poorer grasp on economics than me i am no expert, but the laws of economics are about equilibrium. currencies will adjust to imbalanaces according to laws of demand and supply exercised on the currency futures markets. however, today the central banks intervene heavily in this process and maintan ranges / pegs. let this happen freely and any major imbalances will be corrected by the forex markets.

 

[Chinese-Dragon]

well, the last line clearly shows that you have a poorer grasp on economics than me i am no expert, but the laws of economics are about equilibrium. currencies will adjust to imbalanaces according to laws of demand and supply exercised on the currency futures markets. however, today the central banks intervene heavily in this process and maintan ranges / pegs. let this happen freely and any major imbalances will be corrected by the forex markets.

You have absolutely no idea what you are talking about.

You were the one who made this ridiculous statement, why don't you try backing it up:

but wouldn't full floating currencies fix the trade deficit completely?

I would love to see you try explaining that one. It is just complete BS.

 

[think]

You have absolutely no idea what you are talking about.

You were the one who made this ridiculous statement, why don't you try backing it up:

I would love to see you try explaining that one. It is just complete BS.

well, let me read up more on this. my prelim reads show that theres a for / against camp among economists in their belief on whether floats will cure the deficit. i'll get the details.

 

[Chinese-Dragon]

well, let me read up more on this. my prelim reads show that theres a for / against camp among economists in their belief on whether floats will cure the deficit. i'll get the details.

If you can't back up what you say, maybe you shouldn't say it.

 

[think]

but wouldn't full floating currencies fix the trade deficit completely? i don't buy the US bankrupt theory yet.

well. in case its too hard to see, this was a question and not an assertion. i am not an expert but its a sunday and i'd like something interesting to read.

 

[Chinese-Dragon]

my prelim reads show that theres a for / against camp among economists in their belief on whether floats will cure the deficit. i'll get the details.

OK so where are these economists, who believe that a floating currency will completely "cure the deficit"?

 

[think]

krugman for one. but hes more a hack these days.

 

[Chinese-Dragon]

krugman for one. but hes more a hack these days.

Where did he say that, and what is the source?

Also, can you finally explain the reasoning as to how a floating currency can completely get rid of the trade deficit.

 

[think]

every krugman article you'll google will put the blame squarely on chinese currency policy. there have been several. just use google.

 

[Chinese-Dragon]

every krugman article you'll google will put the blame squarely on chinese currency policy. there have been several. just use google.

Why is it so difficult for you to answer a simple question?

How does a floating currency completely get rid of the trade deficit?

And even though you call Krugman a "hack", you still can't quote for me where he said that a floating currency will completely get rid of the deficit.

You know what, I'm done. You simply cannot back up the things you say, arguing with you is just a waste of time.