Secret History

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tuulen
Posts: 1661
Joined: Tue Jun 16, 2009 3:18 am
Location: New England, USA

Re: Secret History

Post by tuulen » Sun Dec 11, 2011 10:09 am

Rip wrote:Although though beat almost everybody else in the so called developing world ("so called" because apart from China few of them show signs of "development"), the currency manipulation is still rather questionable practice. Apart from hurting outside world, it also putting the interests of the export industries (and industrials) ahead of the interest of the ordinary citizens.
China is now in a very difficult position, in regard to capitalism. On the one hand, only a very small percentage of Chinese are extraordinarily wealthy at this time, while the vast majority of Chinese are not far from poverty, and that imbalance could take many years for the Communist government to address, or else risk having China being taken over by an imperial class of wealthy elite, which is exactly what caused the Communist party to rise to governmental power decades ago! On the other hand, however, China must also maintain the national and the international value of its currency, the yuan.

Altogether, it could be many years before Chinese capitalism and its currency become both politically and financially stable, and meanwhile we foreigners get to watch China go through some big growing pains, including whatever currency manipulation is necessary, toward long term stability. In other words, we cannot expect a HUGE Communist nation to convert to capitalism in just a few short years, that it WILL take time, perhaps many years to successfully make such a conversion.

Also, note that China's currency, the yuan, is today NOT traded in international currency markets, such as Foreign Exchange or Forex.



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