wrote:
wrote:
It's actually starting to decrease, the trade deficit with China due
to
increased construction, requiring more imports from other countries,
US
included.

The real problem lies in their currency, pegged to the U.S. dollar.
They need to let their currency free-float on the market before
things
can really even out.

Here's another article explaining why China's currency isn't
undervalued, by Prof. Michael Connolly, U Maimi Chair of Economics:

http://cet.hnu.net.cn/ca_fx22.ppt

"The Current Account and the Exchange Rate: The tail does not wag the
dog"

"the real exchange rate has remained relatively stable since 1986, due
largely to greater inflation in China that has offset yuan devaluation.

He and u must explain where PRC got the money to buy US treasury. by
buying US bond and treasury, efectively beijing is lending money to USA
government to avoid RMB revaluation.

In fact, in 2004 it only appreciated 2%. The RMB has in fact slightly

depreciated in real terms since 1986."

Because RMB pegged to USA dollar and us dollar is falling?

So China's currency isn't the IMF-style "dig your own grave" free float
(just ask Thailand and George Soros.) US monetary policy intervenes all
the time to control the dollar. EU member currencies are pegged to the
EU, and EU itself is heavily regulated by crawling peg.

EU member currency pegged to the EU? That's the biggest joke today.
Where is the "EU member currency" in 2005?

If "free float" is so good, how come we ain't doing it? I needn't
remind you our US$ was pegged to gold for hundreds of years, and the
PRC is only around for 50 some years.

Hahaha. Now charles liu is citing history here. PRC is only around for
50 years and wonder how many of them RMB is pegged to usa dollar.

Give them a chance to do it on their own, for their own interest.
That's what we'd do.

Beijing should peg RMB so 828 yuans equal 1 USA dollar.

Then it begs the question why are we bashing China and scapegoating
their currency for our problems. Because when it comes to our problem,
it's to hell with everybody else - especially for our leaders of
society to keep their wealth.

But now EU is also having problem with chinese textile. Is the whole
world having problem with PRC?

Have you seen what happened to the oil stocks since we invaded Iraq on
false WMD accusation and dirty bombed Iraq from highest living standard
in region back to the stone age? The stocks are going thru the roof:

http://money.cnn.com/quote/quote.htm...HAL&time=3year

Oh yap. Finally charles liu mention dirty bomb and Iraq. He always say
this when people criticize the communis in Beijing to deflat people's
attention. But since Kelvin Mok comment ur science is atrocious that u
worry the bad effect of hydrogen to human bodies, I bet others can
ignore ur story on dirty bomb.

One question for ya. If today u dont live in USA but live in Shanghai,
and u wanna visit other countries for a trip. Do u like to see chinese
RMB appreciate or depreciate?