[Peace-discuss] Fw: [gangboxnews] Implications of China's Currency Policy on Trade

[Morton K. Brussel]

What is the "true" ratio $/RMB, and how is that to be fairly determined? 
What does an apple cost in China, and what does it cost in the USA? Or how about a basket of commodities produced locally?
(I don't know much about economics.)

--mkb

On Nov 20, 2009, at 7:33 AM, E. Wayne Johnson wrote:

> Americans should consider what is going on behind the scenes.  Indeed there are many Chinese-Foreign Joint Venture companies and even Foreign-Owned Companies operating inside China.  Part of the contract of some of these companies with the PRC is that they are exporters.
> 
> The current fascination with the undervalued reminbi (RMB) yuan is nothing new at all.  The yuan has been undervalued for many years.  Estimates of 40% are ridiculous.  The RMB has been undervalued by a factor of 2 or more for the 15+ years that I have been following it.
> 
> Americans who think they want this corrected are barking up the wrong tree.  The RMB will decouple from the Dollar.  But folks, that peg of the RMB to the Dollar is one of the last threads that preventing free-fall of the Dollar and skyrocketing inflation in the US.  
> 
> The Fundamental problem behind hollowed out American domestic companies has nothing to do with China.
> 
> 
> 
> On 11/20/2009 6:48 AM, unionyes wrote:
>> 
>>  
>> ----- Original Message -----
>> From: wilsoncharless
>> To: gangboxnews at yahoogroups.com
>> Sent: Thursday, November 19, 2009 10:23 PM
>> Subject: [gangboxnews] Implications of China’s Currency Policy on Trade
>> 
>> 
>> Implications of China's Currency Policy on Trade
>> Three Reports from Congressional Research Service
>> Excerpts below
>> from: http://www.ncseonline.org/NLE/CRSreports/08Jun/RS21625.pdf
>> - - - If the yuan is undervalued vis-à-vis the dollar (estimates rage from 15% to 40% or higher), then Chinese exports to the United States are likely cheaper than they would be if the currency were freely traded, providing a boost to China's export industries (and, to some degree, an indirect subsidy).- - -  Such a policy, in effect, benefits Chinese exporting firms (many of which are owned by foreign multinational corporations) at the expense of non-exporting Chinese firms, especially those that rely on imported goods.
>>  
>> - - -  Chinese statistics indicated that more than half of its exports to the world are produced by foreign-invested firms in China, many of which have shifted production to China in order to gain access to low-cost labor.
>>  
>> - - - These factors imply that much of the increase in U.S. imports (and hence, the rising trade deficit with China) is largely the result of China becoming a production platform for many foreign companies, rather than unfair Chinese trade policies.
>>  
>> 5-8-08 Report in six page pdf at: http://www.ncseonline.org/NLE/CRSreports/08Jun/RS21625.pdf
>> 1-9-08 Report in 57 page pdf at: http://www.fas.org/sgp/crs/row/RL32165.pdf
>> 6-17-09 Report in 12 page pdf at: http://www.fas.org/sgp/crs/row/RS21625.pdf
>> __._,_.___
>> Reply to sender | Reply to group
>> Messages in this topic (1)
>> RECENT ACTIVITY:
>> Visit Your Group Start a New Topic
>> GANGBOX: CONSTRUCTION WORKERS NEWS SERVICE
>> http://finance.groups.yahoo.com/group/gangboxnews/
>> http://groups.google.com/group/gangbox/
>> http://gangboxnews.blogspot.com
>> http://myspace.com/gregory10031
>> http://clnews.org
>> "UNION NOW, UNION FOREVER"
>> MARKETPLACE
>> Going Green: Your Yahoo! Groups resource for green living
>> 
>> Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use
>> .
>>  
>> __,_._,___
>> 
>> _______________________________________________
>> Peace-discuss mailing list
>> Peace-discuss at lists.chambana.net
>> http://lists.chambana.net/cgi-bin/listinfo/peace-discuss
>>   
> 
> _______________________________________________
> Peace-discuss mailing list
> Peace-discuss at lists.chambana.net
> http://lists.chambana.net/cgi-bin/listinfo/peace-discuss

-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://lists.chambana.net/mailman/archive/peace-discuss/attachments/20091120/0800edb3/attachment.html