We Yuanna Stronger Yuan...

[GRG55]

Tim weighs in. Again...

Geithner Says He’s Confident China Will Move to Strengthen Yuan

April 3 (Bloomberg) -- Treasury Secretary Timothy F. Geithner expressed confidence China will decide that a stronger currency is in the country’s interest, saying the U.S. is trying to “maximize the chance that they move quickly” on the yuan...

...“Our strategy is going to be designed to increase the odds that China does decide to do what’s in their interest, which is to let their currency start to move up again, and that’ll be part of making sure we have a more healthy global recovery in place,” Geithner said in New York...

I really yuant to know who writes his stuff for him. As if the Chinese need the USA to help them decide "what's in their interest". Gunboat diplomacy without the gunboats...:rolleyes:

[GRG55]

Re: We Yuanna Stronger Yuan...

Tim weighs in. Again...

Geithner Says He’s Confident China Will Move to Strengthen Yuan

...

Note the somewhat more "polite" approach of the Japanese...

Wen Says Lopsided Trade Not Fault of Any One Country

April 3 (Bloomberg) -- China’s Premier Wen Jiabao said one country can’t be blamed for imbalances in trade relationships, a comment that comes amid pressure on the Asian nation to allow its currency to appreciate.

Trade problems “can’t be blamed on one side,” visiting Japanese Finance Minister Naoto Kan quoted Wen as saying today.

“I didn’t tell him what to do” about China’s currency, Kan told reporters today in Beijing after the meeting. “I told him I expect China to make a wise judgment.”...

[jk]

Re: We Yuanna Stronger Yuan...

with global demand relatively weak, it's hard to envision the chinese deciding that they really want to raise the price on all their exports. when the developed countries are so weak they offer no demand at all, it will then be in china's interest to upwardly revalue so as to more easily outbid others for resources, while they would have nothing to lose on the export side.

the only other condition i can think of, would be if their domestic economy overheats enough that there is a genuine labor shortage. then a drift up for yuan would squeeze the exporters to the benefit of domestically oriented employers. even this assumes that they are not fundamentally mercantilist in their thinking.

[GRG55]

Re: We Yuanna Stronger Yuan...

Note the somewhat more "polite" approach of the Japanese...

Wen Says Lopsided Trade Not Fault of Any One Country

April 3 (Bloomberg) -- China’s Premier Wen Jiabao said one country can’t be blamed for imbalances in trade relationships, a comment that comes amid pressure on the Asian nation to allow its currency to appreciate.

...

China to make own decisions on exchange rate policy

BEIJING — China said Friday it will make its own decisions on how to manage its exchange rate and rejected accusations that the yuan is undervalued, amid growing international calls for a stronger currency.

"The Chinese government will make responsible and independent decisions on the foreign exchange policy based on its economic and monetary situation," Vice Commerce Minister Chen Jian told reporters.

"This is nothing to be criticised. China's foreign exchange rate is not undervalued."...

[jk]

Re: We Yuanna Stronger Yuan...

it is a bit hard for me to understand what tim and others expect to accomplish by raising prices at walmart. do you think it's ALL just playing to the peanut gallery, or are there some american workers [steelworkers? how many american steelworkers are there, anyway?] who would benefit from a stronger yuan?

[touchring]

Re: We Yuanna Stronger Yuan...

Note the somewhat more "polite" approach of the Japanese...

Wen Says Lopsided Trade Not Fault of Any One Country

April 3 (Bloomberg) -- China’s Premier Wen Jiabao said one country can’t be blamed for imbalances in trade relationships, a comment that comes amid pressure on the Asian nation to allow its currency to appreciate.

Trade problems “can’t be blamed on one side,” visiting Japanese Finance Minister Naoto Kan quoted Wen as saying today.

“I didn’t tell him what to do” about China’s currency, Kan told reporters today in Beijing after the meeting. “I told him I expect China to make a wise judgment.”...

China's a big export market for Japanese capital and industrial equipment. Equipment used to manufacture exports for the US market.

A stronger RMB may not benefit Japan if it leads to lower demand for Chinese exports and which in turn reduces demand for Japanese industrial equipment. And besides, no supplier will want to offend his customer.

[GRG55]

Geithner Delays Currency Report...

Tim weighs in. Again...

Geithner Says He’s Confident China Will Move to Strengthen Yuan

April 3 (Bloomberg) -- Treasury Secretary Timothy F. Geithner expressed confidence China will decide that a stronger currency is in the country’s interest...

...

Financial Olympics...the games continue...:rolleyes:

It would appear that Treasury has figured out there is no hope of China moving on the exchange rate as long as it may appear in response to "outside pressure" from capitalist running dogs... ;)

Geithner Delays Currency Report, Urges Flexible Rate for China

April 3 (Bloomberg) -- U.S. Treasury Secretary Timothy F. Geithner delayed a scheduled April 15 report to Congress on exchange-rate policies and urged China to move toward a more flexible yuan...

...Geithner said yesterday that Hu’s visit, along with a meeting of Group of 20 finance ministers and central bank governors this month and a U.S.-China Strategic and Economic Dialogue scheduled for May, will offer “the best avenue for addressing U.S. interests at this time.”

“Our objective is to use the opportunity presented by the G-20 and S&ED meetings with China to make material progress in the coming months,” he said.

U.S. delays decision on China yuan manipulation

(Reuters) - U.S. Treasury Secretary Timothy Geithner said on Saturday he was delaying an April 15 report on whether China manipulates its currency but pledged to press for a more flexible Chinese currency policy.

The decision may help thaw relations two weeks before China's president was due to visit Washington. However, Geithner also tried to soothe angry U.S. lawmakers by saying he will use upcoming meetings of the Group of 20 and a U.S.-China economic summit in Beijing in May to try to get China to move.

"I believe these meetings are the best avenue for advancing U.S. interests at this time," Geithner said in a statement issued at midday on the Easter holiday weekend. Treasury gave no indication when it will actually release the report...

[touchring]

Re: We Yuanna Stronger Yuan...

delete........

[touchring]

Re: We Yuanna Stronger Yuan...

So how many months do you think the Chinese will need to decide on their own? I say 2 years is about the time they will need to unpeg the RMB. Hopefully, Obama can wait that long.

[GRG55]

Re: We Yuanna Stronger Yuan...

So how many months do you think the Chinese will need to decide on their own? I say 2 years is about the time they will need to unpeg the RMB. Hopefully, Obama can wait that long.

2 years? That quick?

I heard that the Chinese don't worry about quarterly results...they think in hundreds of years...

[touchring]

Re: We Yuanna Stronger Yuan...

2 years? That quick?

I heard that the Chinese don't worry about quarterly results...they think in hundreds of years...

If you look at many Chinese products, they are meant to do only 1 time business. All that matters is immediate profits.

Have you tried to do bargaining in a tourist market in China? First, you cut 4/5 off the asking price. If the vendor says 500RMB, you ask for 100RMB. Next you insist paying what you think the product is worth, and if there's no deal, you walk off. The vendor will chase after you and say, ok, this time only.

[c1ue]

Re: We Yuanna Stronger Yuan...

The stronger yuan talk makes no sense until you consider the dollar devaluation game plan: once the deflation/inflation tug of war right now between assets and commodities tilts, having higher prices due to a stronger yuan gives a nice someone else to blame.

[touchring]

Re: We Yuanna Stronger Yuan...

The stronger yuan talk makes no sense until you consider the dollar devaluation game plan: once the deflation/inflation tug of war right now between assets and commodities tilts, having higher prices due to a stronger yuan gives a nice someone else to blame.

http://www.census.gov/foreign-trade/...5700.html#2010
Trade with China : 2009

NOTE: All figures are in millions of U.S. dollars, and not seasonally adjusted unless otherwise specified.

Month	Exports	Imports	Balance
January 2009	4,178.1	24,748.0	-20,569.9
February 2009	4,678.4	18,874.5	-14,196.1
March 2009	5,569.9	21,187.7	-15,617.8
April 2009	5,164.9	21,918.7	-16,753.8
May 2009	5,247.8	22,731.5	-17,483.8
June 2009	5,549.2	23,979.1	-18,430.0
July 2009	5,274.3	25,691.2	-20,416.9
August 2009	5,553.1	25,784.7	-20,231.7
September 2009	5,813.7	27,914.9	-22,101.2
October 2009	6,857.4	29,520.8	-22,663.4
November 2009	7,326.3	27,549.9	-20,223.6
December 2009	8,362.9	26,501.0	-18,138.1
TOTAL	69,576.0	296,402.1	-226,826.1

The US imports $300 billion worth of goods from China a year.

Let's assume that 50% of the prices can be attributed to Chinese wages and local costs ($150 billion), and the other 50% on commodities (in dollars).

$150 billion is only 1% of the US economy of $15 trillion.

Let's say the Yuan goes up by 20%, so that $150 billion may increase by up to $30 billion. $30 billion is 0.2% of the US economy. And if I'm not wrong, $30 billion is about what Goldman Sach pays in bonuses in a single year.

And we haven't even talked about product durability.
http://newsblogs.chicagotribune.com/...m-drywall.html

Factor in manpower (costly in developed countries) in installing the product, replacing, and transport....