OK guy, what is it going to be:
"all of the ASEAN states have pegged their money to the greenback like China has, so there's nothing anyone has to complain about."
Or is this your position:
"You seem not to know the difference between freely tradeable (which the ASEAN currencies are and Chinese Yuan is not) and peg/control"
Interesting you call a known fact a theory:
"If we go with your theory of cheap Yuan to export goods to the world, imports into China would be expensive, yes?"
Imports are very expensive in China. Just for example local grapes here are 5-7 Yuan a Jing (approximately a pound) and imported grapes are 15-30 a jing. So not only does undervaluing your currency flow your goods overseas at a disadvantage to other countries goods but it also makes your products uncompetitive in China. Plus in China you can take other countries products, copy them and sell them and not have to pay royalties to the host country. For example I can get a cracked English version of Windows 7 on the market here for 8 yuan or about a 1.20 US. This is money that does not come back to us in fair trade. I can show you examples of this for every industry. Chevrolet came out with a small gas saver car and China blatantly copied it and sold it under the Chery car line. Without having to spend money on R&D they can sell the car for much cheaper.
OH, thank you for proving beyond any shadow of doubt that China's market is not being run on fundamentals of business but cheap money flowing in on speculation. People are borrowing cheap money from the banks and dropping it into the markets. Ala 1929 style.
Qing up 11% on very good volume (4 times yesterday's) on no news at mid-day on the Hong Kong Stock Exchange. Qingling up 10% today. All automakers in China did great.
Again you show a total lack of understanding what goes on here. Where are they going to put all these cars? If you lived here and saw what I am talking about, you would know this is a serious problem. It just cant be dismissed with a couple of lines of print. Americans who have space everywhere dont know what it is like to live in a country where there are no parking lots. In fact let me add to this list, no ball fields (a couple of schools do have soccer fields) but these are not available to the public at large.
Oh by the way, I have lived in China for 7 years and am one of the very few foreigners in this area still running a successful business. So many have come and gone thinking they can make it here using their usual thought processes. Even the Chinese will say, This is China when you ask them why do you do it this way. Here is my advice. When a govt. official says no more cheap loans, the market will dive, if you have any stock you wont be able to find any buyers for it. You will be in a death spiral. This happens so often in China and I have many Chinese and foreign friends that have lost their shirts, pants, shoes, underwear, etc. in the markets here. So good luck guy, it is very obvious you are not going to listen so enjoy the ride while you can. I hope you get out in time.
"all of the ASEAN states have pegged their money to the greenback like China has, so there's nothing anyone has to complain about."
Or is this your position:
"You seem not to know the difference between freely tradeable (which the ASEAN currencies are and Chinese Yuan is not) and peg/control"
Interesting you call a known fact a theory:
"If we go with your theory of cheap Yuan to export goods to the world, imports into China would be expensive, yes?"
Imports are very expensive in China. Just for example local grapes here are 5-7 Yuan a Jing (approximately a pound) and imported grapes are 15-30 a jing. So not only does undervaluing your currency flow your goods overseas at a disadvantage to other countries goods but it also makes your products uncompetitive in China. Plus in China you can take other countries products, copy them and sell them and not have to pay royalties to the host country. For example I can get a cracked English version of Windows 7 on the market here for 8 yuan or about a 1.20 US. This is money that does not come back to us in fair trade. I can show you examples of this for every industry. Chevrolet came out with a small gas saver car and China blatantly copied it and sold it under the Chery car line. Without having to spend money on R&D they can sell the car for much cheaper.
OH, thank you for proving beyond any shadow of doubt that China's market is not being run on fundamentals of business but cheap money flowing in on speculation. People are borrowing cheap money from the banks and dropping it into the markets. Ala 1929 style.
Qing up 11% on very good volume (4 times yesterday's) on no news at mid-day on the Hong Kong Stock Exchange. Qingling up 10% today. All automakers in China did great.
Again you show a total lack of understanding what goes on here. Where are they going to put all these cars? If you lived here and saw what I am talking about, you would know this is a serious problem. It just cant be dismissed with a couple of lines of print. Americans who have space everywhere dont know what it is like to live in a country where there are no parking lots. In fact let me add to this list, no ball fields (a couple of schools do have soccer fields) but these are not available to the public at large.
Oh by the way, I have lived in China for 7 years and am one of the very few foreigners in this area still running a successful business. So many have come and gone thinking they can make it here using their usual thought processes. Even the Chinese will say, This is China when you ask them why do you do it this way. Here is my advice. When a govt. official says no more cheap loans, the market will dive, if you have any stock you wont be able to find any buyers for it. You will be in a death spiral. This happens so often in China and I have many Chinese and foreign friends that have lost their shirts, pants, shoes, underwear, etc. in the markets here. So good luck guy, it is very obvious you are not going to listen so enjoy the ride while you can. I hope you get out in time.
