tag:blogger.com,1999:blog-6616959642391988608.post1920062783917664912..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Dollar weakens against the yuanScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6616959642391988608.post-5409475394315834912010-06-22T07:45:54.302-07:002010-06-22T07:45:54.302-07:00Bill,
There are many millions of moving parts in ...Bill,<br /><br />There are many millions of moving parts in the market. It is impossible to consistently predict hour to hour moves. If anyone tells you they can, grab your wallet. If they truly can, why do they need you (or anyone)? <br /><br />I think some of the announcement was for public consumption ahead of the G20 meeting. However, I do believe the arguments for allowing an appreciation Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-28708535855481100682010-06-21T18:26:00.605-07:002010-06-21T18:26:00.605-07:00Fear contributes to s stronger dollar. I don'...Fear contributes to s stronger dollar. I don't know what the source of fear was today.<br /> Scott, you should be president of the Fed. and John POT makes a lot of senseronraschhttps://www.blogger.com/profile/14708698068353771219noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-18934500112647135502010-06-21T18:11:35.123-07:002010-06-21T18:11:35.123-07:00Scott,
It seems that the market lost enthusiasm f...Scott,<br /><br />It seems that the market lost enthusiasm for this as the day wore on and the dollar is now trading higher. Why the reverse in sentiment?Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-9436252930923365312010-06-21T12:58:49.939-07:002010-06-21T12:58:49.939-07:00As always, China fascinates. They are not a free m...As always, China fascinates. They are not a free market, but rather a fascist-mercantile state with some private-sector elements.<br />In that, I agree with Scott that imports may or may not go up due to a cheaper yuan--trade is controlled anyway. They will import as much as powerful groups inside want to import. <br />We can only hope that China matures politically and economically, and chooses Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-80215456353050864152010-06-21T12:06:25.737-07:002010-06-21T12:06:25.737-07:00I can see the logic behind the cynical point of vi...I can see the logic behind the cynical point of view, but in the end I think this move makes sense for China. Allowing the yuan to appreciate means keeping inflation in check. Low and stable inflation and a strong currency are essential ingredients to a strong and prosperous economy. Doing the right thing is always a good thing. If doing the right thing means placating G20 politicians, then that&Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-59483729714543369632010-06-21T11:57:39.263-07:002010-06-21T11:57:39.263-07:00Scott,
Very good post. You explain the relationsh...Scott,<br /><br />Very good post. You explain the relationships well. <br /><br />There seem to be two points of view making the rounds re the appreciation of the yuan:<br /><br />1. It is a cynical ploy to placate the US just prior to the G20 meetings. They have little interest in allowing meaningful increases in the value of their currency and remain 'manipulators'. <br /><br />2. This Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.com