tag:blogger.com,1999:blog-6616959642391988608.post2771762621508653918..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: The Chinese "manipulate" their currency to our advantageScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-6616959642391988608.post-50389293548158856722010-10-17T08:19:26.850-07:002010-10-17T08:19:26.850-07:00One simple explanation for why Chinese inflation i...One simple explanation for why Chinese inflation is accelerating is that the dollar (to which the yuan is tied) is depreciating. If China wants to keep inflation low, it will need to allow the yuan to float up against the dollar.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-55912872601742984792010-10-17T03:19:24.275-07:002010-10-17T03:19:24.275-07:00Scott says "[Low Chinese inflation] alone is ...Scott says "[Low Chinese inflation] alone is almost proof that they haven't been keeping the currency artificially weak."<br /><br />Almost proof, maybe, but not quite. The above statement leaves out one link in the chain between Chinese currency policy and Chinese inflation. When the Chinese central bank (PBoC) adds dollars to its reserves in an effort to keep their currency from Ed Dolanhttps://www.blogger.com/profile/08757995049056872214noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-50162810201533986902010-09-16T09:28:45.917-07:002010-09-16T09:28:45.917-07:00Buddy: a good part of the reason that China is gro...Buddy: a good part of the reason that China is growing so strongly is the gradual deregulation of its economy over the years. This process is ongoing, and authorities are relaxing capital controls as well. I agree that China is not a free market, but it is getting freer all the time. Plus, the rising yuan translates into rising purchasing power for all Chinese consumers. Things could be better inScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-68213230395202427082010-09-16T08:44:24.194-07:002010-09-16T08:44:24.194-07:00How can it be argued that inflation in China is th...How can it be argued that inflation in China is the same as the U.S. when China's growth rate is so much higher? China's growth rate is reported at 10.3% but its inflation rate is only 3.3%. There are many recent reports that can be found at SeekingAlpha.com that food prices are soaring in China.<br /><br />How can it be argued that only a small number of U.S. businesses is harmed by Buddy R Pacificohttps://www.blogger.com/profile/12737107556268024013noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-20330660691228529032010-09-16T08:08:43.746-07:002010-09-16T08:08:43.746-07:00Randy,
We should already have energy independence...Randy,<br /><br />We should already have energy independence. Look at Brazil. You do not need to keep drilling for oil to become energy self sufficient. Instead, we let the oil lobbyist dictate what our energy policy has become.<br /><br />If Brazil can do it, surely we could have/can invest what it takes to move away from middle eastern oil, no?Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-31444729247406220502010-09-16T08:08:02.996-07:002010-09-16T08:08:02.996-07:00This comment has been removed by the author.Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-26104249955336475432010-09-16T07:59:59.627-07:002010-09-16T07:59:59.627-07:00Randy,
I agree. Energy production is something th...Randy,<br /><br />I agree. Energy production is something the US does very well. It is painful to me to watch this government SHUT DOWN an industry (deepwater drilling) killing tens of thousands of highly skilled jobs producing domestic oil while we import it from Venezuela, and the middle east. <br /><br />Our energy secretary gave a speech recently lamenting our dependece on foreigh energy and Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-53095615623805317672010-09-16T07:53:15.152-07:002010-09-16T07:53:15.152-07:00The USA is still the top manufacturer in the world...The USA is still the top manufacturer in the world. China is second but closing. But they have 5 times the people!<br /><br />The only reason China is manufacturing our tape dispensers and calculators is cheap labor. Remember when everything was manufactured in Japan? Now nothing cheap comes out of Japan. It's all moved to China and Korea. Japan's cost have gone up. <br /><br />Now Jeffhttps://www.blogger.com/profile/04068805988034886750noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-61548499149853116712010-09-16T07:18:36.531-07:002010-09-16T07:18:36.531-07:00"And other times I think we should at least a..."And other times I think we should at least attempt to compete in areas where we can, and keep as many critical skills at home as possible"<br /><br />How about we start with energy production. Huge, huge benefit with crucial reduction in trade deficit; reduction in defense budget; create jobs here. Nuclear, the Pickens plan, etc. Unfortunately the argument is too polluted by randyhttps://www.blogger.com/profile/16368254229927808998noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-31021168204913715002010-09-16T05:54:27.730-07:002010-09-16T05:54:27.730-07:00I have for many years subscribed to Scott's vi...I have for many years subscribed to Scott's view on our trade relationship with China (and others as well). Lately however I find myself more sympathetic to Pub's point of view. Intellectually I understand the law of comparative advantage and how it works to make everyone more prosperous but part of me is saddened deeply for what we lose by forever following the yellow brick road of Johnhttps://www.blogger.com/profile/11652253509768573561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-82425310963869263162010-09-15T21:13:25.690-07:002010-09-15T21:13:25.690-07:00If we outsource all of our manufacturing in return...If we outsource all of our manufacturing in return for lower prices, won't we eventually fall behind on technological advances in those industries + the positive spillover into other areas? Especially when we are swapping manufacturing for service oriented jobs?<br /><br />I sat next to a nice crane salesman on a flight home from Portland the other day. He's spent 30 years selling cranes.Public Libraryhttps://www.blogger.com/profile/00017383928897945054noreply@blogger.com