China to announce currency revisions

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investorzzo's picture
investorzzo
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Posts: 1182
China to announce currency revisions

“The Chinese government is set to announce a revision of its currency policy in the coming days that will allow greater variation in the value of its currency combined with a small but immediate jump in its value against the dollar, people with knowledge of the consensus emerging in Beijing said Thursday.”

Translation: Minor appeasement of those annoying Americans. Anything beyond a tiny incremental change would be surprising . . .

http://www.nytimes.com/2010/04/09/business/global/09yuan.html

My problem with this, is even if China does even the playing field of the renminbi, how can America compete with 50 cents to 3 dollars and hour wage or lack of regulations that America has to deal with. Jon

DrKrbyLuv's picture
DrKrbyLuv
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Re: China to announce currency revisions

investorzzo wrote:

My problem with this, is even if China does even the playing field of the renminbi, how can America compete with 50 cents to 3 dollars and hour wage or lack of regulations that America has to deal with.

Jon, I have to disagree on this one...it is commonly believed that slave wages give China an unfair advantage.  But Africa, Indonesia and Latin America are equally willing to work for low wages but their economies are languishing.  No doubt, China's business expenses are less than their American competitors but I agree with Ellen Brown (Web of Debt):

"Something else distinguishes China, and one key difference is its banking system.  China has a government-issued currency and a system of national banks that are actually owned by the nation....The Peoples Bank of China is unusual in acting as a national bank, focused on the country not on the currency.  The notion of "national banking" as opposed to private central banking goes back to Lincoln, Carey and the American nationalists."

Henry C K Liu wrote "The mandate of a national bank is to finance the sustainable development of the national economy...The mandate of a modern day [private] central bank is to safeguard the value of a nations currency in a globalized financial market...Through economic recession and negative growth if necessary...The best monetary policy in the context of central banking is...set by universal rules of price stability, unaffected by the economic needs or political considerations of individual nations."

We have a private parasitic banking system while they have a banking system designed to finance national commerce.  That's the big reason they are a creditor nation while we are a debtor nation.

Larry

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Carl Veritas
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Re: China to announce currency revisions

Central banking  under a planned economy all run by the government.     Interesting.     I wonder how the central bank will control inflation once it gets underway.    I'm sure it will never happen since the g men are in charge, not the evil private bankers.

Don't look now, but the evil international banking cartel might have infiltrated rural China.    It seem they  are not getting enough of that government money  from Beijing in their area.   How could this be if they could create money at will?   Private lending is restricted by its unauthorized status and based upon mutual trust between lenders and debtors.        But the money czar seem to be willing to allow it, this must mean the international money cabal has infiltrtated the ranks of the"private" Peoples Bank Of China, right Larry?  

http://news.xinhuanet.com/english/2009-03/04/content_10943730.htm

investorzzo's picture
investorzzo
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Re: China to announce currency revisions

National Labor Committee report on Chinese CE factories uncovers deplorable conditions

KYE recruits hundreds-even up to 1,000-"work study students" 16 and 17 years of age, who work 15-hour shifts, six and seven days a week. In 2007 and 2008, dozens of the work study students were reported to be just 14 and 15 years old. A typical shift is from 7:45 a.m. to 10:55 p.m.
Along with the work study students-most of whom stay at the factory three months, though some remain six months or longer-KYE prefers to hire women 18 to 25 years of age, since they are easier to discipline and control.
Workers are paid 65 cents an hour, which falls to a take-home wage of 52 cents after deductions for factory food.
Workers are prohibited from talking, listening to music or using the bathroom during working hours. As punishment, workers who make mistakes are made to clean the bathrooms.
Fourteen workers share each primitive dorm room, sleeping on narrow double-level bunk beds. To "shower," workers fetch hot water in a small plastic bucket to take a sponge bath. Workers describe factory food as awful.
Workers can only leave the "compound" during regulated hours.

http://www.engadget.com/2010/04/14/national-labor-committee-report-on-ch...

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