Thursday, April 17, 2008

The 15% Depreciation of the USD vs. China's Yuan

Chinese Yuan/USD, 5-year trend.

10 Comments:

At 4/19/2008 9:45 AM, Anonymous Anonymous said...

Money, it seems, is seeking more money.

Investment funds looking to fatten returns are putting money in crop futures to spread the risk in their portfolios. The mortgage market is weak and other commodities such as oil and metals are moving too wildly.

Analysts say traditional spikes, driven by supply and demand, have been pushed up. Corn traded at about $2.60 a bushel in early 2006. Earlier this month, the May contract reached a record $6 a bushel.

Richard Brock, Milwaukee-based commodities analyst, said index funds are "literally running the market" with billions of dollars in play. "It's absolutely obscene," he said.

Index fund managers see free-market economics at play.

http://www.iii.co.uk/news/?type=afxnews&articleid=6666194&action=article


"When you don't have enough budget the fights become more intense over those precious resources," said Tom Buis, president of the National Farmers Union. "You kind of have this perfect storm, all coming together at the same time, and you add in a lot of new players to the farm bill process, people that just say, 'Oh, farmers are greedy' or 'Farmers don't need this.'"

http://www.iii.co.uk/news/?type=afxnews&articleid=6666194&action=article

This is going to end bad.

 
At 4/19/2008 9:51 AM, Anonymous Anonymous said...

The chineese are getting richer and Americans are getting poorer. Get use to it. Like Japan earning for major US corporations will now be dependent on currecy devaluation and a workforce which is evicerated by infaltion keeping wages low in real terms.

Some of the nation's biggest corporate powerhouses -- across all industries -- have used the greenback's retrenchment to shield themselves from slumping profit margins. Declines against world currencies make U.S. products look cheap overseas, and translate into big returns when sales are converted back into dollars.

http://www.iii.co.uk/news/?type=afxnews&articleid=6666198&action=article

 
At 4/21/2008 5:01 AM, Blogger juandos said...

From the interactive investor link put up by anon @ 9:51 AM: "By comparison, countries in Europe and along the Pacific Rim are showing robust growth. And many companies, like IBM, have even adjusted their strategy to focus more of the business in areas like China and Brazil to take advantage of the situation"...

Hmmm, what are the corporate tax rates levied against companies in Europe and the Pacific Rim as compared to the high rate here in the US?

How many other countries waste 14.9% of their economy on government regulatory compliance?

 
At 4/21/2008 12:18 PM, Anonymous Anonymous said...

Am waiting to hear the Chinese criticize the U.S. as a currency manipulator...or is currency manipulation only something that other nations do?

 
At 4/21/2008 12:53 PM, Blogger juandos said...

"or is currency manipulation only something that other nations do?"...

LOL! Ask your boy George Soros...ROFLMAO!

 
At 4/21/2008 10:16 PM, Anonymous Anonymous said...

Have some compassion for a fellow creature. Spare me George Soros, a fate worse that a fate worse than death!

It is at least interesting to read such sweeping generalizations and wonder that there are people who think such claptrap intelligible. Thanks for the link. Definitely a ROFLMAO!

At least, I finally looked up your acronyms.

 
At 4/22/2008 2:37 PM, Blogger juandos said...

"It is at least interesting to read such sweeping generalizations and wonder that there are people who think such claptrap intelligible"...

Hmmm, reading your comments one quickly realizes you aren't into intelligible...

 
At 4/22/2008 4:47 PM, Anonymous Anonymous said...

Was refering to Soros' piece regarding the current liquidity crisis. Mr. Soros seems to have a strong ideological bias and supplies little data to support his arguments. I did not bother to read his other articles. There did not seem to be much point.

I don't think you like Soros any better than me. My original comment about currency manipulation was ironical rather than an assertion that the US was manipulating its currency.

So many on the left have worked overtime bashing China in regard to revaluing its currency that it seemed ironic that they might be liable to the same criticism. The devaluation of the US dollar is a concern and perhaps, it is inappropriate to make light of this situation in particular since so many countries peg their currencies against the USD.

 
At 4/22/2008 4:49 PM, Blogger juandos said...

"Was refering to Soros' piece regarding the current liquidity crisis. Mr. Soros seems to have a strong ideological bias and supplies little data to support his arguments"...

Sadly you didn't identify what you were refering to in your earlier comment...

Why was that?

 
At 4/22/2008 6:59 PM, Anonymous Anonymous said...

Given that I don't agree with George Soros on any subject aside from perhaps the weather, I was trying for humor to disassociate myself from his worldview. When you have to explain it, it means you definitely laid an egg.

But then, I guess you are kinda pulling my chain just a bit...in a very caring and nurturing way.

Being a Canadian, I am used to having a currency that is the source of international humour. My apologies for any offence.

 

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