View Full Version : What happens to the US Econ. If China increases the Yuan?
alkemical
10-23-2012, 01:55 PM
Looking for some info - i've seen both "floor & ceiling" reports...
elsid13
10-23-2012, 03:05 PM
If they un-peg yuan to the dollar then their cost advantage isn't as great and you should see business moving to other lost cost countries for manufacturing.
DenverBrit
10-24-2012, 12:40 AM
India will be delighted.
Rohirrim
10-24-2012, 07:19 AM
So will SE Asia.
mhgaffney
10-24-2012, 12:07 PM
The dollar will evaporate at an even faster rate.
For one thing we might be able to compete with them for world markets in the products we still make and we might not buy so much crap from them.
Another thing is they will have far less buying power with our debt at least internally
alkemical
10-24-2012, 02:52 PM
Thanks everyone - i'm just trying to get a bigger picture view of this issue.
orinjkrush
10-24-2012, 02:57 PM
its in all nations' self interests to devalue, so as to maximize exports.
in the current global capitalist economy, its total thermonuclear-currency wars, and a race to the monetary bottom.
chadta
10-24-2012, 03:04 PM
its in all nations' self interests to devalue, so as to maximize exports.
in the current global capitalist economy, its total thermonuclear-currency wars, and a race to the monetary bottom.
see I dont get this, I think back to 20 years ago when the Canadian dollar was 65 cents to the US dollar, sure we sold you guys alot of crap, but whatever we bought from you and everybody else was expensive. Our dollars have been basically on par for what 5 years now, and we are still getting hosed on some items, like books, that say on the back 19.99 US 24.95 Canada, but other stuff is about the same price, and we still sell you guys alot of crap.
I spend a fair bit of time in the US, I live 45 minutes away from buffalo, and 2 hours from detroit, and I have a nexus card, its just as close for me to go to Buffalo for a dinner out at a US place that I cant get here, as it is to go to Toronto, but alot less traffic, and while im there I get groceries, now i mostly buy stuff that I just cant get at home, where I used to buy stuff that was way cheaper.
I guess what im trying to say is what good is having exports do better if you cant afford to buy anything you import ?
orinjkrush
10-24-2012, 06:14 PM
read the fantastic book "currency wars". it will help explain the dynamics.