Lake Erie Conservative

thoughtful discussion(s) about issue(s)

… Why China is A Problem [#currency exchange]…

Posted by paulfromwloh on Thursday,November 24th,2016

.. yeah , they still are a problem ..

.. the big problem [first] is understanding . The name of the currency is the Renminbi . The base unit of the currency is the yuan . Get it . I didn’t , for a long time . Having the different names makes things confusing ..

.. yes , China is a major power . Economically , without question . Socially , I would question that a great deal . Military they are , but only to a point . Their naval power is growing steadily , but their army ‘s power is limited . India is in the neighborhood , and geography limits the possibilities of what the Chinese might want to do . Also , there are modern First World powers [Japan , the ROK , and Taiwan] around to act as a check on them …

.. [h/t — http://en.wikipedia.org(Renminbi)]..
.. [link] to the blog post ..

.. one is that the yuan is not fully convertible . If it were , China would be more fully exposed to the ” winds ” of the the financial markets . Whatever they do and whatever they say would affect them . Somehow , I do not think that the P.R.C. does not like the idea of that a whole lot …

.. two is that the yuan is being ” managed ” at a level that is far below its normal value . Ifthe yuan were allowed to float , then Chinese companies would be squeezed bythe competitive winds of a fully functioning market . I do not think that the P.R.C. likes that , either ..

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: