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Will US$ value fall by 5% vs. Asian, European, British currencies? [Copy link] 中文

Rank: 8Rank: 8

Post time 2010-11-5 10:02:40 |Display all floors
The American did what they said, they would not do!
They minted more CASH.

This could exacerbate the price of commodities, and reduce the value of the dollar versus British Club, Trade Route, China and BR(I)M currencies! What the Americans intend to do with the additional money is keenly watched globally!

hmmmm

cheerios!

Green DRagon
Game Master

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Rank: 8Rank: 8

Post time 2010-11-5 16:49:39 |Display all floors
the Nauture of imperialism~~

That's true~~

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Rank: 4

Post time 2010-11-5 20:29:15 |Display all floors

Printed RMB 10T & printing another RMB 7T

China minted RMB 10 trillion in 2009 and expect to print another RMB 7 trillion this year. China's M2 grew 27% in 2009 and continues to grow about 20% in 2010. Compared to the US's $600 billion in QE2 and $700 billion in 2009 for QE1, China's economic stimulus and money growth is far greater than the US or any country in the world. Compared to the US, China's GDP is only 1/4 of the US but the size of China's M2 growth is out of proportion. In fact, it continues to cause runaway inflation and skyrocketing housing prices from 2009 to the present time, and the near future. Hence, China runaway inflation is indigenous and not imported.

Are you suggesting that China is also imperialist? Surely not.

In fact, I recalled last year, Chinese officials were sniggering that the US only spent a miserly $700 billion compared to China's RMB 4 trillion stimulus. Now the tune is quite different. Same practise but different response? And the Parrots follow suit.

The Obama administration and the liberal Democrats have disappointed US voters - no question about it. Even the mainstream diehard liberal pro-Democrat media are now saying that the economic recovery has stalled and voters have now lost confidence and moving to the Conservative cause. QE2 is a belated and frantic attempt to try to resusitate the jobless recovery. It remains to be seen if it will work and create more jobs.

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Rank: 6Rank: 6

Post time 2010-11-5 23:02:26 |Display all floors
The american politicians are facing a far more fundamental problem.
It's commonly known that people invest when they expect returns on their investment and if their investments are safe. But due to the huge debts America and american households are facing, they're not willing to consume, which leads to a further decrease in expected returns on investments.
On the other hand, US-governments are huge money spending machines: democrats want to invest in their social care programs and stuff, while republicans ease taxes like crazy. Both of these policies ultimately lead to more debts - and therefore to less stability - which is why people are more afraid to invest in the US economy.

Qunatitative easing at least brings down debts, as it sacrifices debts to inflation, but it is not a sustainable solution, as the nation's economy gets less stable. However, the US is lucky that so many developing countries and Japan buy its debts and therefore prevent it from getting unstable - and this is why there is a strong incentive to print more money and get higher governmental debts.
In the end, everyone loses except for the upper class in China and in the US.

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Post time 2010-11-6 05:05:50 |Display all floors

Reply #3 1country2sys's post

and $700 billion in 2009 for QE1


US$700 is fiscal spending
QE is US$1.7 trillion

if I am not wrong

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Rank: 6Rank: 6

Post time 2010-11-6 05:06:41 |Display all floors
where did you get these data?

China minted RMB 10 trillion in 2009 and expect to print another RMB 7 trillion this year. China's M2 grew 27% in 2009 and continues to grow about 20% in 2010.

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Rank: 6Rank: 6

Post time 2010-11-6 23:47:21 |Display all floors
where did you get these data?  QUOTE: China minted RMB 10 trillion in 2009 and expect to print another RMB 7 trillion this year. China's M2 grew 27% in 2009 and continues to grow about 20% in 2010.


Official Chinese statistics - I've read those numbers on one of my client's website, www.china.org.cn, which quoted the statistics bureau. I guess 1country2sys found it in China Daily...

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