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qimingfu (Gloucester Qi)
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Bad or Good, if RMB continues appreciation?

RMB appreciation has stolen much limelight in relationship between China and America. It's also a fresh and ancient  topic  on our lips. To my limited knowledge, I, even though scrummed to seek every scraps on it, still cannot trace back convincing answer to it.

Question 1: what does it mean that trade deficit to a country?
I know that trade balance is significant to a country. If a country enjoys balance-in-favor, that means its counterparts pay much on consumption of its products and services just like a debter. If the trend does not take a reverse turn, such countries, no matter how strong and wealthy across the world, will  give away to their coveting opponents and sit in angry silence.

But is it the same case in trade between China and America?

In order to enhance China's competitive strength, Chinese government has devalued labors'  wage and kept blind eyes on majority people's deteriorating medical care and education and other social undertakings. Majority have paid the price of rapid economic growth: in the form of air and water pollution, the rich richer and the poor poorer, "enclosure movemnet" that forced thousands of millions of farmers to lose their bread guarantee---earth, with the same ground of widespread bribe and corruption in "people's servants".

In this sense, is it wise to take pride in myriad deficit with America?

Question 2: what will happen if RMB appreciation is embarked on in function?

[ Last edited by chinadaily at 2007-1-13 09:08 AM ]

2006-12-15 08:47 PM

greendragon
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Reply #1 qimingfu's post

I have a few points to your question.

Well, i think it is wrong to say that Chinese government "devalue" Chinese worker salary! It's more like China has kept major commodities subsidized to make it affordable to the poorest Chinese people!

The Chinese people owe a lot of gratitude to the BUREACRATS and COMRADEs of the CCP for having the foresight and vision to create the structures that has made China recovery in economy possible. There is also a GENTLEMAN class of citizens who has kept track of business, technology, foreign investments!

------------------------------------------------------
You message is so simple and yet will need a lot to explain...but i have additional points...

We might need to appreciate our Rmb to ensure commodities imported remains affordable to the masses while balancing to prevent unbearable debts that USA now possess at serious detriment to its national stablity!

Green Dragon
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New Middle Kingdom

2006-12-19 01:49 PM

greendragon
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Where is Lin Yi city?

2006-12-19 01:50 PM

caringhk (O Sweetie&Me go laojia. ..)
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QUOTE:

Originally posted by qimingfu at 2006-12-15 20:47
RMB appreciation has stolen much limelight in relationship between China and America. It's also a fresh and ancient topic on our lips. To my limited knowledge, I, eve ...

What i can see is that my USD will buy me less things in China!!!

It also means cheaper to pay USD loans now, the quicker the better!!!

2006-12-19 02:03 PM

greendragon
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Reply #4 caringhk's post

wise of you!

it should be delay in paying US$ loans...unless US$ value remain and interest rate higher...that you will cry!

it could go many ways!

ha ha ha

hey, this Weekend, can i have this menu at the spa...

(1) Rib Pork with "Yin choy" soup.
(2) Stir fry celery with beef.
(3) Some cakes from the bakery
(4) Fresh cut fruits
(5) Fried Chicken.

thank you!

Green Dragon

2006-12-19 02:10 PM

caringhk (O Sweetie&Me go laojia. ..)
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QUOTE:

Originally posted by greendragon at 2006-12-19 14:10
wise of you!

it should be delay in paying US$ loans...unless US$ value remain and interest rate higher...that you will cry!

it could go many ways!

ha ha ha

hey, this Weekend, can i have ...

You can have all those in the Menu!!!

I was in KL last week for few days!!!

You know who followed me.

our secret!!!

Go to LOT10 & look for Crystal Jade China restaurant.

Or run opposite to Wang Plaza as they got good Roasetd ducks + lots of varieties there!!! Always full of people!!!

2006-12-19 02:14 PM

greendragon
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Nooooo Was it JOLIN?

She's a beautiful gal....

Green Dragon

2006-12-19 02:51 PM

caringhk (O Sweetie&Me go laojia. ..)
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QUOTE:

Originally posted by greendragon at 2006-12-19 14:51
She's a beautiful gal....

Green Dragon

How nice if Jolin!!!

& hear her oohs & aahs.....

This one like A Jolie!!!

Pouting mouth!!!

2006-12-19 02:57 PM

caringhk (O Sweetie&Me go laojia. ..)
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If USD depreciates,

Imported good like Mobile phones

gets CHEAPER in local currenies!!!

2006-12-19 02:59 PM

greendragon
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Reply #9 caringhk's post

no so true....

Labour cost, profit margin in the final product is always 90% of the cost of a consumeable or durables....
It would remain the same in local currency..

but commodities will become cheaper for the masses!

Hey buddy!

Are you like sleeping?

Green Dragon
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Helping people to analyse trends worldwide!

2006-12-19 03:05 PM

#10

caringhk (O Sweetie&Me go laojia. ..)
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QUOTE:

Originally posted by greendragon at 2006-12-19 15:05
no so true....

Labour cost, profit margin in the final product is always 90% of the cost of a consumeable or durables....
It would remain the same in local currency..

but commodities will be ...

ya-kah???

let's say oil from USD 75 to USD60,

is there SAVINGS from petrol???

i meant IMPORTED PRODUCTS!!!

2006-12-19 03:08 PM

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greendragon
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Reply #11 caringhk's post

ya lah!

I was in Singapore when they started to appreciate the S$ against other currencies!
Yes, local product price did not change...

Only the commodities price fell...
but Merchants did not transfer the profits to the people...

then we had fish dealers, vegetable dealers buying Mercedes Benz in Singapore!

Hey buddy....i am on-the-ground economist!
Not away from the scene guy!

ha ha ha

Green Dragon
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Malaya

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Helping YOU to understand economic matters better!

2006-12-19 03:12 PM

#12

caringhk (O Sweetie&Me go laojia. ..)
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QUOTE:

Originally posted by greendragon at 2006-12-19 15:12
ya lah!

I was in Singapore when they started to appreciate the S$ against other currencies!
Yes, local product price did not change...

Only the commodities price fell...
but Merchants did n ...

So you join those dealers class with yr "China automobiles or Bulldozers

&

have yr very OWN BENZ 500 E class!!!

U know S'pore too has many nice chicks walking around Chinatown!!!

2006-12-19 03:23 PM

#13

greendragon
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Reply #13 caringhk's post

You can try PARAGON....many nice chicks....

looking for Branded goodies!!!!!

Really pretty..........best spot................a posh Western Restaurant on 2nd floor of old wing of Paragon!
Take the table next to the escalator.

Green Dragon

2006-12-20 12:34 PM

#14

caringhk (O Sweetie&Me go laojia. ..)
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QUOTE:

Originally posted by greendragon at 2006-12-20 12:34
You can try PARAGON....many nice chicks....

looking for Branded goodies!!!!!

Really pretty..........best spot................a posh Western Restaurant on 2nd floor of old wing of Paragon!
Ta ...

Paragon!!!

Wah, nice place.

Tell me near which hot spot???

SJ,SS,SB,BB,PJ,etc....

2006-12-20 01:45 PM

#15

caringhk (O Sweetie&Me go laojia. ..)
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QUOTE:

Originally posted by jetsam at 2006-12-20 21:23
The rise of the renminbi against the dollar will do little to reduce US deficits. The world's fattest nation will simply buy elsewhere. Slightly greater will be buyers of US crud exports. But this ...

so conclusion is worLd OVER-DEPENDENT ON USD!!!

IS THERE ANOTHER CURRECNCY TO CHANGE THAT???

2006-12-21 11:10 AM

#17

greendragon
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Reply #17 caringhk's post

My opinion is that Rmb opportunity will come later.....as trade export range of China expands! and its value become the largest in the world....

and the world can depend on Rmb...
and China does not mind running a small deficit every year!!!

The Best Chance now is EURO....
with the Sterling Standard having a Outside Dark Horse opportunity!

Green Dragon

2006-12-21 01:20 PM

#18

caringhk (O Sweetie&Me go laojia. ..)
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QUOTE:

Originally posted by greendragon at 2006-12-21 13:20
My opinion is that Rmb opportunity will come later.....as trade export range of China expands! and its value become the largest in the world....

and the world can depend on Rmb...
and China doe ...

A good suggestion!!!

By then RMB becomes WMB(worldmingbee)

2006-12-21 01:23 PM

#19

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