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DoubleBubbleTrouble

Ft: Us Bill May Prompt Tough Action On Renminbi

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http://news.ft.com/cms/s/63a56aa0-bdfc-11d...00779e2340.html

The administration of President George W. Bush will face mounting pressure to take tougher action against China over the value of its currency with the introduction on Tuesday of legislation that would all but force the US Treasury to brand China as a currency manipulator.

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The proposal, drafted by Senator Charles Grassley, the chairman of the powerful Senate Finance Committee, and Max Baucus, the committee’s leading Democrat, would threaten new sanctions against countries that are found to have “currency misalignments” with the US, according to people with knowledge of the proposal.

Edited by DoubleBubbleTrouble

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Note, of course, that if the Chinese are forced to revalue their currency upwards, all those cheap DVD players that Brown is relying on to keep 'inflation' low will suddenly not be so cheap anymore.

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The Chinese have taken total advantage of the 1% rates in the US and used the cheap money to build a massive industrial base whilst investing in urban infrastructure. The ghost is up now and China has already begun talking about revising growth forcasts downwards.

China holds masses of US Treasury notes and bonds and would want to keep the Yuan where it is whilst they mature, meaning they can then get more Yuan for their dollars when they bring the money home.

The US is all too aware of this and senior members of the US administration feel they have already paid for chinese roads, railways, bridges and airports and that by paying out on the bonds and notes the chinese government holds when their currency is low would allow them to dump the dollar buy lots of Yuan and then revise the Yuan upwards.

Five years ago I used to refer to China as 'the baby panda', well I think the panda is now in its early teens.

Clean coal and Nuclear power is the next step.

.

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Note, of course, that if the Chinese are forced to revalue their currency upwards, all those cheap DVD players that Brown is relying on to keep 'inflation' low will suddenly not be so cheap anymore.

Our CPI has DVD players being devalued by 20% a year anyway – a little inflation on currencies will never make any of our imported electrical goods go positive as the CPI is fiddled – how much do you think a 500 Mb mp3 player will have been devalued by next year – definitely more than our currency

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Note, of course, that if the Chinese are forced to revalue their currency upwards, all those cheap DVD players that Brown is relying on to keep 'inflation' low will suddenly not be so cheap anymore.

Yes, but dont worry, they will be factored out and replaced with toenail clippings.

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What right has the USA got to force china to change it’s rates ? Are markets not free anymore, is the next step to stop Americans owning gold once again or will the next 9-11 attack be blamed on china.

Sounds like the one where the world must all be democratic (else we will bomb you) and then complaining when the people elect the wrong leaders.

Behind closed door the USA is always pushing policy on the west and many are getting a little bit sick and tired about it all.

America has made it’s own bed so let it lie in it.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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