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Why Does Everyone Let China Cheat

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http://www.bloomberg.com/apps/news?pid=206...&refer=home

"``Widening the band is to further improve the yuan's mechanism, but it doesn't mean the yuan will fluctuate by a lot or appreciate by a large magnitude,'' the People's Bank of China said in a statement in Beijing. The yuan will be allowed to move as much as 0.5 percent either side of a daily fixing rate against the dollar, up from 0.3 percent, the central bank said. "

why do they even have a band, if the currency is undervalued they are gaining an unfair advantage

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why do they even have a band, if the currency is undervalued they are gaining an unfair advantage

There are rumblings (bi-partisan) about taking action in the US Senate.

This addresses the currency issue, but leaves unturned the stone of forced labour.

As the end objective of China's Laogai [T.D.B: prison camp for political prisoners] is to look for the greatest source of revenue, numerous Laogai enterprises have made the move onto international markets through the export of their forced labor goods. Laogai products have time and time again been found to be available in international markets. Despite claims to the contrary by the Chinese government, the CCP is constantly encouraging the exportation of Laogai goods.

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http://www.bloomberg.com/apps/news?pid=206...&refer=home

"``Widening the band is to further improve the yuan's mechanism, but it doesn't mean the yuan will fluctuate by a lot or appreciate by a large magnitude,'' the People's Bank of China said in a statement in Beijing. The yuan will be allowed to move as much as 0.5 percent either side of a daily fixing rate against the dollar, up from 0.3 percent, the central bank said. "

why do they even have a band, if the currency is undervalued they are gaining an unfair advantage

Why do we allow the dollar hegemony that allows a nation bankrupt many times over with no hope of ever repaying its debts to remain the wealthiest in history? In terms of China vs. America I don't think China are necessarily acting in an unfair manner. If they didn't, how far would the US press their (now undeserved) advantage against them?

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China, India, Russia, Brazil.

Every global company and hence every government is falling over backwards to not lose their potential market share.

The number of times this year I've had to drop everything and fly to Moscow is fast becoming a bore. Still with Rusian sales now outstripping all but the top Western European economies who cares? Not my bosses - their bonuses are eye-wateringly huge.

It's a laugh this global boom, isn't it?

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http://www.bloomberg.com/apps/news?pid=206...&refer=home

"``Widening the band is to further improve the yuan's mechanism, but it doesn't mean the yuan will fluctuate by a lot or appreciate by a large magnitude,'' the People's Bank of China said in a statement in Beijing. The yuan will be allowed to move as much as 0.5 percent either side of a daily fixing rate against the dollar, up from 0.3 percent, the central bank said. "

why do they even have a band, if the currency is undervalued they are gaining an unfair advantage

The leaders of western countries let it happen because they are in the pockets

of global corporate interests that want this. Needless to say, being reliant on China for all

our imports puts us in a very economically vulnerable position.

Currencies like the US dollar are likely toast anyway in the medium term,

thanks to the abusive deficit-spending it's been subject to over the years.

With the value manipulation against the Yuan, blame for the final collapse can be directed towards China.

It could even help mobilise the people of western nations into a new conflict in the middle-east,

ultimately involving China.

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Because everyone's winning in the short term. Some get more moeny, the rest get bargain-priced stuff they didn't really need.

And China's big enough to say "this is the only way we'll play - play along, or go away".

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And China's big enough to say "this is the only way we'll play - play along, or go away".

Yep, they can get away with ripping millions off of companies and saying "you don't like it? What you going to do?". They make their bent and corrupt traders "disappear" (ie kill them probably), and then say "nope, that trader wasn't representing us...".

AND they've got a massive army.

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Yep, they can get away with ripping millions off of companies and saying "you don't like it? What you going to do?". They make their bent and corrupt traders "disappear" (ie kill them probably), and then say "nope, that trader wasn't representing us...".

AND they've got a massive army.

One of the reasons that China makes everything is precisely because they DO deliver. Their traders CAN be trusted.

Or do you know different? Do you have examples of "ripping off millions of customers"?

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Why shouldn't they. Plenty of countries tie their currencies to another and China can afford to maintain the rate at the moment. In Europe most countries tied their currency to the Deutschemark at a competitive rate in the ERM (except for the UK) in the build up to the launch of the euro.

However, in economics there is no such thing as a free lunch, and a weak currency is ultimately trying to get that "free lunch". You end up paying for it somewhere down the line, as China will.

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But China has been letting the yuan appreciate against the USD slowly. It's just that the US wants China to do it quicker. At least the Chinese are making economic decisions based on their own interests and are not just kowtowing to the US

Best,

L

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To be honest, the yanks love the USD/RMB peg, they moan in public a bit to keep the underpaid voters happy but in fact are over the moon about it, the US government only represents the big US companies and they now have an ultra cheap workshop which in general operates just one step above slavery , and have been able to delete all the greedy US workers who actualy demand to get a portion of the profit, what more could they want? Was reading yesterday that the mimimum wage was last adjusted about 10 years ago and that still isnt cheap enough for many US employers, hence the government acceptance of millions of illegal immigrants.

I mention the USA however similar sentiment is prevelant here also, we aren't lucky enough to get masses of illegal immigrants but you cant have everything can you? Just wait till we have a kerfuffle with China, we'll all have to walk round with our d*cks hanging out, cause no one will know how to make clothes anymore.

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