(Chinese Yuan) A Currency Afloat (for All of 20 Minutes)

[UpInArms]

http://www.nytimes.com/2005/04/30/business/worldbusiness/30yuan.html

(free registration or try www.bugmenot.com)

HONG KONG, April 29 - The Bush administration has been pressing the Chinese government for years to allow its currency, which is pegged to the dollar, to trade more freely. It got its wish on Friday - but only for 20 minutes.

A freely trading Chinese yuan would probably rise in value against the dollar, making Chinese exports to the United States more costly. That, in turn, would give relief to American manufacturers battered by low-priced Chinese goods as the American trade deficit has been growing faster with China than with any other country. It would also be a political victory for the Bush administration.

<snip>

The yuan climbed until it took 8.270 of them to buy a dollar instead of the usual 8.276. That difference, of only six thousandths of a yuan, might not seem like much of a change.

But it came on the eve of a weeklong holiday in China and at a time of intense speculation that a Chinese revaluation of the currency, which has been fixed by Beijing against the dollar for years, might be imminent. The brief appreciation, a hint of further rises if the yuan were to float, was enough to roil currency markets around the world.

...more...

[xchrom]

1. china will do what's good for china.

it's a narrow view within those borders.

the corporate powers outside china and inside china want things to remain cheap.

that means that bushco cronies -- corporatists -- also want china's yuan remaining pegged to the dollar.

for now -- it seems to me -- it's much ado about nothing.
there's no real intention by our corporate lords and masters to want the yuan to go it alone -- and certainly no real interest inside china.

[teryang]

2. When prices go up at Walmart

The ruling clique at home will no longer be able to sell their program of economic lies.

[leveymg]

4. One of three legs of their "program of economic lies" is already gone:

1)Cheap gas, 2) easy credit, and 3) Walmart.

2) and 3) on the way. Bye-bye BushCo and Repugs!

:kick: :dunce:

[Vitruvius]

3. China's sending an obvious signal to Bu$h to stop

running those big budget deficits & trade deficits. Or else.

Will Bu$h listen? No. But China has given him -- and us -- fair warning.

[tanyev]

5. What American manufacturers?

Not many left. Talk about shutting the barn door after the cow got out.

[Igel]

6. I don't want the dollar to drop between now and next Friday.

I'd actually like a very sharp spike in its value on Thursday and Friday, when I'm going to be buying a bunch of zloty. I'm sorry, "new zloty."