China increases the value of its currency 400 percent.

[barry12345]

Reported in the media yesterday but not confirmed by me from another source. Implications if true could prove interesting. Was due to occur sometime.

This to me is a quantum leap. Timing I found interesting.

[INSIDIOUS]

Originally Posted by barry12345

Reported in the media yesterday but not confirmed by me from another source. Implications if true could prove interesting. Was due to occur sometime.

This to me is a quantum leap. Timing I found interesting.

How would they accomplish that?

[Autoputzer]

Originally Posted by INSIDIOUS

How would they accomplish that?

They're communists. The government controls everything in China, so they can do whatever they want. That's how communism works.

[ah-kay]

Originally Posted by Autoputzer

They're communists. The government controls everything in China, so they can do whatever they want. That's how communism works.

Foreign exchange or currency does not work like that. currency value is based on supply and demand, not government. No wonder you are the 99%.

[davidmash]

China is communist? Since when?

[barry12345]

Lot of potential confusion. China has kept the value of their currency low on purpose for a long time. It has helped them expand into many markets. As I mentioned this increase was expected at some point.

It may or may not mean a lot to us. It might take some pressure off their export demand. They moved up a long ways on the low value of their currency. I found the markup over cost was never really passed along to consumers in north America by and large. A huge margin was just enabled for retailers.

I just view this if true as an increase in the wealth transfer to China. The standard of living has been steadily increasing in China. I do not know if this has been the case in north America.

China has possibly allowed us to become a very materalistic society was another guess by me. Plus dependent on low cost production. I probably mentioned before, It is estimated China has some involvement or other with 95 percent of our consumer products.

Like it or lump it does not matter. Their form of government can and does engage in longer term planning. North American governments do not do nearly as well in this area. If fact we very much are stuck with more or less fire fighting type events in the economy. Take the rapid pace of automation in their society. The financial benefits are to be shared by the population. We attempt a high level of automation the value added component goes to the few.

I am not pro China by the way. I still have enjoyed buying direct from there over the years. What is left of that will just be a little more expensive now.

Warren Buffet has said over the years. Not to sell America short. Yet he is tracking huge profits out of China now. China to me is a communist country with a semi free enterprise system. I do not think the terms of moving an industry to China where ever explained to the masses.

They Chinese probably have managed to work out a combination that works. Personally I expect the north American propaganda has done a lot of industrial damage to us.

North America to me is very much becoming a consumer based economy. Stimulating buying with very low interest rates I do not believe was a great ideal. Inflation is to me becoming a problem in Canada currently. They seem to not be able to raise interest rates to counter it. Huge amounts of poorly secured loans are out there. They do not want to risk a financial implosion. Canada got into this mess with poor plannng.

Reciently I replaced my computer tower and keyboard. Plus added a really decent speaker system to it as well. Cost all in was 217.00 Canadian . Or 150-175 American. China enables this. It really is value for money in my opinion. As are things like flat screen televisions. Assembled in America with Chinese parts. Is to me also becoming an issue. Starting to be far too common.

As time moves along I have been somewhat impressed our system holds up as well as it has. At the same time all too aware this is not true for all citizens.

Somewhat the same in America. Just not as damaging. I suspect Increasing the value of their Chinese currency should help them service their debt load,

[barry12345]

The Chinese increase was claimed for their yaun. The Chinese government has an official crypto currency apparently. I just found out. The article I saw somewhere was misleading.

It was not their official old school currency that went up. It was there crypto. Although that is going to happen sometime. Could be anytime these days I suppose. They have kept the value off their currency low on purpose is well known. Drives exports. Made them today the main manufacturer in the world.

When it starts it probably will be a slow and steady increase of their real currency. They could also use it in a punative action as well I suppose. I am not into crypto. Yet there is no denying people have made a dollar with it.

[cornemuse]

Originally Posted by davidmash

China is communist? Since when?

Well, communist in name, anyways, , , ,

[fonzi]

Wouldn’t this be all over the news if true? Barry12345 reports no sources but writes long posts (I didn’t read).

[davidmash]

Originally Posted by cornemuse

Well, communist in name, anyways, , , ,

So? The question is since when was China communist?

[vwnate1]

I vaguely recall it was in 1949 but High School was so long ago .

[davidmash]

China has been a authoritarian dictatorship since Mao took over. Mao was no more a communist than the GDR was democratic.

[barry12345]

Whatever system China has. Seems to be steadily increasing the well being of their population. Is it sustainable is unknown.

Their strength to me is they can engage longer range planning with their political system and stay on track. We seem at least superficially to have no real plans. Not the best way to fly perhaps.

Of note to me is their industries are semi controlled. They would not be allowed to do something that is bad for China. The concept that the North American industrial base ever had any responsibility. Towards other than the corporations well being. Has in my opinion caused serious damage. Reducing the north American countries to primarily a consumer driven economy.

It might stagger many people if they knew what China has purchased basically in north American old companies. Many enterprises like IBM are 100 percent owned by the Chinese. I have been trying to decide if General Motors in north America is just a subsiduary of a larger car producer in China. The Chinese own quite a chunk of it.

By official decree or otherwise. The media do not seem to cover serious changes. As far as I am aware of. Never their conditions China engages when an industry from north America moves there.

The list is extensive and still growing. Media keep the sheep informed? Or do they just prop up illusions?

[chilcutt]

https://youtu.be/E7Jfrzkmzyc