Revaluing the yuan helps no one

last SG · 2005-12-16T09:36:10+00:00

No, that's naive... It will move to the next low labour cost country likely Vietnam. Our govt has infact lay basic foundation there. China has also a huge c...

Salman SG

All industries need labour. If labour is really so cheap in China that they can sweep all labour intensive industries, why bother to peg the yuan at all?
You wanna play dumb like sgdiehard and says the yuan isn't pegged?

Salman SG

Do you know the difference between revalauation and undervaluation?
I think you better re-read the thread again.

Gazelle SG

I dont think you know Yuan is Peg against the dollar either. or else you wont be saying that China gov DEvalued the Yuan against the dollar.

Salman SG

Oh I see, now you pretend that the yuan isn't pegged to the USD. Good for you.

Salman SG

It is clear that Boy in Blue does not know what he is talking about.
Yuan to dollar peg does not mean it is not devalued.
The whole point is, the Yuan is pegged in a devalued position to the USD.

Why is it that people who don't know basic economics want to discuss on monetary policy?

I suggest all of you go back to your A level econs text book and reread it becfore your next post.

sgdiehard SG

don't answer a question with another question, logical or not?

If you don't have anything concrete to say, just go play with yourself. I have no time.

sgdiehard SG

You are the one who do not know basic economics!!

why do you think yuan is devalued and how by how much is it devalued??

answering a question with another question surely will not pass PSLE, have you done that???

Gazelle SG

Its clear that everybody here thinks that you have limited knowledge of what you are saying, plus you inability to explain what exactly you are talking about.

A level econs? I think you have to read more than that. What we are discussing here is about US foreign policy, its about China being the next super power, its about OIL and Energy in Middle East, Africa, Russia, its about North Korea and Taiwan.

FYI, YUAN is no longer peg aagainst the USD since mid of this year. It is now peg against basket of currencies.

Salman SG

Ah, so yuan was indeed pegged to USD but now pegged to an basket of currencies that can we assume includes USD?

Good for you. You get getting smarter. Unfortunately, some people don't even know that.

sgdiehard SG

Only you do not know. It is ok if you don't know others are smart, but do you know that you are not so smart?? Laughing

Gazelle SG

I am just trying make you look "smart" thats all. Hope you know what I meant.

Salman SG

You just made yourself and the rest of the pro china gang look stupid.

Thanks

Gazelle SG

nobody is pro china here, we are just discussing the facts about US and China's foreign policy. With regards to Yuan, you can cry till the cows come how, the job that leave Singapore will never come back for a simple reason.

You want to do business in China? You better invest in China. This is the simple principle that is applied to all countries around the world.

boy in blues SG

in which post did i say "dollar peg means currency is not devalued"?

Salman SG

So you do accept that the peg can be a devalued one. Good for you, you are inching towards education.

Gazelle SG

I find you too Naïve to be true, what exactly are you?

sgdiehard SG

resort to name calling, you are pathetic.

Salman SG

My stand is clear. I'm neutral.
Anyone who wants to compete, let them compete on equal terms. Export subsidy through undervaluation of the Yuan is an unfair practice that will adversely affect trading partners. The net result is, this region has lost millions of jobs and billions of dollars of investments.

Gazelle SG

1) why should a company remain in Singapore when 90% of their products are heading for China? WHY? Because of YUAN?

2) million of jobs lost due to china? where did you get this statistic? which region you talking about?

3) FDI moving into China is not due to Yuan, but rather the supply of cheap labour and the massive market potential. If you think otherwise, please support with facts.

4) Is there such thing as a fair competition in global trade?

Salman SG

And the reason why labour is so cheap is partly due to devalued Yuan as well.
In other words, there wouldn't be so many jobs and investments going there had the Yuan not been devalued. Simple logic.

If the massive labour is good eneough to attract jobs and investments, why bother to devalue in the first place?

What if every country starts doing the same thing like China? would that be good?

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