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| China-Japan-Koreas |
| China steady on the peg |
| 2004-12-01 |
| Posted by:tipper |
| #4 The Yuan is currently grossly undervalued because of the peg. They'd have to do something really stupid for it to drop if they let it float. Invading Taiwan might be enough. Threatening to nuke Hong Kong probably would, but even that's not certain. |
| Posted by: Dishman 2004-12-01 8:52:16 PM |
| #3 DPA's right. Its full of marxist econobabble. Nonetheless it contains an interesting core truth, which is the world trusts the USD far more than it trusts anything else. To take China as an example (as the article does). Nobody forced the Chinese to link the Yuan to the USD. They could have linked it to anything - a basket of currencies, gold, oil, a basket of commodities, even the price of rice. China's problem is that removing the dollar peg would make their currency less trusted and hence worth less. |
| Posted by: phil_b 2004-12-01 3:53:48 PM |
| #2 from the deadly financial virus of dollar hegemony That's as far as I got. The technobabble meter is, like Spinal Tap's amps, pegged at 11. |
| Posted by: Raj 2004-12-01 10:49:38 AM |
| #1 Did you actually read that article? The guy that wrote it is a communist and the article is filled with technobabble... seriously most of what he says is nonsense which he hides behind terms of the art to sound sophisticated. |
| Posted by: Damn_Proud_American 2004-12-01 9:51:52 AM |