Comments on: China and the Revaluation of the Yuan http://blog.robertsalomon.com/2010/02/26/china-and-revaluation-of-the-yuan/ Mon, 06 Feb 2012 15:52:29 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Loyd Eskildson http://blog.robertsalomon.com/2010/02/26/china-and-revaluation-of-the-yuan/comment-page-1/#comment-2662 Loyd Eskildson Wed, 20 Oct 2010 15:15:27 +0000 http://blog.robertsalomon.com/?p=1710#comment-2662 Raising the yuan's value will simply move production to other nations, and force the U.S. to absorb the costs of moving production as well as the higher costs at the new location. On the other hand, it will at least temporarily impede further loss of U.S. jobs. Raising the yuan’s value will simply move production to other nations, and force the U.S. to absorb the costs of moving production as well as the higher costs at the new location. On the other hand, it will at least temporarily impede further loss of U.S. jobs.

]]> By: foreverdim http://blog.robertsalomon.com/2010/02/26/china-and-revaluation-of-the-yuan/comment-page-1/#comment-1798 foreverdim Sun, 28 Feb 2010 15:09:59 +0000 http://blog.robertsalomon.com/?p=1710#comment-1798 i'm english. have lived in china 5 years and own factories that produce for the local and export market... so lets say the rmb appreciates 10% against the usd...chinese exports become more ecpensive...manufacturing moves where? america..no...somewhere else in se asia. america gains no jobs, gains no cost saving on its imports. china loses jobs, needs to provide stimulus to its economy...where's it get the cash for that? it sells someof the us debt it owns and now it gets 10% less in rmb for thst debt. who gains from this? neither america or china want major shifts in exchange rates i'm sure, too destabilising for both. where does the idea that the rmb is 40% undervalued come from? the cost difference between us and chinese produced goods? when chinese workers earn american wages then maybe. but for now maybe a 5% shift reflects reality, when all this talk of manipulating currency is washing about why does no one ever mention hong kong...under the previous british and now the "one country two systems" regime its been pegged and 7.8 and we never hear a whimper about that..why? i’m english. have lived in china 5 years and own factories that produce for the local and export market…
so lets say the rmb appreciates 10% against the usd…chinese exports become more ecpensive…manufacturing moves where? america..no…somewhere else in se asia. america gains no jobs, gains no cost saving on its imports. china loses jobs, needs to provide stimulus to its economy…where’s it get the cash for that? it sells someof the us debt it owns and now it gets 10% less in rmb for thst debt. who gains from this?
neither america or china want major shifts in exchange rates i’m sure, too destabilising for both.
where does the idea that the rmb is 40% undervalued come from? the cost difference between us and chinese produced goods? when chinese workers earn american wages then maybe. but for now maybe a 5% shift reflects reality,
when all this talk of manipulating currency is washing about why does no one ever mention hong kong…under the previous british and now the “one country two systems” regime its been pegged and 7.8 and we never hear a whimper about that..why?

]]> By: John http://blog.robertsalomon.com/2010/02/26/china-and-revaluation-of-the-yuan/comment-page-1/#comment-1793 John Fri, 26 Feb 2010 21:43:44 +0000 http://blog.robertsalomon.com/?p=1710#comment-1793 Sorry if this is a simplistic interpretation of your post, but in short I believe you're saying the corresponding impact in the U.S. of a fall in China's exports, as a result of devaluation of the renminbi, would be a loss of employment for people at Walmart? Isn't that kind of like being threatened with an unloaded shotgun? Sorry if this is a simplistic interpretation of your post, but in short I believe you’re saying the corresponding impact in the U.S. of a fall in China’s exports, as a result of devaluation of the renminbi, would be a loss of employment for people at Walmart? Isn’t that kind of like being threatened with an unloaded shotgun?

]]> By: Mitch http://blog.robertsalomon.com/2010/02/26/china-and-revaluation-of-the-yuan/comment-page-1/#comment-1792 Mitch Fri, 26 Feb 2010 21:20:43 +0000 http://blog.robertsalomon.com/?p=1710#comment-1792 Ah, I see, thanks. I wasn't aware that anyone was seriously arguing that China should allow the rmb to float without some kind of gradual transition. Ah, I see, thanks. I wasn’t aware that anyone was seriously arguing that China should allow the rmb to float without some kind of gradual transition.

]]> By: Robert Salomon http://blog.robertsalomon.com/2010/02/26/china-and-revaluation-of-the-yuan/comment-page-1/#comment-1791 Robert Salomon Fri, 26 Feb 2010 20:21:18 +0000 http://blog.robertsalomon.com/?p=1710#comment-1791 I agree Mitch. A gradual revaluation is probably the best outcome for the global economy. I definitely do not think China would revaluate suddenly (e.g., by allowing the yuan to float), but there are those who argue that the yuan is undervalued by 40% (or more) and that China should allow the yuan to float. I am simply suggesting that that would be a mistake. I think most know that... I agree Mitch. A gradual revaluation is probably the best outcome for the global economy. I definitely do not think China would revaluate suddenly (e.g., by allowing the yuan to float), but there are those who argue that the yuan is undervalued by 40% (or more) and that China should allow the yuan to float. I am simply suggesting that that would be a mistake. I think most know that…

]]> By: Mitch http://blog.robertsalomon.com/2010/02/26/china-and-revaluation-of-the-yuan/comment-page-1/#comment-1790 Mitch Fri, 26 Feb 2010 20:11:17 +0000 http://blog.robertsalomon.com/?p=1710#comment-1790 <blockquote>A sudden revaluation to competitive levels could come with socially and economically undesirable near-term adjustments.</blockquote> China can make it as gradual as they like. They undoubtedly see, as you do, the negative consequences of a sudden revaluation. So why would you think that they'd do it suddenly?

A sudden revaluation to competitive levels could come with socially and economically undesirable near-term adjustments.

China can make it as gradual as they like. They undoubtedly see, as you do, the negative consequences of a sudden revaluation. So why would you think that they’d do it suddenly?

]]>