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Solving The Chimerica Trade Problem

Discussion in 'The Economy' started by Chris C, 16th Oct, 2010.

  1. Chris C

    Chris C Well-Known Member

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  2. fundies

    fundies Member

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    This may or may not work. But what's in it for all the other nations pissed off with China's obsessive desire to run the world ? Not much I'd imagine.
     
  3. Chris C

    Chris C Well-Known Member

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    the theory is sound so makes sense in theory though of course wouldn't he practical in reality.

    As for the other nations, the same principle can be applied to those with which China has a trade surplus. And once again doing this makes for a much more secure investment for China and results in infrastructure investments for the economies with which they invest in.

    I'm sure this would have some appeal to Chinese authorities in comparison to funding deficits of the nations that they have a trade surplus with most of which seem to be more interested in printing money to pay for their debts rather than on of them.

    This is no doubt one of the reasons why China has being tending to divest more of their profits into assets other than U.S. Treasuries.

    As for your comment about China's obsessive desire to run the world that is a bit hypocritical given that all China is really doing is being successful in the competitive environment of capitalism. It's the western world that insists on framing China as being evil for being better at capitalism than them. So don't buy into their rhetoric that China's evil it's just an unfortunate reality of capitalism that the money flows to those that do the best business.

    And before anyone suggests that China is a currency manipulator or suppressing the yuan, I invite you to step back and look at which countries are actively printing money to debase their currencies. And I think once again it is the Western world being hypocritical and looking for someone to blame for the mistakes governments have made.