The Chinese Really Think We're Stupid; Maybe We Are
As you may be aware, there's currently pressure being put on the Communist Chinese Government to cause it's currency to be valued like every other major currency, based upon economic factors within China, factors dealing with its politics, trade, etc. etc.
At the moment, the Chinese Yuan has its value pegged to the US dollar, at a rate of 8.28 Yuan to one US dollar. The Yuan will not fluctuate...this is a hard exchange rate that will not change.
The effect is that US made goods are expensive in China, while Chinese goods are cheap in the US. Because of the valuation of the Yuan vs. the Dollar, unchanged at 8.28:1, this situation will not change in the near future. Needless to say, as the Euro is valued higher than the US Dollar, European products are even more expensive within China, and Chinese products are even cheaper in Europe.
The Chinese, of course, say this is only fair. They get to set their own currency valuation policy as a sovereign state.
The arguments raised by the Communist Chinese Govermnet are absurd.
They claim that they're being subjected to a "double standard" because the US and the EU spouse "free trade" and by forcing the Yuan to be valued like any other currency this is somehow anti-free trade. Does anyone buy this other than the Communist Chinese Government?
They claim that the US should get its house in order before blaming others for its problems, citing that the US is upset over the trade deficit with China. Of course, anyone with half a brain can point out that it's the currency policy of the Communist Chinese Government that is a major factor in the trade deficit with China. US made products are expensive in China, while Chinese made products are cheap in the US.
Am I missing something?
Sadly, many Chinese, especially Chinese in power, are all about face. If the Communist Chinese Goverment were to give in and fairly value their currency, it would lose face. This, in conjunction to the extreme trade advantage they enjoy due to their currency valuation, is even more reason to resist a fair valuation of their currency.
Moreover, as a totalitarian state, Communist China is not accustomed to competition or criticism. Should anyone within China critisize what's going on, they can be imprisoned or otherwise done away with. Being critisized by the EU and the US, and being told to play fair or else, is a position they are not at all comfortable with.
The Communist Chinese Government is not at all unlike a child in their "Terrible Two's" - they've had their way up to now, and now it's time to understand that everyone else doesn't simply exist for their enjoyment.
What's even sadder, is that no one in the US or the EU will stand up to the the Communist Chinese leadership. The US has big words, as does the EU. In the end, the Communist Chinese will say a little here, do a little there, and NOTHING will change for at least another ten years.
In the US, this issue is barely making any ripples, in spite of the fact that the ramifications are enourmous. The media, as usual, is doing a great job of covering up important issues that affect us all while focusing us on crap:
Let's see what the headlines are (snapshot taken early AM on 5/18/05):
FoxNews: Rating Worthless
Debate of a Judicial Nominee in the Senate - somewhat affects us all; Assassination in Bagdad - has little to no effect on us other than making us upset; "person of interest" sought in the kidnapping of two children - has no effect on us, only upon people who are close to those kids.
CNN: Rating Completely Worthless
Starwars "Revenge of the Sith" opens tonight.
ABC News: Worthless
Predicting the next volcano eruption; a malfunctioned grenade thrown in the general vicinity of George Bushy; "Person of Interest" as above; fight over judicial nominees
MSNBC: Worthless
Judicial nominee fight; Star Wars; CBS drops 60 minutes; Toyota Recall.
Worthless is better than completely worthless, and was given only becuase the judicial nominees have some effect upon us all. All other headline issues are noise, having no effect on us all.
The media is ignoring real issues because
a) they have an agenda; or
b) they have to sell product and we're all just getting what we ask for.
According to Occams Razor, it has to be b.
Maybe the media isn't as controlled by the left as I originally thought. It's more controlled by our shallowness as a society.
At the moment, the Chinese Yuan has its value pegged to the US dollar, at a rate of 8.28 Yuan to one US dollar. The Yuan will not fluctuate...this is a hard exchange rate that will not change.
The effect is that US made goods are expensive in China, while Chinese goods are cheap in the US. Because of the valuation of the Yuan vs. the Dollar, unchanged at 8.28:1, this situation will not change in the near future. Needless to say, as the Euro is valued higher than the US Dollar, European products are even more expensive within China, and Chinese products are even cheaper in Europe.
The Chinese, of course, say this is only fair. They get to set their own currency valuation policy as a sovereign state.
The arguments raised by the Communist Chinese Govermnet are absurd.
They claim that they're being subjected to a "double standard" because the US and the EU spouse "free trade" and by forcing the Yuan to be valued like any other currency this is somehow anti-free trade. Does anyone buy this other than the Communist Chinese Government?
They claim that the US should get its house in order before blaming others for its problems, citing that the US is upset over the trade deficit with China. Of course, anyone with half a brain can point out that it's the currency policy of the Communist Chinese Government that is a major factor in the trade deficit with China. US made products are expensive in China, while Chinese made products are cheap in the US.
Am I missing something?
Sadly, many Chinese, especially Chinese in power, are all about face. If the Communist Chinese Goverment were to give in and fairly value their currency, it would lose face. This, in conjunction to the extreme trade advantage they enjoy due to their currency valuation, is even more reason to resist a fair valuation of their currency.
Moreover, as a totalitarian state, Communist China is not accustomed to competition or criticism. Should anyone within China critisize what's going on, they can be imprisoned or otherwise done away with. Being critisized by the EU and the US, and being told to play fair or else, is a position they are not at all comfortable with.
The Communist Chinese Government is not at all unlike a child in their "Terrible Two's" - they've had their way up to now, and now it's time to understand that everyone else doesn't simply exist for their enjoyment.
What's even sadder, is that no one in the US or the EU will stand up to the the Communist Chinese leadership. The US has big words, as does the EU. In the end, the Communist Chinese will say a little here, do a little there, and NOTHING will change for at least another ten years.
In the US, this issue is barely making any ripples, in spite of the fact that the ramifications are enourmous. The media, as usual, is doing a great job of covering up important issues that affect us all while focusing us on crap:
Let's see what the headlines are (snapshot taken early AM on 5/18/05):
FoxNews: Rating Worthless
Debate of a Judicial Nominee in the Senate - somewhat affects us all; Assassination in Bagdad - has little to no effect on us other than making us upset; "person of interest" sought in the kidnapping of two children - has no effect on us, only upon people who are close to those kids.
CNN: Rating Completely Worthless
Starwars "Revenge of the Sith" opens tonight.
ABC News: Worthless
Predicting the next volcano eruption; a malfunctioned grenade thrown in the general vicinity of George Bushy; "Person of Interest" as above; fight over judicial nominees
MSNBC: Worthless
Judicial nominee fight; Star Wars; CBS drops 60 minutes; Toyota Recall.
Worthless is better than completely worthless, and was given only becuase the judicial nominees have some effect upon us all. All other headline issues are noise, having no effect on us all.
The media is ignoring real issues because
a) they have an agenda; or
b) they have to sell product and we're all just getting what we ask for.
According to Occams Razor, it has to be b.
Maybe the media isn't as controlled by the left as I originally thought. It's more controlled by our shallowness as a society.
posted by cookies at 8:36 AM
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