Comments on: China won’t help the tanking world economy http://www.crikey.com.au/2009/10/23/china-wont-help-the-tanking-world-economy/ now with extra source Sun, 12 Feb 2012 00:58:05 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: John Bennetts http://www.crikey.com.au/2009/10/23/china-wont-help-the-tanking-world-economy/#comment-42747 John Bennetts Sat, 24 Oct 2009 01:50:26 +0000 http://www.crikey.com.au/2009/10/23/china-wont-help-the-tanking-world-economy/#comment-42747 Scott refers to a devalued renminbi/yuan. Does he mean wrt $AUS? In which case, I understand. What I am waiting for is a revaluation, ie upwards, against the $US. That is presumably both unavoidable and a terrifying prospect for the Chinese, who would then crystallise their losses on trillions of greenbacks held by them in cash and debt. The rise in value of yuan against $US is an essential outcome of the GFC, though it will not do anything to help the chinese to manage inflation at home. They have a giant problem staring them in the face and have spent the last year avoiding doing anything about it. Scott refers to a devalued renminbi/yuan.

Does he mean wrt $AUS? In which case, I understand.

What I am waiting for is a revaluation, ie upwards, against the $US. That is presumably both unavoidable and a terrifying prospect for the Chinese, who would then crystallise their losses on trillions of greenbacks held by them in cash and debt.

The rise in value of yuan against $US is an essential outcome of the GFC, though it will not do anything to help the chinese to manage inflation at home. They have a giant problem staring them in the face and have spent the last year avoiding doing anything about it.

]]> By: Scott http://www.crikey.com.au/2009/10/23/china-wont-help-the-tanking-world-economy/#comment-42615 Scott Fri, 23 Oct 2009 04:36:20 +0000 http://www.crikey.com.au/2009/10/23/china-wont-help-the-tanking-world-economy/#comment-42615 That investment growth is good news though...lays the groundwork for further economic growth over the long term. And the fact that imports haven't declined that much, even when the Renminbi (isn't Yuan just "dollar" in chinese?) has devalued is surely good news for foreign countries exporting their goods to china. That investment growth is good news though…lays the groundwork for further economic growth over the long term. And the fact that imports haven’t declined that much, even when the Renminbi (isn’t Yuan just “dollar” in chinese?) has devalued is surely good news for foreign countries exporting their goods to china.

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