Comments on: Krugman is wrong: Why China won’t revalue

By: jan z. volens

jan z. volens — Sat, 02 Jan 2010 02:17:22 +0000

Happy New Year 2010: Today, Jan. 1st, Krugman is again whining in the NYT about the valuation of China’s currency! The Natos are mumbling too - but what is the rest of the world thinking - the other 180+ nations ? Perhaps the whole hysteria about China’s currency is just an affliction of the old “white colonials”! (Rember the old U.S.American outcry 1950: “Who lost China?”. Hints exist that the BRICs talked about dumping the U.S. dollar… Brazil had the world’s highest stock valuation increase in 2009 - 125 %, also a 25% increase of the “real” against the U.S. Dollar. The academic economists probably will disagree - but as a “man on the street” - I remember - in previous decades, Brazil (and much of Latin America) suffered several severe currency collapses - while its own economists and politicians took their cues (or “instructions”) from the Chicago Boys and the U.S. Fed. Now after eight years of the presidency of an old leftist labor union organizer with a grade school education, Ignacio Lula da Silva, Brazil practically avoided the U.S.-made “global crisis”, and is being watched by the those 180+ nations as an example of “doing it your way” - not the U.S.American way. Now just wait for the cry “who lost (influence over) Brazil ?”…

By: jan z. volens

jan z. volens — Sun, 22 Nov 2009 07:34:02 +0000

Correction of preceding comment. Should read: …would simply move to VIETNAM without producing more jobs in the U.S. …

By: jan z. volens

jan z. volens — Sun, 22 Nov 2009 07:24:00 +0000

“Krugmand is wrong: China won’t revalue” - today , Nov. 22. China Daily: “Push for stronger yuan does no good”. Quotes Shawn Rein of China Market Research. “Better for American business to maintain current yuan exchange rate until worldwide economy is on firmer footing. Renminbi appreciation would lower American consumer purchasing power at time of high unemployment. Revaluation would now lead to unemployment in China which in turn would reduce American exports to China, while manufacturers would simply move to China without producing more job in U.S. Better restructure U.S., pay down debt to keep U.S. treasuries attractive”. Jeremy Warner of British Daily Telegraph is quoted with similar opinion. ( Article from Xinhua). - Interesting item: China’s Ministry of Education offers a list of 15,000 approved schools in 33 countries. Currently 80,000 Chinese students in U.S. Since 1978, 1.3 million Chinese studied abroad, until now 350,000 “Sea turtles” (Chinese affectionate term for returnees) returned to China.

By: jan z. volens

jan z. volens — Thu, 29 Oct 2009 03:24:05 +0000

When Prof. Krugman uses terms as “rest of the world” and “world economy” - could one considers that he shares the same view from the “readview mirror” of most U.S. Americans? For example the “crisis” originated by “Wild Wallstreet Greed” and its longterm effects will concern U.S.Americans .It had put a shock into the gullible Continental Europeans. But the “rest of the world” may already be on a more promising path with less delayed effects from the “crisis”. Thus increasingly, the “rest of the world” may become less interested in what is “desirable” by U.S. Americans and not overly concerned what U.S. Congress “certifies”… Whatever the exchange rate may be - the U.S. public will suffer a declining standard and “bear the cost”. The Chinese probably seek a “soft landing” - by buying just enough U.S. treasuries to influence a benign attidute in Washington -and by using U.S. dollar reserves for investments in the “rest of the world”. Both China and Brazil worry about “hot money” flowing into their economies - and “hot money” probably is turning to many other more modest players in the approaching “multipolar world economy”.The interesting question: How will the U.S. public tolerate the looming gradual descend into a reduced level…