News: London bombs and Chinese currency

[rsbriggs]

Some breaking news, and I can't post on the front page at the moment.

There have either been attempts to detonate more bombs in London, or there have been actual explosions....

China unpegged its currency against the US Dollar, and it's surging upwards. Look for BIG trouble possible with the US economy in a few months. Those cheap, inexpensive Chinese products that have displaced all the domestic products will soon not be inexpensive any more. I hear rumblings about across-the-board price increases of 20+% possible over the next few months.

[FoBoT]

i thought the US was urging China to do this. one news item indicates Greenspan thinks this is a positive step.

are you saying you disagree with the conventional wisdom on this?

http://today.reuters.com/business/newsarticle.aspx?type=tnBusinessNews&storyID=nN21344209&imageid=&cap=


Beijing on Thursday abandoned a peg that kept the yuan at about 8.28 to the dollar and moved to a system that links the yuan to a basket of currencies, effectively raising the currency's value by 2.1 percent.

"I think they've been cautious and I think admirably so," Greenspan said. "But I look at it as a first step in a number of further adjustments as they invariably increase their participation in the world trading markets."


China's currency peg had faced increasing fire in the U.S. Congress, with many lawmakers calling for punitive tariffs on cheaply priced Chinese imports unless the Asian trade giant revalued its currency.

U.S. manufacturers argued that China's currency was so undervalued that it amounted to an unfair trade subsidy that permitted a flood of cheap Chinese-made goods to bankrupt U.S. companies and cost tens of thousands of jobs.

so, my understanding has been that many in US have wanted China to act on this issue and now they have.

[gopher_yarrowzoo]

Yeah Latest on London shit is they ****ed up big style, the bombs didn't go boom and they tried to flee the scene, think the police are on to 'em..

[jasong]

Originally posted by rsbriggs
China unpegged its currency against the US Dollar, and it's surging upwards. Look for BIG trouble possible with the US economy in a few months. Those cheap, inexpensive Chinese products that have displaced all the domestic products will soon not be inexpensive any more. I hear rumblings about across-the-board price increases of 20+% possible over the next few months.
You may be surprised at the long term effects of this. Common sense is definitely not common and conventional wisdom is usually wrong, believe it or not. If you don't believe me, try doing research on the Bible verses covering,"equal weights and measures" and comparing that to most money systems of today.

[Scoofy12]

aside from that, i think 20% is a little high for any changes. the yuan only appreciated by about 2% IIRC