Comments on: are YOU afraid of China? http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/ news and views from uc berkeley Tue, 06 Jan 2009 10:36:06 +0000 http://wordpress.org/?v=2.3.2 By: Gabriel Corrie http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3591 Gabriel Corrie Fri, 03 Mar 2006 17:29:47 +0000 http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3591 Also, the fact that they have yet to fully integrate into the WTO and if they did would have problems concerning intellectual property rights on electronics and drugs, this should slow down their economy substantially. But, I also think that Chinese growth will be good for the region and the global economy. Chinese growth will definitely force improvements between Japan and China. Diplomatic and economic. Other problems facing China down the road will be stabilization of population growth, education, energy problems and solutions, more asian free trade agreements, labor markets, and nuclear weapons agreements. More importantly, they would like to rival the us. That won't happen. They'll make a good run of it though. Plus opening more markets will lead to greater exchanges of information, etc... which will hopefully help to further liberalize the region and help destroy state owned businesses. Also, the fact that they have yet to fully integrate into the WTO and if they did would have problems concerning intellectual property rights on electronics and drugs, this should slow down their economy substantially. But, I also think that Chinese growth will be good for the region and the global economy. Chinese growth will definitely force improvements between Japan and China. Diplomatic and economic. Other problems facing China down the road will be stabilization of population growth, education, energy problems and solutions, more asian free trade agreements, labor markets, and nuclear weapons agreements. More importantly, they would like to rival the us. That won’t happen. They’ll make a good run of it though. Plus opening more markets will lead to greater exchanges of information, etc… which will hopefully help to further liberalize the region and help destroy state owned businesses.

]]> By: Michael http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3550 Michael Thu, 02 Mar 2006 19:19:30 +0000 http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3550 "I was reading the blog of Berkeley economics professor (DeLong) and he’s saying that the dollar could crash any day cos the Chinese might lose faith in the Bush Adminisration (and stop buying Treasuries). In which case, we’re all doomed. A pretty scary scenario." The dollar won't crash. Too many countries use it as their own security. If the dollar did drop in value, the U.S. economy would do better, since American exports become cheaper and imports become more expensive. This is why the Chinese government have been keep their currency rated low verses the dollar. “I was reading the blog of Berkeley economics professor (DeLong) and he’s saying that the dollar could crash any day cos the Chinese might lose faith in the Bush Adminisration (and stop buying Treasuries). In which case, we’re all doomed. A pretty scary scenario.”

The dollar won’t crash. Too many countries use it as their own security. If the dollar did drop in value, the U.S. economy would do better, since American exports become cheaper and imports become more expensive. This is why the Chinese government have been keep their currency rated low verses the dollar.

]]> By: Mickey Klein http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3531 Mickey Klein Thu, 02 Mar 2006 04:26:42 +0000 http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3531 Thats true, it only lends a likelyhood that the Chinese will keep investing, not a guarantee. That is, however, all that one can say about any investment. Thats true, it only lends a likelyhood that the Chinese will keep investing, not a guarantee. That is, however, all that one can say about any investment.

]]> By: gary http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3530 gary Thu, 02 Mar 2006 04:16:19 +0000 http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3530 Mickey, what you're saying is true, but somewhat tautological. Just because Im giving you money at "increasing rates" surely doesnt mean I think you're a good investment - you could simply be demanding it from me. Of course money is flowing it at increasing rates, but thats tantamount to saying nothing. But its not necessarily due to a more propitious investment environment, as you're suggesting. Its to prevent a dollar depreciation and, correspondingly, a yuan appreciation, so as to foster growth; thats the policy of the Chinese monetary authorities. Thing is, they can easily diversify into euros, say. That notwithstanding, its unlikely they will partly due to the attendant fall in the value of their foreign reserves. Mickey, what you’re saying is true, but somewhat tautological. Just because Im giving you money at “increasing rates” surely doesnt mean I think you’re a good investment - you could simply be demanding it from me. Of course money is flowing it at increasing rates, but thats tantamount to saying nothing.
But its not necessarily due to a more propitious investment environment, as you’re suggesting. Its to prevent a dollar depreciation and, correspondingly, a yuan appreciation, so as to foster growth; thats the policy of the Chinese monetary authorities. Thing is, they can easily diversify into euros, say. That notwithstanding, its unlikely they will partly due to the attendant fall in the value of their foreign reserves.

]]> By: Mickey Klein http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3528 Mickey Klein Thu, 02 Mar 2006 02:10:22 +0000 http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3528 The United States is the healthiest economy in the G8, and our "trade deficit" indicates that foreign capital is flooding into the country at increasingly rapid rates. By the indicators, it appears the Chinese will only increase their interest in investing in the United States, with or without a president who will term out in 2008. The United States is the healthiest economy in the G8, and our “trade deficit” indicates that foreign capital is flooding into the country at increasingly rapid rates.

By the indicators, it appears the Chinese will only increase their interest in investing in the United States, with or without a president who will term out in 2008.

]]> By: jim http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3525 jim Wed, 01 Mar 2006 22:58:48 +0000 http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3525 I was reading the blog of Berkeley economics professor (DeLong) and he's saying that the dollar could crash any day cos the Chinese might lose faith in the Bush Adminisration (and stop buying Treasuries). In which case, we're all doomed. A pretty scary scenario. I was reading the blog of Berkeley economics professor (DeLong) and he’s saying that the dollar could crash any day cos the Chinese might lose faith in the Bush Adminisration (and stop buying Treasuries). In which case, we’re all doomed. A pretty scary scenario.

]]> By: gary http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3519 gary Wed, 01 Mar 2006 16:29:50 +0000 http://www.californiapatriot.org/blog/2006/02/28/are-you-afraid-of-china/#comment-3519 The Bank of China are not investing for profit. Theyre doing to to bolster the value of the yuan. I think they're foolish not to diversify into something else. That said, I think theyll continue buying Treasuries for a long time yet. I agree, theres piles of horror stories about a dollar collapse that are just misguided. And theyre politically motivated by leftists so as to undermine the Bush Adminisration. The Bank of China are not investing for profit. Theyre doing to to bolster the value of the yuan. I think they’re foolish not to diversify into something else. That said, I think theyll continue buying Treasuries for a long time yet. I agree, theres piles of horror stories about a dollar collapse that are just misguided. And theyre politically motivated by leftists so as to undermine the Bush Adminisration.

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