Saturday, October 30, 2010

Make the United States and China Kissed and above?

The recent game between the United States and China had the look of a full line. And last G20 weekend show seemed to offer more confirmation with Geithner proposes a cap on the current account surpluses aimed especially at China.

But now the Financial Times tells us that the relationships are already on the mend.

China and the United States were the basis of an agreement of the Summit of the Group of 20 leading nations month next on the definition of the objectives of reducing trade imbalances, according to the Chinese Central Bank Advisor.

Li Daokui, Member of the Committee of the Central Bank and Professor at Tsinghua University, monetary policy said Tuesday there were "progress" weekend Korea South, who had left debate "surface issue" G20 Finance Ministers meeting nominal "speaking from the bottom of global rebalancing trade foreign exchange rates.

"China shouldn't fear of numerical targets to reduce its trade surplus, Mr. Li has stated in an interview." China is well positioned politically and economically to this adaptation. ?

The Financial Times noted that Li is not a government official, but article argue that his remarks pointing to a genuine movement.

Or they do?The United States would never push hard China. Not that he couldn't pas.divers analysts have suggested that the United States holds the best cards were things to get ugly. But it is well known team Obama flashes in any staredown. China was linked if she spoke quite difficult.And it is not clear that the Treasury had his heart in this struggle. Geithner has constantly increased its rhetoric in response to pressure from Congress and composed return soon possible.Il seems clear that he intended to push the schedule of the war of words with China passed the divide Congress, given that legislative saber-racket probably lessen.

However, in the last serious financial crises, it is creditor nations such as China facing a more difficult than the debtor countries as the United States adjustment.Debtors is sufficient to worse by default or restructure their debts or to amortize their currencies. However, the creditors, actually have to restructure their economies so importante.Les United States and China have delay times day accounts with injections of high liquidity and in the case of China, a fairly heavy deficit.But the growth of China becomes more difficult to argue with each $1 growth requiring $ 7 to $ 8 debt.

But if Li is right and the United States and China are about to see if they can agree on a timetable for China to reduce surplus, what does that really mean?It seems that China is a trade out of immediate pressure on her to leave the rise renminbi to commit future actions.Ah, but these commitments will be specific and, if so, will China live up to them?Examine how his announcement June widely popular, that its moved to a monetary policy oriented market, proved to be a PR ploy that licked press.C' is to be the same?

In fact, if China wants to amortize the renminbi.It has already increased rates of interest in an attempt to refresh its économie.Wen Jiabao emphasized that exporters may not take an increase in currency and as much as 5 %.beaucoup would are differential with the US inflation faillite.Un 5% say United States 1.5%, China 6.5%, reached the same result even with ankle fixe.Il is particularly difficult to find a good reading on inflation in China it is reason to believe that China has no intention of letting the yuan rise and it would reduce if could (offset, is that the dollar has fallen compared to the euro and other currencies, China has a little more space so when you look in all its trading partners).

Therefore, it should not be surprising that after the leave the renminbi increased 2% over the last month, probably to avoid being marked as a manipulator of currency, arrimée China it lower almost one percent at lendemain.De Clusterstock:

We do not know if it is a problem or a medius or quoi.Il is certainly curious.


Talks on the G20 were supposedly productive and everything about the end of the wars of the currency and China and then sets the yuan above 6.69 after closure yesterday just above 6.66.

Elsewhere on the front of the currency, the dollar continues to progress against the yen after record low blows Monday.

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