Good Article

Re: [spiers] Good Article

So after importing our products and collecting our money from retailers, we
will be faced with a choice between holding the dollars or exchanging them.
Into ...?

I was chatting with a man recently who works in commercial banking at
Cathay Bank in Seattle. He indicated that all of his ethnic Chinese
customers living here, are now immediately converting any dollar profit
from transactions, into renminbi. RMB are not well accepted at the stores
around town, so that is a pretty bold position to take. Perhaps our
guidelines would be to keep enough RMB for the next business transaction.
But after reading your article, perhaps we should be exchanging part of our
personal assets into foreign currencies.

At 01:05 PM 9/15/2005 EDT, you wrote:
>Folks,
>
>At the below website is a very good article by Richebauer at bottom of
page...
>
>
>http://www.dailyreckoning.com/Issues/2005/DR091405.html
>
>
>One observation he makes...
>
>
>"In China, however, the specific components are real estate and
manufacturing
>investment, while in the United States, it is consumer-spending excess. "
>
>
>Think about this... we have expensive (overpriced?) houses with big
mortgages
>and the Chinese have overpriced property that they own... USA has and cool
>computers and cars and refrigerators... and the Chinese have world class
>manufacturing capability. Who is in the better position?
>
>
>This is a result of Chinese policy taking advantage of USA policy. The USA
>is the initiator, in the driver seat. We will not do what is necessary to
end
>this situation (eliminate the fed), but it does not mean we cannot do well
and
>do good as this scenario unfolds.
>
>John

Bookmark this post --- Email this post