Trade FX Currency

Archive for the ‘currency trading strategy’ Category

The evil of the US dollar
By Asif Salahuddin

http://www.atimes.com/atimes/Global_Economy/JK21Dj05.html

(This is actually a brilliant analysis of fiat currency – but partisan )

CHINA AND THE GLOBAL CRISIS
Beijing holds key to prosperity
China’s best contribution to stabilizing the world economy is to develop the country’s domestic market, raise earnings and pursue full employment – a strategy opposite to that being pursued in the United States. It should also cease importing dysfunctional economic systems such as predatory, neo-liberal, cowboy market capitalism. – Henry C K Liu (Dec 5,’08)

http://www.atimes.com/atimes/Global_Economy.html

China’s yuan set to reverse course
By Kosuke Takahashi

TOKYO – China, faced with factory closures and slowing export growth as the global economy slows, is apparently prepared to weaken the value of its currency
against the US dollar in defiance of a key policy goal of the United States, even as US Treasury Secretary Henry Paulson visits Beijing this week.

A weaker yuan, which would signal an about-turn by Beijing after three years of appreciation, will help to hold down prices of China’s exports, raising the likelihood of further increases in its already contentiously high trade surplus with the US. At the same time, a lower yuan will make imports to China from the US more expensive at a time when American workers are fast losing jobs

http://www.atimes.com/atimes/China_Business/JL05Cb04.html

Dumdum

I agree with you – but isn't it quite clear they don't care about anyone else but themselves?

Isn't it also clear they are going to follow the message of Thomas Jefferson to the letter ?

Trade with everyone ally to no one.

Once they begin to see the US as a liability they will pull the plug no matter the cost to the US – they will see it as short term suffering for their people in exchange for long term gain and remember they don't care about their own people all that much – and your 3rd in line behind them

Are we still importing poison pet food ? Are we still importing period from them ? What are the Wallmart shelves filled with

Your elites don't care about you the Chinese elites aren't going to sweat it if a few of theirs starve either

Firstly brilliant first article. At the moment China relies on the US and the US also relies heavily on China. China does invest heavily in the US which helps the US economy and allows China to get a large return on its capital. However I think now because of the economic crisis China is beginning to see the US as a liability.

powered by Yahoo Answers

Tweet This Post

A main purpose on tariffs on imports is to ______.
[a] maintain domestic competitiveness
[b] promote free trade
[c] stabilize foreign currencies
[d] increase imports

China and India require that when foreign firms enter into joint ventures with local firms, the local partners must have the controlling ownership stake. What does this illustrate?
[a] business ethics
[b] local content laws
[c] tariffs
[d] social responsibility

After managers determine the firm’s goal, what do they do next?
[a] develop tactics
[b] develop a comprehensive strategy
[c] develop an operational plan
[d] develop a mission

Which of the following statements about conceptual skills is most correct
[a] Conceptual skills are most important to top managers
[b] Conceptual skills are most important to first-line managers
[c] Conceptual skills are most important to middle managers
[d] Conceptual skills are equally important at all levels of management

ACTUALLY SOME HAVE A COUPLE OF GOOD ANSWERS, I hope I helped you make the right choice though
A—-a
B—-d
C—-b
D—-d

powered by Yahoo Answers

Tweet This Post

*Its only net exports (excepting food) were technology for war and weapons for war.
* its world economic dominance was soon to evaporate, due to a massive changeover to a newer rising currency, we'll call 'urow's', as the world's petro-dollar and trade currency.
*your country had lost political leverage as the only world's superpower by attacking other countries pre-emptively and was now alienated by other countries which formed alliances against it.
* your country was trillions of dollars in debt and sinking under the weight of failed strategies to prop it up financially artificially.
AND
YOU HAD AN IGNORANT CITIZENRY WHO WAS OBLIVIOUS TO ECONOMIC LAW'S IMPACT ON COUNTRY FUTURE STABILITY.
What actions would you take first to 'right the ship and prevent the fall of this newest 'last of the roman empires'……….before it's currency was removed as the world trade standard and its resulting inflationary times rendered it a third world country? Would the people listen, to change?

Wow, lots of problems…where to begin, eh? When we think of a nation in the world today I don't think that we have the luxury to take these problems one at a time. So as I explain what I think should be done, keep in mind that most of it will have to happen at the same time, and not nice and neatly broken into single steps. A country in today's modern world needs to be flexible and ready to change to what happens in the world around it, especially when we think about economics, and government policies, pertaining to economics.
OK so to answer the question, two most important things that should be done would be 1) To regain the trust and support of other major economic players in the world. While every country is important, the countries I would want to have the support of would be China, the western countries of the European Union (UK, France, etc…), India, and Brazil. Again while every country is important these countries have special economic influence. Weather with a developed economy, a developing economy, or a potentially rapidly developing economy, that I feel in gaining the trust and support of these major countries will help spread trust with other smaller countries that have strong ties with these countries and not with mine. 2) Fix our budget. Hmm…where to begin eh? Id start with our current currency loosing value to this other currency "urow's." How does one strengthen ones own currency? Well lets think about what can reduce a currency's value? Inflation is the major problem that I would try and fix, to increase our currency's value. Having a strong dollar is very important, it help when other countries have faith in your economy, and when you start to pay back your debt, you are paying it back with good solid money. I know that my country borrows money/capital from other countries, we don't use "urow's" so we borrow a amount in our dollar. The country that loaned us that money is/was confident in our strong dollar, so when we pay them back it will be worth what we borrowed. With a weakened dollar, the lender would loose money when the borrower paid them back because the dollar lost value, unless they adjusted for inflation in the dollar. With a weak dollar other economies are hesitate to loan us money, and they might try and collect now, before the dollar gets weaker to save themselves from a potential loss of money/loaned funds. So I would increase our dollars value by beating back inflation. To combat inflation, consumption will HAVE to decrease dramatically. Interest rate will go up to increase savings and decrease borrowing. Without as much borrowing, we combat inflation because there is less money in the market. This will come at a cost of decreased economic activity, because economic growth is driven by spending (aka consumption). In order to put the nation back on the right track these are problems that must be weathered.
Ugg, well these are the first two things I would do to to put my mythical country back on the correct economic plan, according to me. There are many, many, many different economic soutions that can be presented. With my limited knowledge I think what I mentioned above is the first right steps to fix the problems you stated. There would be so much more to do, but I really dont feel like typing anymore. So there you go, if you have any questions about anything I said, hollar.

powered by Yahoo Answers

Tweet This Post