Categories

Economy & Politics

Tools

  • Economy & Politics
  • Investing
  • Personal Finance
  • Related Posts


    Radioactive Wild Boars Still Run Wild In Germany, 28 Years After Chernobyl
    American Companies Are Falling Out Of Love With China
    Seoul’s Most Famous Dog Meat Restaurant Has Closed
    The Key Differences Between Indian And Chinese Students Studying In The US
    According To The Feds, There’s No Such Thing As Islamist Terrorism
    Ex-NSA Director, U.S. Intelligence Veterans Write Open Letter To Merkel To Avoid All-Out Ukraine War
    The Manufacturing World Suddenly Goes Into Reverse: Global August PMI Summary
    Where Do ISIS Fighters Come From?
    Asian Property Prices Are Falling “As If There’s A Global Financial Crisis”
    Ron Paul: Perhaps Obama’s “Lack Of Strategy Is A Glimmer Of Hope”
    Russia, China Begin Construction Of World’s Largest Gas Pipeline
    Inflation Pressures In Core Food Components
    Saudi King Warns ISIS “Will Reach Europe In One Month, US In Two”
    On Ben Carson, 2016, And Moving On
    Alleged ISIS Laptop Had A Checklist For Creating Bioweapons


    Chinese Yuan Hits Record Against U.S. Dollar

    Here’s an interesting experiment: Take $100 in U.S. greenbacks and swap them for Chinese Yuan. Wait a year. Cash them in next April and see how many dollars you get back.

    That’s not meant as financial advice — at least not yet. It’s an illustration of the contrast between the U.S. and Chinese economies. Last Friday, the value of the Chinese Yuan reached a record high against the dollar. 

    Financial pundits say the Yuan isn’t slowing down. They expect it to continue strengthening against the dollar this year, and they don’t foresee China following the present U.S. economic policy of debasing the native currency in order to circulate more money and stabilize debt payments.

    China pegged the Yuan to the U.S. dollar in the mid-1990s — which means it fixed the Yuan’s exchange rate at a constant 8.27-to-1 ratio — and kept it there until 2005, followed by one more brief flirtation with the dollar in 2008.

    The trade growth China was able to cultivate between the 1980s and today was greatly accelerated by the dollar’s relative strength: In 1985, China’s U.S. imports were valued at $4 million, a figure that had exploded to $337 billion by 2008. But since 2010, China has stepped out, with economic leaders confident they don’t need to tie the country’s currency fluctuations to that of the Greenback.

    China’s preoccupation with reining in a runaway real estate market — a predicament similar to the last throes of the U.S. housing boom of the early 2000s — could adversely affect the value of its currency. But, like ships passing, the Chinese economy is ascendant relative to that of the U.S.; and if the housing market cripples China’s economy, it won’t be pretty here in the United States, either.

    Discuss this Story:

    Comment Policy: We encourage open discussion. Comments including racist statements, profanity, name calling or spam will be removed at our discretion. We use filters for spam protection. If your comment does not appear it is likely because it violates the policy.

    We Are At War With ISIS And They Are A Real, Sophisticated, Threat
    Read My Lips: We Don’t Have A Strategy Yet….
    Losing Ground: Southeast Louisiana Is Disappearing, Quickly
    Japan’s ‘Abenomics’ Feared In Trouble As Challenges Build
    Cheap Energy Pulls Down Euro Zone Producer Prices Drop In July
    Ex-House Leader Eric Cantor Joins Wall St. Firm
    America’s Favorite Six-Figure Jobs
    Austerity Debate Flares As Europe Recovery Fades
    Bashing The Koch Brothers While Taking Soros Money: It’s A Democrat Thing; You Wouldn’t Understand
    Police Lobby Gears Up To Protect Militarization Of Law Enforcement
    Rand Paul: Hillary Clinton Is A Warmonger Who Would Get Clobbered In 2016
    Personal Spending Suffers First Drop Since January As Consumer Income, Outlays Miss
    Putin Says Everything U.S. Touches Turns Out Like Libya Or Iraq
    Obama: “We Don’t Have A Strategy Yet”
    A World Without Fractional Reserve Banks And Central Planning
    Obama’s National Security Council Meeting Has Concluded: Here Are The People Bringing You ISIS “Strategy”
    The Fed’s “Mutant, Broken Market”
    What Leading From Behind Looks Like
    The Democrats’ Problem
    The Drums Of War Beat For ISIS But Is Obama Ready?
    Eurosclerosis Comes To The U.S.
    Moscow Strategists View World As War Theater
    Arm Ukraine If You’re Ready To Fight For It 
    South China Sea Follies
    Now It’s Macau That’s Mad At China
    Islamic State’s Centuries-Old Strategy
    Hamas’s Big Victory Was Over The Arab States
    Nation Of Privilege Versus Rule Of Law
    The Republican Obamacare Battle Plan For 2015 
    Putin Has Changed The Game In Ukraine
    Read more from Economy & Politics...

    Liberty Investor Digest

    Get today's most important
    financial headlines all in
    one place by email!



    Sources


    close[X]

    Sign Up For Liberty Investor Digest™!

    Get Liberty Investor Digest FREE By Email!

    Input your name and email address in the fields below and get today's most important financial headlines sent straight to you inbox!

    Privacy PolicyYou can opt-out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.