“Rampant issuance of dollars by the United States is saddling China with “imported inflation”, Chinese commerce minister Chen Deming was quoted as saying by state media on Wednesday.”
Too many people are using credit to subsidize lives eroded by job losses and working lower paying jobs as more of their old jobs/economy went to communist China. This is the base of the problem. And communist China doesn’t exactly make it easy for foreign imports and free exchange when they slap huge tariffs on foreign product, manipulate the yuan into a fixed rate, denying their own population to become true global consumers rather be content keeping them enslaved elves in an export only driven market.
This is killing all of us. This cycle has got to stop and China needs to be proactive in allowing its own country to develop a class system with real ability to use its yuan to afford “Made in the Rest of the World”. They’ve got the population numbers that could pull us out of this mess.
Just imagine how in sync the markets would be if the Chinese had equal spending power as North Americans and actually bought stuff we “Made”. Jobs in North American manufacturing would boom again and we would have a real middle-class healthy like it used to be and rebuilding our economic power and having real cash to spend instead of massive credit debt. But unless China lets itself in on the global game in a “fair” exchange with the world..we’ll just see it all sink.
We should wonder if all the crises going on in the markets are manufactured to kick accelerate communist China into developing its own internal consumer market. Over the last decade Communist China has been content to be just an export market without taking any real responsibility in developing a market that the rest of the world could profit off of by exporting to them.
Maybe a lot of these “contrived” crisis in the rest of the world will become an incentive to China in allowing its own people to have some degree of buying power and class structure to become global team players instead of status quo. The yuan has been manipulated and fixed by the communist government which prevents the Chinese from affording products made from the rest of the world. Plus they slap huge tariffs on them that add to costs.
Just imagine how well things would work in the global economy if communist China put as much effort into free exchange of goods into their consumer market with foreign imports and not just fleecing the rest of the world by monopolizing manufacturing and being an “export” only country. The rest of the world is increasingly jobless because mid-class manufacturing jobs have been shipped overseas.
Now people work low pay jobs and go into debt because they don’t have any real cash to pay for housing, groceries and no disposable income for the extras. This increases debt and collapse when people are forced to use credit as a means to keep up. But if communist China has a viable domestic economy they wouldn’t need to use our markets as their singular customer and that would return jobs back to North America to keep up with the demand here. The Chinese would be busy enough with their own internal demand. The yuan must rise to give Chinese spending power.
Dollar printing feeding China inflation: minister
“Given the current situation, companies have thought ahead and prepared for exchange rate fluctuations as well as an increase in labour costs,” Chen said, according to the state-run China Business News.
“But because the issuance of dollars is out of control, and international commodities prices are continuing to rise, China is confronted with imported inflation, which has created major uncertainties for businesses,” he said.
The comments came ahead of a meeting of the US Federal Reserve next week at which the central bank is expected to announce additional stimulus measures.
While critics in the United States accuse China of artificially undervaluing its currency to give exporters an unfair advantage, Beijing says Washington is foisting its economic woes on the rest of the world by printing more money.
Beijing pledged in June to let the yuan trade more freely and the currency has since strengthened slightly, but US and European policymakers say it could be undervalued by as much as 40 percent.
At the weekend, Group of 20 finance ministers meeting in South Korea pledged to “refrain from competitive devaluation of currencies” and aim for “more market-determined exchange rate systems”.
Jittery financial markets were looking for a strong stand from G20 members against beggar-thy-neighbour currency policies, in the leadup to a November 11-12 summit in Seoul.
Chinese Finance Minister Xie Xuren urged “major reserve currency countries to take responsible economic policies”, with the dollar sliding on expectations that the Federal Reserve would launch even bolder monetary easing.
China’s central bank on Wednesday set the central parity rate at 6.6912, weaker than the 6.6762 on Tuesday. The yuan can trade up or down 0.5 percent from that mark.