Community Views : What’s on the boards today….15th Oct 2010

15th October 2010

The Telegraph

"China has again warned the US not to use the dispute over the value of the Chinese currency, the yuan, as a "scapegoat" for its high unemployment and flagging growth prospects."

pumpernickel thinks: "Of course, the Chinese are manipulating their currency. So are the powers behind the $, the £ and the €, only perhaps less so. So what's the fuss all about?

"What the Chinese are perhaps lacking is the willingness to coordinate their manipulating with the other players to the full. A just reminder that the US cannot have it all its way, since they do not live what they preach."

The Telegraph

"The dollar slumped against the world's major currencies on Thursday on mounting speculation that the US will unleash another vast round of quantitative easing."

Leading to a retaliation from China regarding the criticism they have been getting from the US about the value of the yuan, "The dollar's depreciation appears to be market-driven," Li wrote in the People's Daily newspaper. "In reality, it is a depreciation coloured by very strong, deliberate actions."

bill40 comments: "While I admire America for trying , it is outflanked by the Chinese everyway you look at it. For if America devalues the Chinese merely follow it as the yuan is pegged to the dollar.

"This drives up the price of gold and China has increased its reserves of gold considerablely, and I don't mean just paper that says they have gold, I mean real bullion in bank vaults. For the USA the zero's they can add to their deicit are running out."

The Guardian

"Amid fresh evidence that governments are seeking to boost their own economies' growth by manipulating their exchange rates, Pascal Lamy expressed concern that the next step would be the erection of tariff barriers."

quaere comments: "History always simply repeats itself…World trade imbalance and the Chinese refusing to let the yaun float to its proper level..all a toxic cocktail….And will end in tears for us all.."

The Independent

"Is this a genuine recovery or just a bubble caused by central banks' easy money? Economic Life: On a 10-year view or even a three-year view, investing in the emerging markets is a no brainer. On a six-month view that may not be the case"

bryanmcgrath thinks: "I agree that the BRIC countries are growing, whilst the G7 stagnate, but their grow is not enough to justify the 20% in UK/US equities."

The Daily Mail

"A £4 bn raid on the gold-plated pension schemes of the wealthy"

Pete from Lincs says: "You Earn it – they pinch it.

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