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"THIS" is the Big One: Chinese exporters shun flagging dollar
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  1. #1
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    "THIS" is the Big One: Chinese exporters shun flagging dollar

    Chinese exporters shun flagging dollar

    By Robin Kwong in Hong Kong

    Published: March 27 2008 22:02 | Last updated: March 27 2008 22:02

    Rising numbers of Chinese exporters are shunning the US dollar or devising ways to offset the impact of the falling currency as they confront rising labour and raw material costs at home.

    According to Alibaba.com, the online company that matches Chinese suppliers with international buyers, the vast majority of their almost 700,000 Chinese suppliers no longer use dollars to settle non-US transactions to minimise foreign exchange risk.

    “They are moving to euros, pounds, Australian dollars or even quoting prices in renminbi,” David Wei, chief executive, told the Financial Times. Moreover, he added, prices quoted in dollars were now often valid for just seven days compared with the 30-60 days common previously.

    The dollar has long been the currency of choice for Chinese and other exporters around the world. However, the impact of its recent weakening has led exporters to begin questioning its place as the de facto world currency.

    The renminbi, which western governments have long alleged is undervalued, thus giving Chinese exporters an unfair advantage, has appreciated 6.7 per cent against the US dollar in the past six months. Economists expect it to rise 10-15 per cent against the dollar in 2008.

    Quanzhou Leething Garment & Knitting, a Chinese men’s underwear factory, said it had started encouraging clients to pay in euros instead of dollars in November. While the Chinese currency has appreciated against its US counterpart in recent months, it has moved little against the euro.

    Other companies have taken more unusual approaches, such as setting their own exchange rates and therefore in effect raising prices.

    Xiao Zheng, chairman of Dongguan City Shima Toys in southern China, said its price quotations were valid for three months but were calculated based on an exchange rate of Rmb6.6 to the dollar.

    With the official exchange rate at Rmb7.01 to the dollar on Thursday, this in effect raised prices 5.8 per cent.

    “We are thinking about renewing our quotations every other month and we are also going to offer quotations in euros very soon,” said Mr Xiao.

    William Fung, managing director of Li & Fung, a global supply chain company, said international buyers would have to accept higher export prices from China, especially for goods such as toys that are largely made only in the country.

    http://www.ft.com/cms/s/0/aac6859e-f...077b07658.html
    Last edited by JohnGaltfla; 03-27-2008 at 09:45 PM.
    “If we must have an enemy at the head of government, let it be one whom we can oppose, and for whom we are not responsible.” – Alexander Hamilton

    John Galt, www.johngaltfla.com

  2. #2
    I wonder if China Mart will be making change in renminbi? Thanks for the head's up. It won't be long until OPEC follows them.

  3. #3
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    Quote Originally Posted by Maher View Post
    I wonder if China Mart will be making change in renminbi? Thanks for the head's up. It won't be long until OPEC follows them.
    Maher, the problem is the currency conversion issue...we have no "reserves" so the importers have to convert at their level at their banksters.

    This should shoot the Euro to 2:1 sooner rather than later.

    And inflation off the charts.
    “If we must have an enemy at the head of government, let it be one whom we can oppose, and for whom we are not responsible.” – Alexander Hamilton

    John Galt, www.johngaltfla.com

  4. #4
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    whooo hooo

    and wow

    phew

    thanks, John. Going to take a few minutes to digest this news.

  5. #5
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    Yea, John; -saw it on the "other board", trying to digest now.

  6. #6
    This sounds really bad.

    I think some of the Q1 numbers for banks are coming out next Monday? Should be a fun day.

  7. #7
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    Quote Originally Posted by Great Northwet View Post
    Yea, John; -saw it on the "other board", trying to digest now.
    I thought it was appropriate to warn everyone. News like this is about as big as it gets.

    Good luck to those importers who will soon convert to Yuan or Euros to buy products overseas.

    That's going to leave a mark.....
    “If we must have an enemy at the head of government, let it be one whom we can oppose, and for whom we are not responsible.” – Alexander Hamilton

    John Galt, www.johngaltfla.com

  8. #8
    So, in 7 days look for a 5.8% increase for imported items from China.

    Inflation, than hyperinflation and then collapse; How long do we have (JG can you make a good guess)?

  9. #9
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    Quote Originally Posted by CnMO View Post
    So, in 7 days look for a 5.8% increase for imported items from China.

    Inflation, than hyperinflation and then collapse; How long do we have (JG can you make a good guess)?
    No guesses. They held it together longer than I thought they could.

    When you see a Bradley in front of a local bank branch, that will be the official sound of the whistle indicating that the game is over.
    “If we must have an enemy at the head of government, let it be one whom we can oppose, and for whom we are not responsible.” – Alexander Hamilton

    John Galt, www.johngaltfla.com

  10. #10
    Quote Originally Posted by Great Northwet View Post
    Yea, John; -saw it on the "other board", trying to digest now.
    What other board?

  11. #11
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    Quote Originally Posted by Maher View Post
    What other board?
    I think it would be THIS one:

    http://www.thetreeofliberty.com/foru...4654ad12043afe

  12. #12
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    Quote Originally Posted by Maher View Post
    What other board?
    LOL!!! Time Bomb is the best.

    Moggy

  13. #13
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    "...Chinese exporters shun flagging dollar..."


    This is the end product of continually sending American jobs overseas and signing onto moronic one-sided trade agreements which gives foreign exporters low or no trade restrictions for sending their goods into the USA while often allowing the foreigners to maintain them on American exports.

    This shouldn't come as a surprise to anyone...it's been a long time in the making...and now it's here.

    Welcome to the brave new world order where the importance & relevance of the USA & its currency diminishes ever more swiftly over time.

    Who do we have to thank for this not-so-wonderful situation?

    Everyone - of all political stripes - who has allowed the practice of so-called "free trade" to overcome the smell test of fairness and quid-pro-quo equality.

  14. #14
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    Chinese Exporters Shunning US Dollar

    Yep. It will only get worse.




    Chinese exporters shun flagging US dollar in favour of stronger rivals
    By Robin Kwong in Hong Kong

    Published: March 28 2008 02:00 | Last updated: March 28 2008 02:00

    Rising numbers of Chinese exporters are shunning the US dollar or devising ways to offset the impact of the falling currency as they confront rising labour and raw material costs at home.

    According to Alibaba.com, the online company that matches Chinese suppliers with international buyers, the vast majority of their almost 700,000 Chinese suppliers no longer use dollars to settle non-US transactions in order to minimise foreign exchange risk.

    "They are moving to euros, pounds, Australian dollars or even quoting prices in renminbi," David Wei, chief executive, told the Financial Times. Moreover, he added, prices quoted in dollars were now often valid for just seven days compared with the 30-60 days common previously.

    The dollar has long been the currency of choice for Chinese and other exporters around the world. However, the impact of its recent weakening has led exporters to begin questioning its place as the de facto world currency.

    The renminbi, which western governments have long alleged is undervalued, thus giving Chinese exporters an unfair advantage, has appreciated 6.7 per cent against the US dollar in the past six months. Economists expect it to rise 10-15 per cent against the dollar in 2008 and it is expected to rise a further 10 per cent in value this year, according to Qing Wang, economist at Morgan Stanley China. He warned that pace could quicken to more than 15 per cent should inflation in China, already running at a high level, continue to climb.

    Quanzhou Leething Garment & Knitting, a Chinese men's underwear factory, said it had started encouraging clients to pay in euros instead of dollars in November. While the Chinese currency has appreciated against its US counterpart in recent months, it has moved little against the euro. Orders placed in US dollars are now subject to having their prices adjusted according to the latest exchange rate just prior to shipping, said a company spokeswoman.

    Dongguan Wang Cai Garment, based in the southern Chinese province of Guangdong, exports mainly to Europe and quotes prices in US dollars but this year began updating their quotations every week.

    Other companies have taken more unusual approaches, such as setting their own exchange rates and, therefore, in effect raising prices.

    Xiao Zheng, chairman ofDongguan City Shima Toys in southern China, said its price quotations were valid for three months but were calculated based on an exchange rate of Rmb6.6 to the dollar.

    With the official exchange rate at Rmb7.01 to the dollar yesterday, this in effect raised prices 5.8 per cent.

    "We are thinking about renewing our quotations every other month and we are also going to offer quotations in euros very soon," Mr Xiao said.

    Bruce Rockowitz, president of the trading arm of global supply chain company Li & Fung, said many Chinese companies still favoured US dollars because "everybody is used to using [that currency]. But it all comes out in the price."

    William Fung, managing director of Li & Fung said international buyers would have to accept higher export prices from China, especially for goods such as toys that are largely made only in the country.

    "The final result is they will buy at a higher price, but at lower volumes," he said. Mr Fung added that retailers are mitigating the effects of higher costs by locking in proprietary, or exclusive brands, which in turn allows them to charge higher prices to consumers.


    http://www.ft.com/cms/s/0/95f406ee-f...nclick_check=1

  15. #15
    bump. i can't believe no one has commented on this.

    thanks DS for the article. very informative. this quote from the article really jumped out at me.

    "prices quoted in dollars were now often valid for just seven days compared with the 30-60 days common previously. "

    so much for hoping we were at least treading water.
    bh

  16. #16
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    The irony I see is that if i remember correctly, we were tryin for years to have the dollar worth less against their money, as they were artificially devaluing their currency to promote exports to us.

    What benefit were we tryin to get by changing the exchange rate vs the dollar to be less on our favor? Are we now gonna get that?

  17. #17
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    well, I say good, they can keep their junk , and poisoned food.
    blessings to all momof23goats

  18. #18
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    Quote Originally Posted by momof23goats View Post
    well, I say good, they can keep their junk , and poisoned food.
    Yeah, maybe now we can rebuild our manufacturing base and tho it might cost a bit more buy items that don't fall apart after one use. Buy shoes that don't cause chemical burns amd pet food that won't kill our animals.
    "It ain't no secret I didn't get these scars falling over in church."


    I have not failed. I have simple discovered ten-thousand ways things don't work.

  19. #19
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    Sorry, but it's a dup- originally posted March 28, '08...

    ttp://www.timebomb2000.com/vb/showthread.php?t=282866

    dd
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  20. #20
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    Merged DS's thread into this one...
    Do not pray for easy lives. Pray to be stronger men. Do not pray for tasks equal to your powers. Pray for powers equal to your tasks. Then the doing of your work shall be no miracle, but you shall be the miracle.
    Phillips Brooks (1835 - 1893)

  21. #21
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    My two cents...

    There won't be many Bradley's parked in front of banks...

    and here is why...It takes an incredibly long supply chain to keep these things up and running. Well lets say to keep a U.S. soldier up and running. Food, water, ammunition just to mention a few.

    In the U.S. there are not large stockpiles of these sitting on military bases waiting for the end times. The supplies they keep are limited to mostly training ammunition. Hell, even most of the vehicles have gone over to the sandbox and what is left is in a state of disrepair and is held in a centralized location. If troops need the vehicles for training they literally go check them out for a month and then turn them back in.

    But back to my point...considering the logistical supply chain, (which also keep in mind now requires an enormous amount of contracted support) If we did see any Bradley's they wouldn't be there for a terribly long time.

    Just my two cents...I could talk/type for hours on this subject.

  22. #22
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    I found this article interesting ...

    http://www.latimes.com/news/nationwo...3.story?page=1
    bosifus

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