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"THIS" is the Big One: Chinese exporters shun flagging dollar
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  1. #41
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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.

  2. #42
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    Quote Originally Posted by Dennis Olson View Post
    JGF, damn nice to see you back here man!
    Didn't die, just lurking....and as it starts to accelerate, you'll see more.
    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

  3. #43
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    Quote Originally Posted by White Sunlight View Post
    Actually, this news is not as bad as it seems. I do business with China every day and when I offer a price in dollars I lose, because the value of my offer becomes less and less over time. So, I offer the price in the local currency Yuan (or RenMinBi) and now as time progresses the value of my offer becomes greater and greater and if a Chinese company is slow in paying I have a natural way of collecting funky interest by the depreciation of the dollar.

    Now, the only problem I have is the exchange move from Yuan to dollars. This cost between 1.5% to 3.0% depending on volume and who is doing business with you. The Chinese partner has to have an import and an export license and then he can exchange the invoice in Yuan to dollars and wire you dollars.

    The Chinese government passed laws that state that the first 90 days of an invoice will not have any penalty given by the government if the currency exchange is made in the first 90 days. Between 90 days and 180 days there is a small fee that is less than 1% for making the exchange. After 180 days a considerable penalty occurs for a late payment. This is the bummer law. At 180 days then you have to tap into the rights of the normal citizen in China. Citizens have a write to exchange their own money up to $USD 50,000 every year, so then you tap into people you know and do creative accounting.

    The manufacturing bubble is more extreme than the subprime bubble because at the end of the manufacturing bubble a company is caught holding all this expensive equipment, labor force, land and running company with only a few buyers. This is what is next on the agenda next year.

    Secondly, the handling of people in China is far more difficult than in the US. We have been brainwashed since the fifties with our TV and Radio making our thoughts of one accord. The TV and its brainwashing in China has only really occured in the past 15 to 20 years. Moreover, a deep resentment to the government has always been there while there is a common bond among the Han people from history and culture that bond will not have much weight when the SHTF.

    In speaking to Chinese about the coming famine and new world order, they are basically out of it, not even knowing the history of the West they suffer from lack of information.

    The past seven to ten years in China have been nothing but a great party. Every meal that is eaten by the successful one is always over done and too much. Rice which use to have a culture to it, now barely makes it to the meal, sometimes it is throw in at the end as an after thought. Certain businessmen will only order two plates for every one person sitting, but I have found excessive ordering up to five plates per individual in this modern babylon a common way.

    The dollar is weak and pathetic, yes this I know. But the shock that China will have in the coming hard times will be great. Look for riots and unrest and a miltary mind coming soon to the streets of Beijing, Shanghai and Guangzhou.
    That's what I've been trying to say to everyone:

    Since when did the word "communist" escape everyone's attention. The military will squash the system and they WILL nationalize our factories to get repaid....
    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. #44
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    Quote Originally Posted by Great Northwet View Post
    You know HB, that's an interesting point about the Olympics. I wonder if the Chinese might change their policies regarding the dollar after the Olympics are over.
    THAT is a mortal lock. They have had it with us. As has much of the world.
    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

  5. #45
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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

  6. #46
    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

  7. #47
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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?

  8. #48
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    well, I say good, they can keep their junk , and poisoned food.
    blessings to all momof23goats

  9. #49
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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.

  10. #50
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    Good catch DS +100.

    And Satanta, I agree, they should just keep it and save us all the trouble.

    Loup

    (Ask yourself: What's in your Wallace?)

  11. #51
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    Techno

    the real shame of it that since Nixon we have given them hundreds of billions of our dollars, perhaps trillions. And they now hold us over a barrel and they do have plenty of our politicians in their pocket.

    They can hurt us very badly, if they decide that the cash in their pocket is worth less than the damage they can cause us.

    Strategically, they are in a position right now where we are very weak due to our "rulers" and they can hurt us. And at the right time, they could concievably bring our economy down.

    It is not the Russian Orthodox Church that has us by the short and curleys as some would have you believe. It is the Red Chinese.

  12. #52
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    Quote Originally Posted by dragonslayer2001 View Post
    the real shame of it that since Nixon we have given them hundreds of billions of our dollars, perhaps trillions. And they now hold us over a barrel and they do have plenty of our politicians in their pocket.

    They can hurt us very badly, if they decide that the cash in their pocket is worth less than the damage they can cause us.

    Strategically, they are in a position right now where we are very weak due to our "rulers" and they can hurt us. And at the right time, they could concievably bring our economy down.

    It is not the Russian Orthodox Church that has us by the short and curleys as some would have you believe. It is the Red Chinese.
    thats it red chinese. all my youth there was a place called red china. when did they drop the red?
    ========================================
    DONT BLAME ME! IM NOT MY FAULT!
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  13. #53
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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 isnt how angry we are at politics and politicians; its how little weve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  14. #54
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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)

  15. #55
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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.

  16. #56
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    I found this article interesting ...

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

  17. #57
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    It looks to me that China is still accepting Dollars for goods the US and Walmart buys even if the prices are inflating daily.

    When China refuses to accept the Dollar from the US and Walmart.........
    That is when it is over.

  18. #58
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    Quote Originally Posted by Bullwinkle View Post
    It looks to me that China is still accepting Dollars for goods the US and Walmart buys even if the prices are inflating daily.

    When China refuses to accept the Dollar from the US and Walmart.........
    That is when it is over.
    This is tiny, but relevant I suppose.

    I've got three growing kids to clothe and I love to sew. But I never sewed much clothing because it USED TO BE that the fabric was more expensive than buying ready-made at Target or WalMart.

    Not anymore. The discount/imported clothing prices are now double or triple the price of fabric required to personally make an outfit.

    That's a big difference between 2008 and 1987 when I began clothing children. And it happened suddenly. In 2007 it was still cheaper to buy ready-made.

    Perhaps this is an effect of the dollar devaluation in all those third-world places where most Americans' clothing is made.

    FLF

    .

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