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Thread ID: 115417 2011-01-17 07:49:00 Hu: Blames The US Dollar SurferJoe46 (51) PC World Chat
Post ID Timestamp Content User
1170502 2011-01-21 23:27:00 Yes I agree HU wants the Yuan to be a reserve currency.

But that needs 2 things.
Enough Yuan circulating in the world to be handle the huge volumes.
The Yuan to be free floating.

Both of these are going to take a while, especially as the former wont happen much till the latter happens, and China can't afford to let the Yuan float as it will affect their manufacturing (jobs) and their exports. They say it won't but it will, or they would have done it by now. Chinese politicians speak with forked tongue.

Also I query if the US really wants a rising Yuan the price of day to day stuff will go up eg jeans, mp3 players, computers at a time when the average American is hurting.

But I don't believe the line that China holds the US to ransom as it holds all the US bonds. If they want to take their money out of the US, they have to be able to sell the bonds to someone

In the meantime the world has to make do with deflating US dollars (QEII) and Euros.
The yen and the pound are not big enough.

And it looks like nothing major is going to come out the the meeting of Hu and Obama. (as if we thought it would) Neither wants to push the other too much.
Digby (677)
1170503 2011-01-23 02:59:00 SJ, read a interesting article by Richard Palmer:

Why Chinese miners are smiling.

China appears to hold 97 per cent of: Rare Earth Minerals, Y, Sc and La which are used in high-tech products.

Lurking.
Lurking (218)
1170504 2011-01-23 03:03:00 I'm not sure if it applies to those 3 rare earth minerals.

But many other countries have rare earth minerals.
They just stopped mining them as they are very toxic to process.
So they just buy them from China.
But now they are having second thoughts.
Digby (677)
1170505 2011-01-23 03:25:00 SJ, read a interesting article by Richard Palmer:

Why Chinese miners are smiling.

China appears to hold 97 per cent of: Rare Earth Minerals, Y, Sc and La which are used in high-tech products.

Lurking.

To put it right, China has about 30% of the rare earth resources and is supplying 90% of the world current demand!

Don't ask me why, I don't understand too.
bk T (215)
1170506 2011-01-23 03:50:00 Denuding precious resources sounds like a soon-to-be vanquished people to me. SurferJoe46 (51)
1170507 2011-01-23 21:04:00 Denuding precious resources sounds like a soon-to-be vanquished people to me.

Agree with you but why are all the developed nations like the US, Japan, and EU are blamming China for controling (reducing) the export of rare earth?
bk T (215)
1170508 2011-01-23 23:01:00 Agree with you but why are all the developed nations like the US, Japan, and EU are blamming China for controling (reducing) the export of rare earth?

I hadn't head that story - but it makes sense.

If China decided to hold back, then the other producers would have to sell THEIR precious supplies and liquidate their country's assets.

It's all a matter of financial brinkmanship.
SurferJoe46 (51)
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