US Dollar collapsing

[JimmyCracksCorn]

Damn, what a collective inferiority complex this nation has.

Not really, it just makes good economic sense. Especially considering Canada is the US's Walmart.

[Tingkai]

Originally posted by Wezil
Alright, I'm convinced. It would be much better for our dollar to be dropping. How low shall we aim my fellow countrymen? 60 cents? Hell, let's dream BIG and go for 40....

I understand rapid change can be very disruptive, which is why our collective governments need to get off their arses and make the fundamental taxation/spending changes that need to be made so our industry can compete w/o a 20%+ exchange cushion.

Damn, what a collective inferiority complex this nation has.

Actually, you're a prime example of Canadian inferiority.

If the Canadian dollar was worth 60 cents American, you would see the Canadian dollar as weak when it might not be.

The Hong Kong dollar is worth 13 cents American. Does that mean the HK dollar is weak? No. Does it mean that HK has massive taxes? No. Does it mean HK people are poorer than Americans? No.

It just means a different measuring unit is used for prices.

Canadians need to get over the stupid idea that the Canadian dollar should be on par with the US dollar.

[Dinner]

To be fair parity makes life easier for everyone living near the border who who does business across the border.

[JimmyCracksCorn]

Originally posted by Oerdin
To be fair parity makes life easier for everyone living near the border who who does business across the border.

Not the people who make a living off people coming to one side or another for better deals.

Parity would only make sense if wages and the cost of living were the same on both sides of the border. Which they're not.

[Tingkai]

Originally posted by Oerdin
To be fair parity makes life easier for everyone living near the border who who does business across the border.

It would be an insignificant difference.

[Lawrence of Arabia]

hey tingkai, why did china buy 20b USD yesterday if they set their rate by printing more and not by buying USD?

[Dinner]

Originally posted by Tingkai


It would be an insignificant difference.

It does make conparission shopping easier for people on the border.

[Tingkai]

LOA: It would be more correct to say that China sold US$20 billion worth of RMB.

Edit: In other words, people want to buy more RMB than those who want to sell it so China is left with a surplus of US$20 billion.

Do you have a link that says China went out and bought US$20 billion independently of demand.

[Dinner]

Originally posted by Lawrence of Arabia
hey tingkai, why did china buy 20b USD yesterday if they set their rate by printing more and not by buying USD?

The fall of the dollar only disturbs the export secter of their economy which is important but not as large as the domestic market. Printing more currency would case large scale inflation for the entire domestic market thus making hundreds of millions of Chinese unhappy.

Besides China has such a price advantage that even with these relatively small adjustments they'll still be WAY cheaper.

[Lawrence of Arabia]

who did chna sell it to?

[Tingkai]

Sell what? RMB?

The sale of RMB depends on the amount.

An individual can go to a Chinese bank and purchase relative small amounts over the counter.

An exporter/importer needs documentation show that goods were sold before the money is converted, although these days it's fairly easy to make these conversions.

An investor requires different types of documentation with more rubber stamps before the money can be converted.

[Dinner]

They traded their fake second currency for dollars is what they did. China needs to get rid of the RMB and just stick with Yuan.

[Lawrence of Arabia]

Sell what? RMB?

yep

[Tingkai]

see my edit post.

Better yet, what's your point.

[Tingkai]

Originally posted by Oerdin
They tradeed their fake second currency for dollars is what they did. China needs to get rid of the RMB and just stick with Yuan.

They have. RMB to the Yuan is like the dollar to the buck.