See What Tax Cuts For The Wealthy Has Caused:

[Sundial]

I do not diaparage anyone.
Chinese bankers do not have shit to do with anything here.

The reason it matters is that the Chinese central bank controls the amount of Chinese currency in the world. When they make more of it, its price goes down. When they use it to buy dollars, the price of dollars goes up. Expensive dollars and cheap yuan makes Chinese stuff cheap for us, and American stuff expensive for them. The trade deficit is not because American workers are lazy, or overpaid, or can't compete. It's because of the actions of the Chinese central bank.

Man, have you got it ass backwards.
The dollar has been falling for years. When the dollar falls it makes it cheaper for others to buy our goods.
The dollar is NOT expensive against the Chinese yuan. Maybe a little better than it was as China now has to set up factories in Viet Nam and elsewhere to handle their massive capacity. But no where near as strong as it was years ago.
The trade deficit is because workers over seas perform menial dumb ass labor jobs for $10 an hour that American workers demanded $30 an hour + benefits for.
Dude, you left out the massive interest payments we pay on our debt in your analysis. Those payments overshadow and dwarf any influence the Chinese banks have on us.
And guess who the #3 creditor is?
The Chinese GOVERNMENT.

The upper value of the yuan in terms of dollars is decided by China. It sets the exchange rate, and then keeps the yuan from rising above that rate by selling renmimbi and buying dollars. Since China "prints" renminbi, it can't "run out" of its own currency -and the exchange rate, therefore, is whatever it wants it to be. China did allow the yuan to rise a little bit, a few years ago, but it's still lower than it would be, if China didn't intervene to prevent it from rising further.

Since China is constantly buying dollars, those dollars show up in a bank account with China's name on it. China uses those dollars to buy Treasuries.

They must print yuan, and buy dollars, in order to keep their currency from rising, and the amount of yuan they've sold to us is equivalent to the amount of Treasuries they've bought from us.

IOW, China owns Treasuries because it's part of how they keep their currency low and their exports up - not because we need Chinese money.

And it has nothing to do with Americans being lazy.

 

[Gadawg73]

The reason it matters is that the Chinese central bank controls the amount of Chinese currency in the world. When they make more of it, its price goes down. When they use it to buy dollars, the price of dollars goes up. Expensive dollars and cheap yuan makes Chinese stuff cheap for us, and American stuff expensive for them. The trade deficit is not because American workers are lazy, or overpaid, or can't compete. It's because of the actions of the Chinese central bank.

Man, have you got it ass backwards.
The dollar has been falling for years. When the dollar falls it makes it cheaper for others to buy our goods.
The dollar is NOT expensive against the Chinese yuan. Maybe a little better than it was as China now has to set up factories in Viet Nam and elsewhere to handle their massive capacity. But no where near as strong as it was years ago.
The trade deficit is because workers over seas perform menial dumb ass labor jobs for $10 an hour that American workers demanded $30 an hour + benefits for.
Dude, you left out the massive interest payments we pay on our debt in your analysis. Those payments overshadow and dwarf any influence the Chinese banks have on us.
And guess who the #3 creditor is?
The Chinese GOVERNMENT.

The upper value of the yuan in terms of dollars is decided by China. It sets the exchange rate, and then keeps the yuan from rising above that rate by selling renmimbi and buying dollars. Since China "prints" renminbi, it can't "run out" of its own currency -and the exchange rate, therefore, is whatever it wants it to be. China did allow the yuan to rise a little bit, a few years ago, but it's still lower than it would be, if China didn't intervene to prevent it from rising further.

Since China is constantly buying dollars, those dollars show up in a bank account with China's name on it. China uses those dollars to buy Treasuries.

They must print yuan, and buy dollars, in order to keep their currency from rising, and the amount of yuan they've sold to us is equivalent to the amount of Treasuries they've bought from us.

IOW, China owns Treasuries because it's part of how they keep their currency low and their exports up - not because we need Chinese money.

And it has nothing to do with Americans being lazy.

Where did I disagree with most of that?
China keeps the renimibi (RMB) artificially low. That is our main bitch with them.
Our policy with Treasury is to attempt to pressure China to allow the RMB to appreciate FASTER allowing the currency to fluctuate with MARKET FORCES.
"not because we need Chinese $$$"
Where else will we get it where the fiscal policy is to keep their currency low?
The problem is that not all countries view the exchange rate as "price" only. Most countries do but many do not. The big problem is that the current exchange mentality in China keeps them as encouraging large scale investment in export manufacturing fueled by dumb ass menial job labor thus discouraging investment in their own consumer market.
The Chinks view the exchange rate as a way to get rich and modernize their economy fast, very fast. They could care less if their citizens have a market economy or not. Accordingly, the manage the exchange rates to support and favor their export economy.
But the fears that China is "America's banker" are BULL SHIT.
China is more a depositor than a lender. The Chinks have very little, if any, economic leverage over us.

 

[Sundial]

Man, have you got it ass backwards.
The dollar has been falling for years. When the dollar falls it makes it cheaper for others to buy our goods.
The dollar is NOT expensive against the Chinese yuan. Maybe a little better than it was as China now has to set up factories in Viet Nam and elsewhere to handle their massive capacity. But no where near as strong as it was years ago.
The trade deficit is because workers over seas perform menial dumb ass labor jobs for $10 an hour that American workers demanded $30 an hour + benefits for.
Dude, you left out the massive interest payments we pay on our debt in your analysis. Those payments overshadow and dwarf any influence the Chinese banks have on us.
And guess who the #3 creditor is?
The Chinese GOVERNMENT.

The upper value of the yuan in terms of dollars is decided by China. It sets the exchange rate, and then keeps the yuan from rising above that rate by selling renmimbi and buying dollars. Since China "prints" renminbi, it can't "run out" of its own currency -and the exchange rate, therefore, is whatever it wants it to be. China did allow the yuan to rise a little bit, a few years ago, but it's still lower than it would be, if China didn't intervene to prevent it from rising further.

Since China is constantly buying dollars, those dollars show up in a bank account with China's name on it. China uses those dollars to buy Treasuries.

They must print yuan, and buy dollars, in order to keep their currency from rising, and the amount of yuan they've sold to us is equivalent to the amount of Treasuries they've bought from us.

IOW, China owns Treasuries because it's part of how they keep their currency low and their exports up - not because we need Chinese money.

And it has nothing to do with Americans being lazy.

Where did I disagree with most of that?
China keeps the renimibi (RMB) artificially low. That is our main bitch with them.
Our policy with Treasury is to attempt to pressure China to allow the RMB to appreciate FASTER allowing the currency to fluctuate with MARKET FORCES.
"not because we need Chinese $$$"
Where else will we get it where the fiscal policy is to keep their currency low?
The problem is that not all countries view the exchange rate as "price" only. Most countries do but many do not. The big problem is that the current exchange mentality in China keeps them as encouraging large scale investment in export manufacturing fueled by dumb ass menial job labor thus discouraging investment in their own consumer market.
The Chinks view the exchange rate as a way to get rich and modernize their economy fast, very fast. They could care less if their citizens have a market economy or not. Accordingly, the manage the exchange rates to support and favor their export economy.
But the fears that China is "America's banker" are BULL SHIT.
China is more a depositor than a lender. The Chinks have very little, if any, economic leverage over us.

At least we agree about one or two things.