What Recovery?

[AmazonTania]

I know what might make sense.

Imagine you have a store in Duluth Minnesota. *A Chinese man comes in and wants to buy something. *He offers you Renminbe

Do you take the Renminbi in exchange for your goods?

If I lived in China, I would. But I don't live in China. The United States has to purchase Renminbi in order to purchase Chinese goods, and vice versa for the Chinese regarding American goods. The only problem with this is that the U.S. doesn't actually export much of anything, so it doesn't accumulate much Reminibi from it's trade with China. As a result of this, America doesn't pay for it's imports with exports, but with worthless pieces of Federal Reserve notes.

Now again, if I lived in China and an American gave me their Federal Reserve notes in exchange for my goods, I wouldn't be able to eat, pay the bills or rent with this money. But luckily for me, the Bank of China is willing to intervene and give me Renminbi in exchange for those rather worthless Federal Reserve notes. Now I am able to do everything that I need to do with the Reminibi that I have, and the Central Bank of China can use those USD's to buy US treasuries to prop up our phony economy.

US exports to China were $10.3 Billion for last December alone.

Why go back to last December? Why not just talk about last April where the exports to China was $8.9 Billion? Even still, if you look at the make-up of what those exports were, very few of it was actually products the United States manufactures.

The US doesn't purchase Renminbi from China. *China businesses take US dollars.

I never said that US does purchase Renminibi from China. I only said they have to purchase Renminibi. The basic concept of trade applies: If you want what a countries produces, you need it's currency. Fortunately we can bypass all of this with our reserve currency. So technically (most of the time), we don't actually have to pay for our imports with exports.

And yes, I'm well aware that Chinese businesses are willing to take US dollars in exchange for their goods. Could have sworn I already stated that. Also it would be interesting for you to know that the Chinese have mandated and required that a portion of Chinese savings must be in US Dollars.

 

[itfitzme]

If I lived in China, I would. But I don't live in China. The United States has to purchase Renminbi in order to purchase Chinese goods, and vice versa for the Chinese regarding American goods.*

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US exports to China were $10.3 Billion for last December alone.

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The US doesn't purchase Renminbi from China. *China businesses take US dollars.

I never said that US does purchase Renminibi from China. I only said they have to purchase Renminibi.

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The United States has to purchase Renminbi in order to purchase Chinese goods, and vice versa for the Chinese regarding American goods.

Really? *Are you sure?

Perhaps it was a context thing, not quite what you meant in the context? *I'm not sure... Read that way to me.

 

[itfitzme]

I bet that, in the balance of things, the US dollar is the denomination of trade.

 

[AmazonTania]

US exports to China were $10.3 Billion for last December alone.

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I never said that US does purchase Renminibi from China. I only said they have to purchase Renminibi.

...

...

The United States has to purchase Renminbi in order to purchase Chinese goods, and vice versa for the Chinese regarding American goods.

Really? *Are you sure?

Perhaps it was a context thing, not quite what you meant in the context? *I'm not sure... Read that way to me.

So the only place one can purchase Reminibi from the Chinese...

You may want to think about your answer before responding.

 

[itfitzme]

...



I never said that US does purchase Renminibi from China. I only said they have to purchase Renminibi.*

...

...

The United States has to purchase Renminbi in order to purchase Chinese goods, and vice versa for the Chinese regarding American goods.

Really? *Are you sure?

Perhaps it was a context thing, not quite what you meant in the context? *I'm not sure... Read that way to me.

So the only place one can purchase Reminibi from the Chinese...

You may want to think about your answer before responding.

Yeah, the Federal Reserve and US businesses puechase them from Russian Mobsters or French Banks.

It doesn't matter if they are purchased direct from the Chinese government or from some exchange that purchased them from the Chinese Central Bank.

NOBODY HAS TO PURCHASE RENMINBI FROM ANYONE IN ORDER TO BUY GOOD FROM CHINA. *

It doesn't matter how you put it or what you meant. All possibilities are covered.

 

[AmazonTania]

Really? *Are you sure?

Perhaps it was a context thing, not quite what you meant in the context? *I'm not sure... Read that way to me.

So the only place one can purchase Reminibi from the Chinese...

You may want to think about your answer before responding.

Yeah, the Federal Reserve and US businesses puechase them from Russian Mobsters or French Banks.

It doesn't matter if they are purchased direct from the Chinese government or from some exchange that purchased them from the Chinese Central Bank.

NOBODY HAS TO PURCHASE RENMINBI FROM ANYONE IN ORDER TO BUY GOOD FROM CHINA. *

It doesn't matter how you put it or what you meant. All possibilities are covered.

Maybe I should be clear. No one (Not Americans, at least) is REQUIRED to pay for Chinese goods with Reminibi. I thought I already explained this earlier. Twice, in fact. The Chinese are perfectly willing to take US Dollars in exchange for Chinese products (for now). But the general rule of trade remains: If you want what another country produces, you need it's currency. Plain and simple.

America doesn't have to purchase a foreign currency to buy Chinese goods, or any other goods for that matter. One of the unfair advantages have owning the Reserve Currency, which will ultimately be it's downfall.

 

[zonly1]

Why r gold and silver being pilaged by massive shorts....bear sterns and jp morgan????????????????????

Econ fundamentals do not exists

 

[oldfart]

You may want to think about your answer before responding.

Posters might also want to look up Bank for International Settlements (BIS).