June 27, 2010
I laughed when I read The Wall Street Journal’s, Is China Serious This Time About a Yuan Basket? I laughed because the Chinese are serious but not serious enough to risk the yuan fluctuating in value to the point that it becomes a burden to the people.
“A report from the Chinese Academy of Social Sciences indicated that in … 2006, the annual per capita disposable income of urban households was 11,759 yuan compared with only 3,587 yuan in rural households.” Source: China Labour Bulletin
The cost of essential goods must be kept stable. It helps that rural Chinese grow most of their food and live in collectives so there are no mortgages or property tax. The villages and houses belong to everyone and there are no deeds. However, in urban China, many pay rent or a mortgage unless they live in factory dormitories.
Whatever basket of currency China uses, even if it is the same as Singapore, there will still be a narrow band so the yuan doesn’t change value to the point that it would cause an unbearable burden to the people of China. How would you like to be sitting on a powder keg that size?
See The Urban-Rural Divide
Award winning author of Hart’s concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too.
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March 25, 2010
Regardless of what Political Correctness requires most Americans to say in public about other cultures and ethnic groups, America’s national interests (meaning Americans making money and spending more) have dominated the globe for decades clearly showing a lack of respect for other cultures.
Today, the world is on the verge of a major shift away from America’s national interests as China rewrites the rules on trade, technology, currency, climate change, etc.
The March 22, 2010, issue of Newsweek, “It’s China’s World—We’re Just living In It“, talks about those changes. Where the American dollar once ruled supreme, the Chinese yuan is appearing around the Asia-Pacific as an alternative currency.
As I pointed out about the Chinese space race, China is now the only country making major investments in space exploration and their reasons are not to earn bragging rights by putting footsteps in moon dust but to discover fresh sources of rare minerals that are quickly being depleted on the earth.
Looking for opportunities, China has become the leader in green technology.
Meanwhile, America is missing the boat as political/religious agendas rule the behavior of the ruling class who squabble over global warming, school prayer, abortion, health care, stem cell research, evolution versus creationism, etc.