Comments on: China: Trade of the Century http://erwin.co/2009/12/09/china-trade-of-the-century/ thoroughly chinafied american business geek in shanghai Thu, 02 Feb 2012 01:12:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Linnea Angus http://erwin.co/2009/12/09/china-trade-of-the-century/comment-page-1/#comment-178089 Linnea Angus Sat, 22 Jan 2011 16:40:43 +0000 http://erwin.co/2009/12/09/china-trade-of-the-century/#comment-178089 <p>Hi there, just became aware of your blog through Google, and found that it is really informative. I am gonna watch out for brussels. I will appreciate if you continue this in future. Many people will be benefited from your writing. Cheers!</p> Hi there, just became aware of your blog through Google, and found that it is really informative. I am gonna watch out for brussels. I will appreciate if you continue this in future. Many people will be benefited from your writing. Cheers!

]]> By: ryan http://erwin.co/2009/12/09/china-trade-of-the-century/comment-page-1/#comment-177700 ryan Wed, 30 Dec 2009 20:00:50 +0000 http://erwin.co/2009/12/09/china-trade-of-the-century/#comment-177700 <p><a href="#comment-177580" rel="nofollow">@How to Import From China</a> Great question. I've been thinking a lot about this too.</p> <p>I think the dollar <em>will</em> devalue across the board another 30% against all other currencies, but while doing so the USD should be careful to avoid destroying it's reserve currency status. Devaluing will effectively be a pay cut to all workers in the USA, which will make the country much more competitive in the global marketplace, both against the developed west and japan, and emerging market competitors.</p> <p>Today, the USD has far better liquidity than gold - it's accepted nearly everywhere, and in some location where it's not accepted, the USD is easy to convert into any other currency. You can't say that about any other currency, and especially not the RMB.</p> <p>However, it's the store of value portion of the USD that is a bit more problematic. Short term, the USD needs to devalue to keep making the USA more and more competitive. If the USD both devalues, and continues to encourage immigration, particularly of talented white collar workers from China, India and Russia, I think the USA has a very bright future.</p> <p>Even the changes that you are seeing right now in the US I believe are difficult, but necessary steps to readjust the economy. Unfortunately, the central planned economy here in China isn't taking those steps, and while currently posting good GDP numbers, I think it's far LESS sustainable than the US model.</p> @How to Import From China Great question. I’ve been thinking a lot about this too.

I think the dollar will devalue across the board another 30% against all other currencies, but while doing so the USD should be careful to avoid destroying it’s reserve currency status. Devaluing will effectively be a pay cut to all workers in the USA, which will make the country much more competitive in the global marketplace, both against the developed west and japan, and emerging market competitors.

Today, the USD has far better liquidity than gold – it’s accepted nearly everywhere, and in some location where it’s not accepted, the USD is easy to convert into any other currency. You can’t say that about any other currency, and especially not the RMB.

However, it’s the store of value portion of the USD that is a bit more problematic. Short term, the USD needs to devalue to keep making the USA more and more competitive. If the USD both devalues, and continues to encourage immigration, particularly of talented white collar workers from China, India and Russia, I think the USA has a very bright future.

Even the changes that you are seeing right now in the US I believe are difficult, but necessary steps to readjust the economy. Unfortunately, the central planned economy here in China isn’t taking those steps, and while currently posting good GDP numbers, I think it’s far LESS sustainable than the US model.

]]> By: How to Import From China http://erwin.co/2009/12/09/china-trade-of-the-century/comment-page-1/#comment-177580 How to Import From China Fri, 18 Dec 2009 09:34:32 +0000 http://erwin.co/2009/12/09/china-trade-of-the-century/#comment-177580 <p>I just wonder what would happen if the dollar is devalued across the board (say 30% against all currencies)?</p> I just wonder what would happen if the dollar is devalued across the board (say 30% against all currencies)?

]]> By: How To Import From China http://erwin.co/2009/12/09/china-trade-of-the-century/comment-page-1/#comment-177512 How To Import From China Thu, 10 Dec 2009 03:23:36 +0000 http://erwin.co/2009/12/09/china-trade-of-the-century/#comment-177512 <p>While it is a fact that companies can save a lot by importing from China. They must be vigilant in the inspection of the products so as not to repeat the contaminated heparin incident.</p> While it is a fact that companies can save a lot by importing from China. They must be vigilant in the inspection of the products so as not to repeat the contaminated heparin incident.

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