Re: yuan dollar
On Aug 13, 2007, at 7:35 PM, bhandari@berkeley.edu wrote:
http://www.berkeley.edu/news/media/releases/ 2007/08/10_globalcapital.shtml
Hi Doug, I thought implied in the above report was the explanation I gave
for why US Treasury wants a faster appreciation of yuan vis a vis the
dollar. I can’t believe that the US Treasury would be exerting such pressure
or even pretending to on the behalf of American workers in declining
industries, so there must be another reason. And what could that be? An
appreciation of the yuan vis a vis the dollar would raise the dollar value of
the yuan US corporations are holding, no? US corporations seem ever
dependent on profits made abroad. Again this seems implied in Bardhan’s research.
What research? The URL refers to Chinese dollar investment in U.S.
MBS (mortgage-backed securities, not Max B. Sawicky).
What yuan balances do U.S. corps have? They have to pay local costs
in yuan, how do they accumulate the currency? How big are their
reserves?
My impression is that the Treasury is responding to Congressional
pressure, which is coming from smaller biz and worker electoral ire
over China.
Doug