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A comment on Reasons to Open a Chinese Bank Account. Parent comment

Re:Reasons to Open a Chinese Bank Account by reedlaw on Friday January 14, 2011 @11:11AM (#2103992)
Ditto for the dollar. You're taking a bet on the Federal Reserve's competency in regulating the US economy.
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Re:Reasons to Open a Chinese Bank Account by Vivtek on Friday January 14, 2011 @11:26AM (#2104046)
Yeah, and given the results of the past decade I'm inclined to trust the Communists... Not that they're actually communists; they're just a really big national corporation, imho.
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Re:Reasons to Open a Chinese Bank Account by yummyfajitas on Friday January 14, 2011 @12:00PM (#2104230)
I'm not inclined to trust the communists more than the Fed, but I am inclined not to put all my eggs into one basket.
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Re:Reasons to Open a Chinese Bank Account by borism on Friday January 14, 2011 @02:26PM (#2105029)
The above discussion makes little sense.

By maintaining USD peg China has no independent monetary policy - it's monetary policy is directly influenced by Federal Reserve.

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Re:Reasons to Open a Chinese Bank Account by cynicalkane on Friday January 14, 2011 @02:45PM (#2105105)
China, not the Fed, has ultimate control over their monetary policy. They can always change their monetary policy and probably will have to. Which is what the discussion is in fact about, if you read the original article.
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Re:Reasons to Open a Chinese Bank Account by borism on Friday January 14, 2011 @03:01PM (#2105189)
China, not the Fed, has ultimate control over their monetary policy.

sure, but since 1994 they haven't really exercised that ultimate control:

http://en.wikipedia.org/wiki/File:1_RMB_to_US_dollar.svg

and despite all promises to the contrary last year, they are still not exercising it to any substantial extent:

http://www.google.com/finance?q=NYSE:CYB

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Re:Reasons to Open a Chinese Bank Account by yummyfajitas on Friday January 14, 2011 @03:12PM (#2105229)
If the Chinese keep up their peg, holding RMB is equivalent to holding dollars.

If they fail to maintain the peg, the RMB will most likely rise. Most US consumers are already exposed to the downside of this risk - they have expenses which will rise if the RMB goes up (e.g., all the goods they purchase which are made in China).

Holding RMB is a hedge against this.

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Re:Reasons to Open a Chinese Bank Account by borism on Friday January 14, 2011 @03:44PM (#2105365)
Tell me more about it :)

I myself have a Long Straddle on CYB since some time last year, betting that it moves in either direction.

Let's just say hoping to make guaranteed profit cause chinese promised it isn't such a great strategy :)

They have 1 week more to move though, just in time for Paramount Leader's visit to D.C.

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Re:Reasons to Open a Chinese Bank Account by sad_hacker on Friday January 14, 2011 @11:47AM (#2104162)
Indeed, more like a well-runned corporation with 1.3 billion workers.
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Re:Reasons to Open a Chinese Bank Account by poutine on Friday January 14, 2011 @02:33PM (#2105066)
Well run? You've obviously never been to China.
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Re:Reasons to Open a Chinese Bank Account by brianobush on Friday January 14, 2011 @02:58PM (#2105172)
Why would you need to visit China to have an opinion that could be arrived at by looking at financials - a common practice in measuring success. Just look at a portfolio of large Chinese companies - they are doing well, thus I would also hypothesize that they are well-run companies.
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Re:Reasons to Open a Chinese Bank Account by garply on Friday January 14, 2011 @03:27PM (#2105289)
The numerical data to which you have access is not necessarily accurate. Corruption, bribery, fabricated numerical data are par for the course here.

He was talking about China as a country and as an economy. If you come and visit, it is immediately obvious that there are problems.

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Re:Reasons to Open a Chinese Bank Account by pyrhho on Friday January 14, 2011 @06:07PM (#2105794)
Just because there are problems does not necessarily mean that (as a whole) it is being run poorly.
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Re:Reasons to Open a Chinese Bank Account by mturmon on Saturday January 15, 2011 @04:26PM (#2107865)
Chinese firms are riding a huge wave of growth driven by wage differentials. In this macro context, it's easy to make a lot of money with poor management.
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Re:Reasons to Open a Chinese Bank Account by ericd on Friday January 14, 2011 @07:12PM (#2105944)
*trillion
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Re:Reasons to Open a Chinese Bank Account by uxp on Friday January 14, 2011 @07:55PM (#2106074)
You might want to look that statistic up before you try and correct someone again.
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Re:Reasons to Open a Chinese Bank Account by ericd on Saturday January 15, 2011 @02:19AM (#2106635)
Oops, I misread that as cash on hand, but looking at it again, I don't know how I could have mistaken it. Definitely not 1.3 trillion people...
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