Comments on: Asian countries earn massive surpluses and keep their currencies down http://www.johnredwoodsdiary.com/2007/07/14/asia-earns-massive-surpluses-and-keeps-their-currencies-down/ Conservative Party Member of Parliament for Wokingham Sat, 11 Oct 2008 09:43:07 +0000 http://wordpress.org/?v=2.6.2 By: Steven_L http://www.johnredwoodsdiary.com/2007/07/14/asia-earns-massive-surpluses-and-keeps-their-currencies-down/#comment-4002 Steven_L Sun, 15 Jul 2007 20:59:59 +0000 http://www.johnredwoodsdiary.com/?p=363#comment-4002 So who decides what currency is pegged to what then? I've heard noises from the US saying that China's currency is undervalued, but isn't it pegged to the dollar? How would this revaluation work then? So who decides what currency is pegged to what then? I’ve heard noises from the US saying that China’s currency is undervalued, but isn’t it pegged to the dollar? How would this revaluation work then?

]]> By: Marek http://www.johnredwoodsdiary.com/2007/07/14/asia-earns-massive-surpluses-and-keeps-their-currencies-down/#comment-3985 Marek Sat, 14 Jul 2007 22:28:58 +0000 http://www.johnredwoodsdiary.com/?p=363#comment-3985 It's not fair to blame the Asians for doing what the West wants. As you well know it is the Americans who say one thing in public and another in private. The Americans still control the world economy and they think that it is in their interests to keep the price of their imports low. Surely you are smarter than you make out? Reply: The Americans do not control the world economy. The world economy is a delicate balance between the power of the debtor nations , led by the US, and the creditor nations, now led by China but supplemented by Japan, the Arab oil states and India. The US now favours a lower dollar to price its exports back into world markets, and has been encouraging China to allow a revaluation of her currency for some time. It’s not fair to blame the Asians for doing what the West wants. As you well know it is the Americans who say one thing in public and another in private. The Americans still control the world economy and they think that it is in their interests to keep the price of their imports low.

Surely you are smarter than you make out?

Reply: The Americans do not control the world economy. The world economy is a delicate balance between the power of the debtor nations , led by the US, and the creditor nations, now led by China but supplemented by Japan, the Arab oil states and India. The US now favours a lower dollar to price its exports back into world markets, and has been encouraging China to allow a revaluation of her currency for some time.

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