It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

I need help understanding the Chinese Yuan and our U.S. Dollar

page: 1
1

log in

join
share:

posted on Jan, 18 2011 @ 12:34 PM
link   
Hey everyone,
Im somewhat new to this website and I know there are a LOT of smart and intelligent people that can explain this to me, Im confused with this story, It's about the Chinese Yuan and the U.S. Dollar, this was a breaking story so I went to the converter to understand a little better only to confuse myself more. lol. What does this mean for us, is this bad for us?

please be kind in your response, I will cry on the dime at even the smallest insult


Here is the story




and the converter.






posted on Jan, 18 2011 @ 12:39 PM
link   
welcome on ats.

short version: the chinese will get even more dollares through this action.
As far as I know China is the biggest owner of dollars already. They own so many, that if they ll sell most of it in a short period of the time the dollar value would drop faster than a freefalling building.

I might add: so far it was not possible to buy Yuan's outside of china, and inside china it is illegal to change dollar to yuan in places other than the official banks. (illegal but possible, you even got a better rate at the shady bookies).
edit on 18-1-2011 by svetlana84 because: added



posted on Jan, 18 2011 @ 12:41 PM
link   
Should I get rid of my dollars in favor of my country's currency?
edit on 18-1-2011 by PoorFool because: spelling



posted on Jan, 18 2011 @ 12:42 PM
link   
It means for every dollar, its worth 6.58 yuan.

That means the Yuan is worth .658 cents per dollar.





Oops read it wrong........... just divide 1 dollar by 6.58 and that = .15 cents....
edit on 18-1-2011 by 11PB11 because: read wrong



posted on Jan, 18 2011 @ 12:46 PM
link   
Poorfool: do whatever you might do, best is probably not to lay all eggs in one nest, split in dollares, yuan, euros and commodities to be on the safe side.


And another thought: isn't it ironic that the Money with the communist leader on it becomes the strongest value, while the capitalist greenbuck looses its value ?



posted on Jan, 18 2011 @ 12:48 PM
link   
Oh I see, I'm getting it now lol, if you could of seen my dumbfounded face when I was staring at the screen reading this, I was ashamed of myself lmao.

I have a feeling this isn't good though, just yesterday the Chinese president said he wants a global currency, why do I get the feeling this is involved in that somehow.

And thank you for the welcome to ATS, I love this site!!

Thank you guys so much for explaining it.



posted on Jan, 18 2011 @ 12:50 PM
link   
If you ever find out the answer to your question, Obama and Geithner would like to know. The FED is just perpetuating things at this point. Except that injecting cash causing inflation in China was a good blow. Problem is that Corporate America worships the Chinese. Fiat currency is a joke and will always be. It will never crash, just lose and get converted.



posted on Jan, 18 2011 @ 12:53 PM
link   
reply to post by 11PB11
 


You left out the fact that it is "Artificially" held at that level by the Chinese Government hence the big brew ha ha on the international scene....



posted on Jan, 18 2011 @ 01:26 PM
link   
reply to post by hapablab
 


China makes their currency "low" so that Chinese people cannot afford US Goods (because it takes nearly 7 Yuan to make a US Dollar.. most Chinese are paid so poorly it would take a lot of saving to buy a good in US Dollars)

This means US companies cannot export much to China

But it makes Chinese Goods very, very cheap.. so we buy their crap by the ton while they buy none of ours..

Thus, it's unfair currency manipulation due to the trade surplus the Yuan should be extensively higher.

It also has a lot to do with wages in China.. it's ok to have a high currency if the wages of the people matched the value (like the Yen in Japan which is usually around 100yen to a Dollar)

China's average income per person is $4,400 (8,100 Yuans) USD if the Yuan were higher, they'd make more, thus afford more.

Japan as a comparison is $29,000 USD (3,700,000 Yen) Thus they can afford more US Goods.

yay economics is fun



posted on Jan, 19 2011 @ 09:39 AM
link   
Thank you all for replying, I learned a lot from here more then I had in economics class (chicago public schools) if that helps.
Its definitely opening my eyes, and I'm wondering what will happen to this country, it feels like we are selling out.



posted on Mar, 15 2011 @ 02:06 AM
link   
Your avatar sig thing has inspired me to get some sort of winner merchandise. I dont really want sheen's face on it, but that winner line is gold.




top topics



 
1

log in

join