In a message dated 5/11/2006 10:51:39 P.M. Eastern Daylight Time,
[EMAIL PROTECTED] writes:
was saying that pegging the RMB to the dollar doesn't resolve the weakness
of the dollar.
The RMB is not pegged to resolved the "weakness" of the dollar but to avoid
its unwelcome strengthening. You've got things backwards here.By the way ,
the Chinese have a crawling peg, ie, the RMB revalues daily but a pace set by
the monetary authorities.
I'll stop here because the rest of your statement is metaphysic not economic
reasoning, based on gloom-doom, ill wishing reasoning. I can easily see that
any comment different from conceding that a global financial crisis is
already here and that the world revolution will follow right after, won't
satisfy
you.
I am not particularly interested in Chicken Little analysis.You can ill-wish
the system intensively but that won't bring it down. It is more challenging
and productive to understand the mechanisms and actual workings of the system
, especially if you want to change it.
CS
