Chinese Currency
The Chinese currency is pegged to the
US Dollar. How does that work? If it's so good, why don't all countries
peg their currencies to the US dollar?
Which way would the Chinese currency go, if allowed
to float? Rise against dollar, by how much? How does this endanger Chinese
state banks and loans?
Chinese save 45% of their income
Growth in fixed asset spendig 43%. Inflation bubble
% chance?
40-50% of loans non-performing
Gresham's Law - bad money drives out good. I haven't
heard this used in this currency situation. Why not? Is there any meaning
to be twisted out of it in this case?
Seems clear that Chinese wages will increase and the
US dollar will go down.
How long does it take for equilibrium to be established?
What are lag times? Equations first, estimates of variables second, answers/estimates
third.
US Chinese Flows
