9 ms·

Ditto for the dollar. You're taking a bet on the Federal Reserve's competency in regulating the US economy.

• Vivtek 16y ago
  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.
  • sad_hacker 16y ago
    Indeed, more like a well-runned corporation with 1.3 billion workers.
    • poutine 16y ago
      Well run? You've obviously never been to China.
      • brianobush 16y ago
        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.
        • garply 16y ago
          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.
          • pyrhho 16y ago
            Just because there are problems does not necessarily mean that (as a whole) it is being run poorly.
        • geekinthecorner 16y ago
          Slave labor is cheap, of course they do well.
        • mturmon 16y ago
          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.
    • ericd 16y ago
      *trillion
      • uxp 16y ago
        You might want to look that statistic up before you try and correct someone again.
        • ericd 16y ago
          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...
  • yummyfajitas 16y ago
    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.
    • borism 16y ago
      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.
      • cynicalkane 16y ago
        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.
        • borism 16y ago
          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 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 http://www.google.com/finance?q=NYSE:CYB
          • yummyfajitas 16y ago
            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.
            • borism 16y ago
• deleted 16y ago
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