Washington Post, March 27, 2010 on page A8: Chief executive of Lenovo said: "When Yuan is appreciated,folks are led to believe they have more money and buy more to boost consumption sector of the economy. So it is good. (sic)
Commerce Minister thinks otherwise:"China's exporters could be hurt if the Chinese currency,RMB or Yuan strengthens because it would make Chinese products more expensive overseas. We have to think about our employment and stability." Two views for reader's thoughts! What about American consumers to buy Chinese products? High prices for jobless folks to pay? Good or not really?
Well,the foreign exchange market is determined by the law of supply and demand but there may be gaps for consideration since Economics is an inexact science.(knowledge)
Health Care Reform may or may not be endorsed by folks in USA. Debatable at best!?
"Parade",March 28, 2010 on page 6:
Does America own too much? Critics of government spending are voicing alarm about the growing national debt. A study from the National Bureau of Economic Research found that public debt levels become perilous when they reach 90% of GDP. By that point, interest rates may be higher as investors demand greater returns on federal securities, while masive interest payments detract from key government functions. The interest can get so burdensome that the nation cannot afford to repair its highways or educate its children or provide other essential services," says Isabel Sawhill of the Brookings Institution. "You become a much weasker nations." According to the CBO, US public debt could approach 100% of GDP by 2020, given current spending levels and obligations for entitlement programs like Medicare, Medicaid, and Social Security. Assumptions are to be validated.
What are your thoughts? It is a matter of perception and reception as I sent my past blogs. We shall find out when the time comes. The evidence remains to be seen.
Francis Shieh a.k.a. Xie Shihao stimulating thoughts for Sino-American Economics.
The fact is China is holding the largest amount of US debt as known.
Saturday, March 27, 2010 and 10.46 a.m.