Relevant and even prescient commentary on news, politics and the economy.

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Context for trade deficit

…trillion yuan. Assuming companies have kept a moderate debt ratio averaging less than 50 percent, their capital investments now exceed 35 trillion yuan. And profits of 1.6 trillion yuan versus…

Morici and US trade deficits (China and oil)

…in Chinese industrial policies and a departure from maintaining an undervalued yuan to spur industrial development. … The United States has engaged in high level talks with China since negotiations…

Finally, the Big Event: China Revalues

…markets stop putting pressure on the yuan to appreciate, which would happen if this slight change in the exchange rate is enough to make the yuan less attractive to investors…

Exporting Gold Bugs to China

…… Art Laffer argues that a stable yuan linked to the dollar has promoted strong economic growth at low inflation for the U.S., China, and the rest of the world…

Following up on Yuan Post I am following up on the Yuan post because Anne is raising several good points and also some new information for me. First, my primary…

Weak Dollar

…97 (2003=100) to almost 104 in 2007, a gain of about 7%, or one third of the Yuan appreciation. Moreover, after the Yuan quit appreciating the price of US imports…

The US economy is in a funk

…deficit is down only about $20 billion. Although China has permitted the yuan to fall by 17% since July 2005, it has increased purchases of dollars with yuan to $640…