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NOYB wrote:
China June trade surplus swells five-fold
Monday July 11, 8:43 AM EDT


BEIJING (Reuters) - China's trade surplus for June swelled five-fold from
a
year earlier as exports grew much faster than imports, offering more
ammunition for foreign critics who argue that Beijing should let the yuan
rise in value.

The June surplus grew to $9.68 billion, exceeding forecasts of $8.0
billion
and towering above the $1.8 billion surplus recorded for June 2004.

"The very large trade surplus will give the U.S. and Europe more excuse
to
put pressure on China to revalue the yuan," said Toshikatsu Kimura,
greater
China economist with Daiwa Securities in Shanghai.

"China needs to import more goods and services to avoid a trade war, but
it
will be very difficult to import more if it doesn't want to change its
macroeconomic policy," he said.

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When the trade war begins (and it will), will China attack Taiwan as a
message/warning to the US that it can't be pushed around? Or will they
cave
on the yuan, and finally let it float?


I'm shocked that you are even concerned, NOYB.
That mega-billions per month trade surplus pililng up for the Chinese
is the only thing that is keeping your party's administration in power
in Washington DC. As fast as they can hand money out to Haliburton and
other special interests, (blowing past any previous record for
government spending by miles, and miles, and miles and piling up a debt
that our great grandkids will still be paying off), that's just how
fast the Chinese are buying the "paper" that
makes it possible. Pray they keep stepping up to the plate, and don't
decide to cash in all those US GOVT T bills all at once 'cause if they
do we'll all be speaking Mandarin.

What will they cash them in for? US dollars? The yuan is already grossly
undervalued compared to the dollar. If China dumped T-bills, the dollar
would plummet even further relative to the yuan. China would the world's
largest holder of worthless (at least to the Chinese) money. At that point,
a US dollar wouldn't buy a piece of fake plastic dog **** from China. What
do you suppose that would do to China's economy?