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CHINA - Up in arms (pg. 7)
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| Lews |
| quote: | Originally posted by Lira
What!? No, this makes the books I buy a lot more expensive :(
So that's why Stephen Colbert mentioned something along these lines some time ago, and I was surprised to hear him say "Brazil" at all. The funny thing is, this has become something of a problem recently because they clearly overshot it and they're now trying to bring the Real up.
By the way, do you guys actually pronounce it as if it were an English word, or do you really say hay-OW? |
Yeah, it s you for imports, but that's also part of the point. It makes you more likely to buy local things, keeping money in your own system, and strengthening local merchants.
Wait, you lost me :p, what word is pronounced hay-OW? If we're talking about the Real, I pronounce it ree-al, though I don't know if that's correct :p |
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| pkcRAISTLIN |
| how does purchsing foreign debt keep one's own currency "down"? |
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| Taipan |
| quote: | Originally posted by Lews
Yeah, Stephen's stupid, we get it.
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As long as that's established I'm happy.
Interesting thing about Shenzhen is the city is no more than 40 years old. Pretty incredible to think in such a short amount of time it's competing with some of the worlds largest cities. |
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| Lira |
| quote: | Originally posted by Lews
Yeah, it s you for imports, but that's also part of the point. It makes you more likely to buy local things, keeping money in your own system, and strengthening local merchants. |
No likey :mad:
| quote: | Originally posted by Lews
If we're talking about the Real, I pronounce it ree-al, though I don't know if that's correct :p |
Yeah, that's the one we pronounce "hay-ow", but I've always thought this pronunciation would be too weird for you guys... and it seems I'm right :p |
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| Lews |
| quote: | Originally posted by pkcRAISTLIN
how does purchsing foreign debt keep one's own currency "down"? |
Wait, did I make a mistake? I've been thinking about humanitarian interventions for about 18 hours now, so brain isn't thinking about economics too well :p
From my understanding of Brazil, though, this is what happened:
Foreign investors spent dollars for Real, the Real went up, Brazil had lots of dollars. Brazil spent excess inflow-dollars on US debt, got rid of excess dollars, the Real went down. Yeah? Or am I wrong about something here? |
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| Lews |
| quote: | Originally posted by Taipan
Interesting thing about Shenzhen is the city is no more than 40 years old. Pretty incredible to think in such a short amount of time it's competing with some of the worlds largest cities. |
What are you using to say it's competing with some of the world's largest cities?
Not that this is conclusive of anything, lol, but its GDP is less than Detroit's. |
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| Lews |
| quote: | Originally posted by Lira
No likey :mad: |
Protectionist policies :p
| quote: | Originally posted by Lira
Yeah, that's the one we pronounce "hay-ow", but I've always thought this pronunciation would be too weird for you guys... and it seems I'm right :p |
Yep, a bit too weird :p
I'm assuming it's common knowledge among people who study Brazil, though, lol. I'm one of the odd people who doesn't study Brazil, but knows a decent amount. Stuck in the middle between knowledge and ignorance :p
Damn I used ":p" a lot in that post. |
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| Taipan |
| quote: | Originally posted by Lews
What are you using to say it's competing with some of the world's largest cities?
Not that this is conclusive of anything, lol, but its GDP is less than Detroit's. |
I'm using dyks_on_jay comment. Is that not a credible source? |
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| pkcRAISTLIN |
| quote: | Originally posted by Lews
Wait, did I make a mistake? I've been thinking about humanitarian interventions for about 18 hours now, so brain isn't thinking about economics too well :p
From my understanding of Brazil, though, this is what happened:
Foreign investors spent dollars for Real, the Real went up, Brazil had lots of dollars. Brazil spent excess inflow-dollars on US debt, got rid of excess dollars, the Real went down. Yeah? Or am I wrong about something here? |
I honestly don’t know, and it was an honest question coz I didn’t know :p
I’ve never heard of things happening like this, except where a government has more money because it has printed it (naturally reducing the value of its unit of currency). I am not sure though whether flows of capital across borders as you say has such an impact on the exchange rate. It really might! Go find me some sources to read, jews! ;) |
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| Lews |
| quote: | Originally posted by pkcRAISTLIN
I honestly don’t know, and it was an honest question coz I didn’t know :p
I’ve never heard of things happening like this, except where a government has more money because it has printed it (naturally reducing the value of its unit of currency). I am not sure though whether flows of capital across borders as you say has such an impact on the exchange rate. It really might! Go find me some sources to read, jews! ;) |
Oh, okay, I thought I had made a dumb mistake and you were questioning me :p
Here's a couple sources, but this isn't a topic I know a ton about, obviously, lol:
http://www.adbi.org/discussion-pape...stic.economies/
http://personalpages.manchester.ac....capital2_pv.pdf |
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| Lews |
| quote: | Originally posted by Taipan
I'm using dyks_on_jay comment. Is that not a credible source? |
He said there's a lot of rich people there, not that it's competing with some of the world's largest cities or that China is a threat to the U.S. |
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| pkcRAISTLIN |
| quote: |
Capital inflows tend to appreciate nominal and real exchange rates. In a floating exchange rate regime, foreign portfolio inflows directly affect the demand for domestic currency assets, leading to an appreciation in the nominal exchange rate. |
thanks lews, i didn't know this :) |
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