There is still a big buyer convinced to do great bargains by accumulating dollars. Someone who continues to buy Treasury Bonds in dollars and even more the "structured products" with loans indollars. This buyer, which supports the
(By Maurizio Blondet, www.effedieffe.com)
According to the U.S. Treasury,
The behavior seems even more strange by taking into account that
Inside American politics, the voices calling for protectionist measures against the flood of Chinese goods would become stronger and listened. Maintaining the current exchange rate between the dollar and Renminbi-all in favor of
To ensure social peace, the Chinese government has passed a law on employment contracts which will enter into force by January: for the first time, this law defines the rights of workers regarding overtime, pensions, layoffs, and even trade unions. If it will not remain unheeded, this set of rules will cause an increase in the Chinese labor cost of 20-30%. Already now, different
In short, evidence shows that
(Source: Max Fraad Wolff, «Sino silence in subprime swamp», Asia Times, December 14th 2007).