Comments on: Is An Obama “Thank You Note” Owed to the Chinese? http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/ for students and teachers of Economics Wed, 23 May 2012 04:39:58 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Maren http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-8773 Maren Wed, 28 Oct 2009 01:03:48 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-8773 I think during the time that the US needs to spend so much money on their economy that they should not complain, because China helps them by buying their government bonds to pay for this. It also makes it possible that US citizens can buy Chinese products very cheap. But on the other hand there is the probelm that when the dollar's value is high that there won't be as many exports and the Chinese can supply their goods in the US at a lower price than domestic producers. And this on the other hand harms the US economy, because less US produced goods are consumed which can lead to unemployment and firms going out of business in the US. So there is an argument for both sides, if the US should or shouldn't complain about China keeping the dollar strong. I think during the time that the US needs to spend so much money on their economy that they should not complain, because China helps them by buying their government bonds to pay for this. It also makes it possible that US citizens can buy Chinese products very cheap. But on the other hand there is the probelm that when the dollar's value is high that there won't be as many exports and the Chinese can supply their goods in the US at a lower price than domestic producers. And this on the other hand harms the US economy, because less US produced goods are consumed which can lead to unemployment and firms going out of business in the US. So there is an argument for both sides, if the US should or shouldn't complain about China keeping the dollar strong.

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]]> By: Theresa http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-8703 Theresa Tue, 27 Oct 2009 01:06:03 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-8703 As stated by Catherine, though the Chinese are manipulating the markets to boost their own economy, they help to reduce to US National deficit. On the other hand they are making themselves and their markets more competative and therefore hurting american firms as they cannot keep up with the chinese low prices. As consumers buy more from china and less from the us, since it is just simply cheaper, these firms will close and unemployment will rise, which will hit the US economy back. As stated by Catherine, though the Chinese are manipulating the markets to boost their own economy, they help to reduce to US National deficit.

On the other hand they are making themselves and their markets more competative and therefore hurting american firms as they cannot keep up with the chinese low prices. As consumers buy more from china and less from the us, since it is just simply cheaper, these firms will close and unemployment will rise, which will hit the US economy back.

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]]> By: Catherine Boardman http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7714 Catherine Boardman Sat, 21 Mar 2009 06:32:24 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7714 Tom Gheitner certainly owes an apology note to the Chinese financial experts because their efforts to artificially manipulate the Yuan have greatly benefited the United States during the current period of economic instability. Though their purpose in manipulating the markets is to boost their own economy, such actions (although they do harm exports) are currently helping to reduce the U.S. national deficit by funneling American dollars back into our economy. And Barack Obama’s large economic stimulus package will certainly need to be backed by some sort of money flow into the government. However, U.S. financial experts continue to moan and complain, despite their knowledge of the assistance from Chinese actions. Yet, as we discussed in class today (yes, I was listening while I was coloring), Gheitner and others still criticize the other governments because they know that most U.S. citizens know nothing about the economy and therefore cannot comprehend the benefits of Chinese financial manipulation. I’m just anxious for economic advisors and politicians to be honest with the U.S. population. Tom Gheitner certainly owes an apology note to the Chinese financial experts because their efforts to artificially manipulate the Yuan have greatly benefited the United States during the current period of economic instability. Though their purpose in manipulating the markets is to boost their own economy, such actions (although they do harm exports) are currently helping to reduce the U.S. national deficit by funneling American dollars back into our economy. And Barack Obama’s large economic stimulus package will certainly need to be backed by some sort of money flow into the government.

However, U.S. financial experts continue to moan and complain, despite their knowledge of the assistance from Chinese actions. Yet, as we discussed in class today (yes, I was listening while I was coloring), Gheitner and others still criticize the other governments because they know that most U.S. citizens know nothing about the economy and therefore cannot comprehend the benefits of Chinese financial manipulation. I’m just anxious for economic advisors and politicians to be honest with the U.S. population.

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]]> By: Brandon Lock http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7712 Brandon Lock Sat, 21 Mar 2009 05:10:19 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7712 I enjoyed reading this post and I also agree that Gheitner should not complain and focus more on the task at hand. I think that there is a lot of truth within the proposed question of a thank you note to China. The United States Economy thrives off trade and trade with China especially. The arguments made regarding foreign trade and the appreciation and depreciation of foreign currencies coincides well with the material presented in class. I also think this completely supports the arguments for trade and that it is a good and beneficial thing contrary to opinions stating trade is bad. It is really interesting how the Chinese can manipulate the foreign currency market into depreciating their own currency. This makes perfect sense and would be a good counter argument to Americans who adamantly believe in a strong dollar. We really don't owe so much of a thank you as much as we need American recognition and support of ongoing trade with China. Also since we in the United States are already such excellent deficit spenders why not just keep spending on Chinese products. I enjoyed reading this post and I also agree that Gheitner should not complain and focus more on the task at hand. I think that there is a lot of truth within the proposed question of a thank you note to China. The United States Economy thrives off trade and trade with China especially. The arguments made regarding foreign trade and the appreciation and depreciation of foreign currencies coincides well with the material presented in class. I also think this completely supports the arguments for trade and that it is a good and beneficial thing contrary to opinions stating trade is bad.

It is really interesting how the Chinese can manipulate the foreign currency market into depreciating their own currency. This makes perfect sense and would be a good counter argument to Americans who adamantly believe in a strong dollar. We really don't owe so much of a thank you as much as we need American recognition and support of ongoing trade with China. Also since we in the United States are already such excellent deficit spenders why not just keep spending on Chinese products.

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]]> By: Steve Latter http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7707 Steve Latter Fri, 20 Mar 2009 19:41:52 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7707 Hi Viltis, I'm going to try to answer some of your questions posed in your response to this blog. Your questions are: "However, what are the long term effects of such spending? What will happen when the US begins to repay China for those securities with interest? The money will of course eventually make its way back to the US economy but how will the value of the dollar look compared to other currencies then? Couldn’t, in theory, China then be able to manipulate the value of the dollar in the foreign market if it gains control of enough US currency by deciding how much money to impound or spend?" Here is my reply: Currently, China holds less than 10% of our $11T national debt. The major long-term concern would be if the Chinese authorities suddenly changed policy and either sold the bonds on the open market or stopped buying our bonds. In both cases, this would drive up interest rates in the United States as the U.S. government would have to entice new lenders to loan the U.S. government money to finance its deficit as China would no longer be a source of funding and Americans would prefer to buy discounted U.S. treasuries from the Chinese (in lieu of Uncle Sam) as they would get the same interest payment for a lot less money. However, Ben Bernanke has expressed that this threat is much less than it appears. First of all, why would China sell its U.S. bonds at a large discount (it would have to to sell them all) and take a large loss on the sale. Secondly, Bernanke has expressed that the FED could take offsetting actions (money supply increases) to keep interest rates stable. The key to China's fate is more in the hands of the U.S. than it is in China's. As the U.S. lowers its deficit spending (it will trust me, or their will be no more USA!) in the next 4-8 years, China will no longer have the opportunity to return our own US dollars to us in the form of loans. They will be forced to use those U.S. dollars back in the USA by buying more of our products, investing in businesses on our soil, or help fund our U.S. businesses via loans or stock purchases. Trade is trade......all US dollars spent on imports circle back around to the US economy. Hi Viltis,

I'm going to try to answer some of your questions posed in your response to this blog.

Your questions are:

"However, what are the long term effects of such spending? What will happen when the US begins to repay China for those securities with interest? The money will of course eventually make its way back to the US economy but how will the value of the dollar look compared to other currencies then? Couldn’t, in theory, China then be able to manipulate the value of the dollar in the foreign market if it gains control of enough US currency by deciding how much money to impound or spend?"

Here is my reply:

Currently, China holds less than 10% of our $11T national debt. The major long-term concern would be if the Chinese authorities suddenly changed policy and either sold the bonds on the open market or stopped buying our bonds. In both cases, this would drive up interest rates in the United States as the U.S. government would have to entice new lenders to loan the U.S. government money to finance its deficit as China would no longer be a source of funding and Americans would prefer to buy discounted U.S. treasuries from the Chinese (in lieu of Uncle Sam) as they would get the same interest payment for a lot less money. However, Ben Bernanke has expressed that this threat is much less than it appears. First of all, why would China sell its U.S. bonds at a large discount (it would have to to sell them all) and take a large loss on the sale. Secondly, Bernanke has expressed that the FED could take offsetting actions (money supply increases) to keep interest rates stable.

The key to China's fate is more in the hands of the U.S. than it is in China's. As the U.S. lowers its deficit spending (it will trust me, or their will be no more USA!) in the next 4-8 years, China will no longer have the opportunity to return our own US dollars to us in the form of loans. They will be forced to use those U.S. dollars back in the USA by buying more of our products, investing in businesses on our soil, or help fund our U.S. businesses via loans or stock purchases.

Trade is trade……all US dollars spent on imports circle back around to the US economy.

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]]> By: Drew Stegmaier http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7705 Drew Stegmaier Fri, 20 Mar 2009 11:32:46 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7705 I think that for now, Gheitner should keep quiet and then voice his concerns about the depreciating Yuan, if that is best. He is the U.S. Treasury Secretary, so he should always do what is best for the U.S. If keeping quiet is the best thing to do now, then it needs to be done. But, in the future if speaking out against what China is doing is necessary, then that is what Gheitner should do. I do not think there is a definite way to decide what he should do. If at all possible, somehow someone should figure out what works best, allowing the Yuan to depreciate while helping to reduce interest rates, increase lending, and facilitating funding for deficit spending while simultaneously taking a hit in the area of exports. If someone can figure this out, then that gives a solution. However, I have doubts that it can be done. So, in the meantime we wait for the decision makers to do what they do and then afterwards the media will either criticize them if they mess up but not give much credit for doing the right thing. I think that for now, Gheitner should keep quiet and then voice his concerns about the depreciating Yuan, if that is best. He is the U.S. Treasury Secretary, so he should always do what is best for the U.S. If keeping quiet is the best thing to do now, then it needs to be done. But, in the future if speaking out against what China is doing is necessary, then that is what Gheitner should do. I do not think there is a definite way to decide what he should do. If at all possible, somehow someone should figure out what works best, allowing the Yuan to depreciate while helping to reduce interest rates, increase lending, and facilitating funding for deficit spending while simultaneously taking a hit in the area of exports. If someone can figure this out, then that gives a solution. However, I have doubts that it can be done. So, in the meantime we wait for the decision makers to do what they do and then afterwards the media will either criticize them if they mess up but not give much credit for doing the right thing.

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]]> By: Colin Jennings http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7704 Colin Jennings Fri, 20 Mar 2009 11:13:18 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7704 I do feel that were owe China a "thank you note." Hannah correctly pointed out that China has its own interests in mind when buying United States government securities, but I feel that a sense of gratitude is still owed to the Chinese government. While the US government is no doubt a safest institution from which to buy bonds, the Chinese government has numerous other options of where to use that money (Other countries governmental securities or private industry). It seems to me that the United States federal government is in far more desperate need of money, than the Chinese are desperate to find a place to put their money. In such a budget deficit time, we should be ever so thankful toward any establishment willing to buy our securities. As for Treasury Secretary Tim Gheitner, he is doing exactly what one should expect, public relations with the American people. He tells them the type of message they want to hear, even if it is not based in fact. Although his complaining banter may disillusion some citizens, I find it relatively harmless because nothing he says is going to make the Chinese less willing to buy United States bonds. Your blog post clearly states the global nature of the economy of both the United States and China. Many people fail to understand the great connectedness of our two economies. We seem to be getting a great deal out of it all (as is China). We not only get their products but they also lend us back our own money to spend. What more could we ask for? And China gets American products and later will rep the rewards of their prudent investment through United States securities. It is good to read your writings again Mr. Latter, your five month hiatus from blog posting was certainly hard for me to survive. I do feel that were owe China a "thank you note." Hannah correctly pointed out that China has its own interests in mind when buying United States government securities, but I feel that a sense of gratitude is still owed to the Chinese government. While the US government is no doubt a safest institution from which to buy bonds, the Chinese government has numerous other options of where to use that money (Other countries governmental securities or private industry). It seems to me that the United States federal government is in far more desperate need of money, than the Chinese are desperate to find a place to put their money. In such a budget deficit time, we should be ever so thankful toward any establishment willing to buy our securities. As for Treasury Secretary Tim Gheitner, he is doing exactly what one should expect, public relations with the American people. He tells them the type of message they want to hear, even if it is not based in fact. Although his complaining banter may disillusion some citizens, I find it relatively harmless because nothing he says is going to make the Chinese less willing to buy United States bonds.

Your blog post clearly states the global nature of the economy of both the United States and China. Many people fail to understand the great connectedness of our two economies. We seem to be getting a great deal out of it all (as is China). We not only get their products but they also lend us back our own money to spend. What more could we ask for? And China gets American products and later will rep the rewards of their prudent investment through United States securities.

It is good to read your writings again Mr. Latter, your five month hiatus from blog posting was certainly hard for me to survive.

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]]> By: Matt Richards http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7703 Matt Richards Fri, 20 Mar 2009 10:57:25 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7703 China it seems, and I do not know a more professional way to put it, to be a crafty nation. I had not really heard much about their buying up on U.S. dollars and feeding more Yuan into the market. Although their exports rise because of the depreciation of their dollars, how important are imports in their economy. The depreciation must weaken their imports. Although imports do not help a country's GDP, they do bring in many products and goods that are sold in the economy and benefit society. At least, this is very true in the U.S., though how much China relies on imports I do not know. This all seems in line with China for I have heard of China and their trade in technology with the U.S. I have heard of China stealing U.S. technology in that they import U.S. products, and ignore copyrights and patents, and steal technology such as computer chips. We lose trade in that they now have the technology only we could supply them. I am not sure the extent or truth of this, but I have heard China has done this with many dealings in trade, Though, on the topic of their buying up U.S. dollars and sending them back to us as the dollar appreciates, I do believe this a good thing for now. This can help as we seek to lower the budget and to find revenue. Although, in the long term this does need to be addressed. China it seems, and I do not know a more professional way to put it, to be a crafty nation. I had not really heard much about their buying up on U.S. dollars and feeding more Yuan into the market. Although their exports rise because of the depreciation of their dollars, how important are imports in their economy. The depreciation must weaken their imports. Although imports do not help a country's GDP, they do bring in many products and goods that are sold in the economy and benefit society. At least, this is very true in the U.S., though how much China relies on imports I do not know. This all seems in line with China for I have heard of China and their trade in technology with the U.S. I have heard of China stealing U.S. technology in that they import U.S. products, and ignore copyrights and patents, and steal technology such as computer chips. We lose trade in that they now have the technology only we could supply them. I am not sure the extent or truth of this, but I have heard China has done this with many dealings in trade,

Though, on the topic of their buying up U.S. dollars and sending them back to us as the dollar appreciates, I do believe this a good thing for now. This can help as we seek to lower the budget and to find revenue. Although, in the long term this does need to be addressed.

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]]> By: Josh Brown http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7700 Josh Brown Fri, 20 Mar 2009 09:04:40 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7700 I found it interesting that China is buying US dollars, while supplying Yuan to the foreign currency market. They want they dollar to depreciate so that they can increase there exports thus increase their GDP. At first glance one might think that the dollar appreciating would be bad for US because it decreases our exports. However international trade is always good for both countries. The US might lose exports but the money is spent right back into the US economy and gives the US government a good opportunity to increase government spending and decrease interest rates; both of which are beneficial to a recovering economy. I agree with international trade and I agree with you that we should not by complaining. Later on down the road when our economy gets on its feet we may have a problem but in the meantime lets enjoy this help. I think we are complaining about China just as another way to keep passing the blame. Yet they are indeed helping us so we should thank them. The only worry I have is for the decreasing US exports in the future and I do not like the thought that China can actually manipulate or government spending. I found it interesting that China is buying US dollars, while supplying Yuan to the foreign currency market. They want they dollar to depreciate so that they can increase there exports thus increase their GDP. At first glance one might think that the dollar appreciating would be bad for US because it decreases our exports. However international trade is always good for both countries. The US might lose exports but the money is spent right back into the US economy and gives the US government a good opportunity to increase government spending and decrease interest rates; both of which are beneficial to a recovering economy.

I agree with international trade and I agree with you that we should not by complaining. Later on down the road when our economy gets on its feet we may have a problem but in the meantime lets enjoy this help. I think we are complaining about China just as another way to keep passing the blame. Yet they are indeed helping us so we should thank them. The only worry I have is for the decreasing US exports in the future and I do not like the thought that China can actually manipulate or government spending.

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]]> By: Viltis Palubinskas http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7696 Viltis Palubinskas Fri, 20 Mar 2009 06:29:25 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7696 I have heard about how China artificially weakens its currency and invests in US treasury securities, and though I have wondered about it, I am curious to learn the full implications of such policies. I initially thought about how the undervalued yuan is unfair to US exporters and immediately began to mourn the trade deficit, thinking that it has a negative effect on US GDP. However, I remembered our class lectures that frequently promote the idea that international trade is a win-win situation and realized that though an undervalued yuan may increase the trade deficit, I realized the those US dollars are being returned to our economy when Chinese authorities invest in US treasury securities. This investment allows the US to increase its deficit spending and lower interest rates, which increases Government spending and creates more favorable conditions for investment spending as well. Both of these should offset any negative effects of the trade deficit on GDP. However, what are the long term effects of such spending? What will happen when the US begins to repay China for those securities with interest? The money will of course eventually make its way back to the US economy but how will the value of the dollar look compared to other currencies then? Couldn’t, in theory, China then be able to manipulate the value of the dollar in the foreign market if it gains control of enough US currency by deciding how much money to impound or spend? Another effect that concerns me is how will the compositions of the US’s GDP change? Overall GDP may look stable, but China is taking money out of the private sector when it chooses not to spend US currency on US products, and puts it into the hands of the government when it buys government securities. In the short term this may not seem like a big deal, but slowly the deficit spending will increase how big a portion government spending will be a part of GDP. This would lessen the power of the consumer and the consumer’s dollar votes, unless most of the money was spent as transfer payments, and it could lead to a “bigger government” where the government becomes more active in the daily lives of its citizens and could possibly result in policies that have tendencies toward socialism. In conclusion, I still support international trade, but the jury is still out on what China is doing with US currency. I have heard about how China artificially weakens its currency and invests in US treasury securities, and though I have wondered about it, I am curious to learn the full implications of such policies. I initially thought about how the undervalued yuan is unfair to US exporters and immediately began to mourn the trade deficit, thinking that it has a negative effect on US GDP. However, I remembered our class lectures that frequently promote the idea that international trade is a win-win situation and realized that though an undervalued yuan may increase the trade deficit, I realized the those US dollars are being returned to our economy when Chinese authorities invest in US treasury securities. This investment allows the US to increase its deficit spending and lower interest rates, which increases Government spending and creates more favorable conditions for investment spending as well. Both of these should offset any negative effects of the trade deficit on GDP.

However, what are the long term effects of such spending? What will happen when the US begins to repay China for those securities with interest? The money will of course eventually make its way back to the US economy but how will the value of the dollar look compared to other currencies then? Couldn’t, in theory, China then be able to manipulate the value of the dollar in the foreign market if it gains control of enough US currency by deciding how much money to impound or spend?

Another effect that concerns me is how will the compositions of the US’s GDP change? Overall GDP may look stable, but China is taking money out of the private sector when it chooses not to spend US currency on US products, and puts it into the hands of the government when it buys government securities. In the short term this may not seem like a big deal, but slowly the deficit spending will increase how big a portion government spending will be a part of GDP. This would lessen the power of the consumer and the consumer’s dollar votes, unless most of the money was spent as transfer payments, and it could lead to a “bigger government” where the government becomes more active in the daily lives of its citizens and could possibly result in policies that have tendencies toward socialism.

In conclusion, I still support international trade, but the jury is still out on what China is doing with US currency.

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]]> By: Steve Latter http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7686 Steve Latter Thu, 19 Mar 2009 03:11:10 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7686 Hi Tyler, I like your observation of why doesn't the U.S. try to weaken the dollar like China intentionally weakens its yuan. Well, truth be told that the country "thinks" a stronger dollar is better because of the obvious adjective "strong". Most economist see the advantages of a weaker dollar (higher exports) to be greater than the disadvantages (inflation due to higher import prices). One of our former Treasury secretaries once said that a weaker dollar is good for America and he was lambasted by the press. No American president will ever support a "weak" anything...it just sounds bad! Hi Tyler,

I like your observation of why doesn't the U.S. try to weaken the dollar like China intentionally weakens its yuan.

Well, truth be told that the country "thinks" a stronger dollar is better because of the obvious adjective "strong". Most economist see the advantages of a weaker dollar (higher exports) to be greater than the disadvantages (inflation due to higher import prices).

One of our former Treasury secretaries once said that a weaker dollar is good for America and he was lambasted by the press. No American president will ever support a "weak" anything…it just sounds bad!

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]]> By: Tyler Meintel http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7684 Tyler Meintel Thu, 19 Mar 2009 00:06:03 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7684 I think that it is interesting how China can depreciate their currency by investing in United States Bonds. I also find it interesting that even though China is exporting more than the United States they are still helping our economy out. However, if this really helps out the United States economy why would Tim Gheitner complain sbout what China is doing. I feel that what China is doing makes since so instead of complaining the United States should try to do it to. If depreciating the Yuan really helps the Chinese economy get an edge over the United State's then why do we not try to deprieciate the dollar. Is it because a lot of people prefer that the government stay out of trying to help the economy? It seems to me that this is another aspect of competition except that this is governments competing not companies. I think that it is interesting how China can depreciate their currency by investing in United States Bonds. I also find it interesting that even though China is exporting more than the United States they are still helping our economy out. However, if this really helps out the United States economy why would Tim Gheitner complain sbout what China is doing. I feel that what China is doing makes since so instead of complaining the United States should try to do it to.

If depreciating the Yuan really helps the Chinese economy get an edge over the United State's then why do we not try to deprieciate the dollar. Is it because a lot of people prefer that the government stay out of trying to help the economy? It seems to me that this is another aspect of competition except that this is governments competing not companies.

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]]> By: Mike Fladlien http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7662 Mike Fladlien Mon, 16 Mar 2009 18:18:02 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7662 I read a quote from a Chinese bond buyer that said essentially said China has no choice but to buy our debt. What else can they do with US dollars? They can save them, buy our goods, or buy our debt. I read a quote from a Chinese bond buyer that said essentially said China has no choice but to buy our debt. What else can they do with US dollars? They can save them, buy our goods, or buy our debt.

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]]> By: Alex Boedtker http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7592 Alex Boedtker Fri, 13 Mar 2009 17:31:18 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7592 I do not think that the USA owes an apology to China since they chose to depreciate the Yuan. However the USA should learn to appreiate the Chinese help instead of complain about since China is the reason that the American economy is functioning right now. I do not think that the USA owes an apology to China since they chose to depreciate the Yuan. However the USA should learn to appreiate the Chinese help instead of complain about since China is the reason that the American economy is functioning right now.

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]]> By: Myoung-Jin Kim http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/comment-page-1/#comment-7582 Myoung-Jin Kim Fri, 13 Mar 2009 09:44:36 +0000 http://welkerswikinomics.com/blog/2009/03/11/is-an-obama-thank-you-note-owed-to-the-chinese/#comment-7582 I agree with Lloyd. China has purposely kept the yuan cheap, which helps the US bailout. The Treasury Secretary Tim Gheitner should have nothing to complain about. I’m not saying that US owes an apology to China, since keeping Chinese currency low also benefit China, but Tim Gheitner should definitely stop complaining. I agree with Lloyd. China has purposely kept the yuan cheap, which helps the US bailout. The Treasury Secretary Tim Gheitner should have nothing to complain about. I’m not saying that US owes an apology to China, since keeping Chinese currency low also benefit China, but Tim Gheitner should definitely stop complaining.

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