Unlike America, China Is Embracing Bold Reform

by James Gruber on October 19, 2013

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{ 3 comments… read them below or add one }

Jim October 25, 2013 at 5:51 am

Well, sort of. Japan’s jump into QE likely pushed China to react. The urge to revalue the yuan and internationalize it was pretty blase until then. China and its commentators are going to find it much more turbulent to internationalize a currency than a few reforms. Creating and regulating deep financial markets is key, but it relies on just the kind of rule of law that the princelings and Party are criticizing. I would guess that China stands where the US did one hundred years ago, with the real possibility of a Depression up ahead as liquidity dries up for all but the state enterprises.

Merle Holden October 21, 2013 at 3:06 pm

I live in South Africa and this article struck a cord. A few years ago under pressure from the unions the Reserve bank decided to undervalue the rand. However this could only be achieved at vast cost to the Treasury as given the inflation target domestic interest rates in the face of very low international rates could not be lower. Sadly exports failed to be stimulated given low international demand and manufacturers pocketed the windfall gains. Now the shenanigans in America are causing us great distress as the rand plummets one day and rises the next.

S October 20, 2013 at 8:32 am

with a government that seem more interested in them selves rather than their people, the USA is sliding fast. the Feds supposed dual mandate is one that it can not ever meet as it does not have the tools to create jobs or create a job friendly environment, only congress does. ( and they are doing the exact opposite ) even mr 0 is being more of a divisive hinderance to job creation rather than being helpful.

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