When China speaks, the world listens

When China speaks, the world listens
Nov 7, 2007 14:30
CANADAGUY Points: Join Date: Oct 1, 2007 Status: offline	China announced to the world today that it would be selling off some of its huge U.S. dollar holdings. The U.S. dollar has been steadily weakening over the past year and as a result China wants to lighten its investment in that currency ($1.43 trillion US). The announcement put even more pressure on the U.S. dollar today, This was a big financial news item, as countries around the world will be influenced by it, and consider selling some of their $U.S. holdings as well. In the meantime, the Canadian dollar continued to soar to record levels ($1.10 US today). Canada's dollar gets an additional boost from the country's rich natural resource reserve (oil, gas, metals).

Nov 7, 2007 14:30

CANADAGUY
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Join Date: Oct 1, 2007
Status: offline

China announced to the world today that it would be selling off some of its huge U.S. dollar holdings.

The U.S. dollar has been steadily weakening over the past year and as a result China wants to lighten its investment in that currency ($1.43 trillion US).

The announcement put even more pressure on the U.S. dollar today,

This was a big financial news item, as countries around the world will be influenced by it, and consider selling some of their $U.S. holdings as well.

In the meantime, the Canadian dollar continued to soar to record levels ($1.10 US today).
Canada's dollar gets an additional boost from the country's rich natural resource reserve (oil, gas, metals).

Nov 7, 2007 19:35

LEONARDO
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Join Date: May 21, 2007
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CANADAGUY,

I heard a saying: " when China sniffs and sneezes, the world catches a cold". This might be an overstatement. However, it does reflect the important role that China has played in the international economy to a certain extent.

Quote:
"In the meantime, the Canadian dollar continued to soar to record levels ($1.10 US today).Canada's dollar gets an additional boost from the country's rich natural resource reserve (oil, gas, metals)"

I do favor your ideas. Yesterday, the oil price hit at 98 USD per barrel. Canada benefits a lot from the soaring price of the natural resource. In theory, USA is also rich in natural resource. However, USA is a quite big consumer. Canada has less population than the States, but has more natural resource. China will also face the same problem: a very big spender. Taking a fulll consideration of both natural resource and population, Canada has a comparative advantage over China and USA.

Nov 7, 2007 22:49

CANADAGUY
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Join Date: Oct 1, 2007
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>>I heard a saying: " when China sniffs and sneezes, the world catches a cold". This might be an overstatement. However, it does reflect the important role that China has played in the international economy to a certain extent.<<

There's no question at all that in addition to its booming economy, China is now a major player in the international economy. It's already beginning to show the rest of the world how it can affect other countries' economies simply by adjusting its 'investment portfolio'.

>> Taking a fulll consideration of both natural resource and population, Canada has a comparative advantage over China and USA. <<

You got it right there! But we need to be very polite and politcally correct with our neighbour to the south, because if they ever come on really hard times, resource-wise, they will simply come into Canada and take what they need. Or start a war in an oil-rich country, or....

As long as things are going relatively well, econominally-speaking, for the U.S., we need not fear for our country or resources. But watch out if the standard of living starts to plummet in the U.S.!

Nov 8, 2007 07:01	#3
GUEST25162	Don't overrate & exaggerate the impact of China please. I don't think the above is true - yet.

Nov 18, 2007 19:03

LEONARDO
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Join Date: May 21, 2007
Status: Offline

GUEST25162 ,

Quote:
"Don't overrate & exaggerate the impact of China please. I don't think the above is true - yet. "

You seem kind of gloom with the prospect of China. The role China played in the global village is known to all villagers. I admit that China has many problems which might hinder its development. Well, generally speaking, China is experiencing a robust growth which is unmatched elsewhere.

GUEST25162,
You might have more detailed evidence to support your statement.I am willing to hear your valuable and detailed illustration. Thanks in advance!

Nov 18, 2007 23:49	#5
CANADAGUY Points: Join Date: Oct 1, 2007 Status: Offline	>>GUEST25162, You might have more detailed evidence to support your statement.I am willing to hear your valuable and detailed illustration. Thanks in advance! Leonardo, GUEST25162 is a bit of a character. They have already changed their GUEST number twice since this post. In general their posts have been on the 'negative' side with little said to encourage fellow members here.

Nov 22, 2007 22:22	#6
LEONARDO Points: Join Date: May 21, 2007 Status: Offline	Canadaguy, Thanks for your information! If the guest really has some detailed evidence of support his/her idea, his/her opinions are welcome. This is an interesting topic that worths discussing. We hope to read more profound and insightful posts. The viewpoints can be quite varied. As long as he/she can offer convincing grounds, I am willing to hear his/her views.

Dec 11, 2007 09:08	#7
GUEST52230	in fact ,i think,china has't been so strong enough to influence other countries. china have so many domistec prombles to solve,natrue enviroment,rural poor,etc.And i think,population is the most diffculty to overcome for china.

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