11-29-2004, 05:20 AM
I'e been thinking about it for a while. Over here in NZ we only get the occasional article, like the following:
http://www.nzherald.co.nz/index.cfm?c_id...ID=8500730
What is the view from the U.S. side?
Is the U.S. dollar backed by a physical commodity, or government guaranteed? (My bad memory tells me that it is no longer gold-backed, and isn't guaranteed). If not, what is to stop the government from deflating the dollar by printing off money to pay off some debt?
If lenders started requiring higher return, what effect would that have on the U.S. economy?
Is the U.S. going to be forced into more free trade deals? (To help the economy and to get on par with where China is heading)
China is welcoming a world first one with New Zealand (Irony: ex-communist China wants free trade deal with NZ whereas Capitalist U.S. doesn't want one at all).
If shareprice measures performance of a company and its management, can the currency (or TWI) be used to measure the performance of a country and its governance?
NZ dollar has almost doubled in value vs the US dollar due in large part to our focus on primary production which China is providing strong demand for. Will this pull resources away from value added industries and/or harm our (NZs) long term economic position if(when?) Chinese demand is "satisfied"/"levels off"/"settles down"/"turns toward value added sectors"?
Is the growth of China increasing the pie, or taking a portion of a fixed pie? (I.E. does increased supply from China trigger increased demand, once export monies filter through the economy)
http://www.nzherald.co.nz/index.cfm?c_id...ID=8500730
What is the view from the U.S. side?
Is the U.S. dollar backed by a physical commodity, or government guaranteed? (My bad memory tells me that it is no longer gold-backed, and isn't guaranteed). If not, what is to stop the government from deflating the dollar by printing off money to pay off some debt?
If lenders started requiring higher return, what effect would that have on the U.S. economy?
Is the U.S. going to be forced into more free trade deals? (To help the economy and to get on par with where China is heading)
China is welcoming a world first one with New Zealand (Irony: ex-communist China wants free trade deal with NZ whereas Capitalist U.S. doesn't want one at all).
If shareprice measures performance of a company and its management, can the currency (or TWI) be used to measure the performance of a country and its governance?
NZ dollar has almost doubled in value vs the US dollar due in large part to our focus on primary production which China is providing strong demand for. Will this pull resources away from value added industries and/or harm our (NZs) long term economic position if(when?) Chinese demand is "satisfied"/"levels off"/"settles down"/"turns toward value added sectors"?
Is the growth of China increasing the pie, or taking a portion of a fixed pie? (I.E. does increased supply from China trigger increased demand, once export monies filter through the economy)