China Currency!

B

bobdbldr

CGN Ultra frequent flyer
Location
Nova Scotia
China just devalued their currency, which means things should be cheaper to buy from them, hopefully Canam will make them sharpen their pencils and give us great deals, with their economy shrinking a bit maybe they will even release some more sks from their extensive warehouses!
 
bobdbldr said:
China just devalued their currency, which means things should be cheaper to buy from them, hopefully Canam will make them sharpen their pencils and give us great deals, with their economy shrinking a bit maybe they will even release some more sks from their extensive warehouses!
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How will this have any bearing on foreign trade ?? Everything is sold in US dollars??

John
 
bobdbldr said:
China just devalued their currency, which means things should be cheaper to buy from them, hopefully Canam will make them sharpen their pencils and give us great deals, with their economy shrinking a bit maybe they will even release some more sks from their extensive warehouses!
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is a 2% currency reduction even worthy of a post ??????
 
johnone said:
How will this have any bearing on foreign trade ?? Everything is sold in US dollars??

John
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Exactly. The CDN dollar will continue to weaken against the USD. The exchange rate is back down to 1.31xx today and the gurus are predicting 1.35 by year's end and 1.3750 early next year. Add to this what the banks charge to exchange funds and we are looking at over $1.40 Canadian for every US buck we need less than a year from now. Our costs for everything will continue to go up. Buy now or pay more later.
 
BNN says 2% is huge and translates into more! Also our dollar being in the toilet helps sell goods internationally even when we trade in U.S. Dollars! Things from China were slowly rising in price, this helps a bit and hopefully they will work a bit harder getting their goods ( firearms and ammo etc.) to our shores!
 
China undervalues it's own dollar on purpose to ensure that the US continues to depend on it to produce it's imperial football fields of Wal-Mart crap.
They do it on purpose to make it an export market. Which is what China is. It's power is in producing dirt cheap goods and exporting them to us consumer mad North Americans.
Their low dollar becomes all the more appealing to us North Americans to spend billions more to buy everything they're selling while it's "cheaper".
It makes no difference to them in the end when they are running an almost zero overhead on production of goods using slave labour, prison labour etc to produce said materials lol
It also serves to deter any Chinese companies from importing anything bought at US currencies be it goods or parts etc
Very very crafty those Chinamen.....
 
You wait and see what a loonie will be worth on the world market if the ndp get in this fall...The thing won't be worth a pinch of loon shyte.
 
bobdbldr said:
BNN says 2% is huge and translates into more! Also our dollar being in the toilet helps sell goods internationally even when we trade in U.S. Dollars! Things from China were slowly rising in price, this helps a bit and hopefully they will work a bit harder getting their goods ( firearms and ammo etc.) to our shores!
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A weak dollar helps producers and hurts consumers. It is yet another subsidy to the few manufacturers and their employees.
 
Funny, the business networks say that it will help China with exports, as the American/Canadian, or whatever dollar will buy more Chinese currency. Things are bought and sold in USD however first translated from a countries currency, Canada sells in USD but pays out wages etc in our own currency, the USD is worth more than ours therefore we ask less in USD to cover our costs, same in China, even a small amount makes a difference! I will take it.
Travis, I would love for us to be back to buying more Canadian, as the way it is going now, with free trade etc, our country has no choice but to slowly drop the the quality/ style of life as those we now depend on for cheap goods! Mexico, China, Indoa, Pakistan etc.
If prices are not competitive and drop at least a bit from this then it is someone in the middle skimming the savings!
 
Travis Bickle said:
China undervalues it's own dollar on purpose to ensure that the US continues to depend on it to produce it's imperial football fields of Wal-Mart crap.
They do it on purpose to make it an export market. Which is what China is. It's power is in producing dirt cheap goods and exporting them to us consumer mad North Americans.
Their low dollar becomes all the more appealing to us North Americans to spend billions more to buy everything they're selling while it's "cheaper".
It makes no difference to them in the end when they are running an almost zero overhead on production of goods using slave labour, prison labour etc to produce said materials lol
It also serves to deter any Chinese companies from importing anything bought at US currencies be it goods or parts etc
Very very crafty those Chinamen.....
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They don't have their own dollar. It is Yuan btw. :)
 
johnone said:
How will this have any bearing on foreign trade ?? Everything is sold in US dollars??

John
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Their costs are in Yuan. They can make then same stuff for same number of Yuans. Hence lower number of US dollars. Thought you were a business man. Tell them to lower their cost.

The Chinese government devalued it's currency to boosts it's export. How do you boost export? By devaluing your currency aka making your stuff cheaper in USD.
 
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