our economy; greed, debt, inflation, deflation, page-2

Nice post Club Sharer.

I'm sure you already know this, but the one problem for us in terms of producing clothes etc is that China has pegged their currency to the USD making their products cheap. If they had a truly floating currency it would be about 3 times higher making their products more expensive and less attractive for us to buy.

If Australia were to peg our currency to the USD at 0.5 I suspect there would be complaints from our trading partners, but China seems to be able to get away with it.

Its interesting that the Premier of China said he was concerned about the US protectism a little while ago. Its rather hyprocritical that he should say that when their currency is pegged and is essentially protecting their export base.

I've always had the feeling that since I started buying Chinese goods way back in the early 2000's that we are shooting ourselves in the foot. But how do we break this cycle?