Saturday, July 23, 2005

Going Against The General Wisdom

I, as a common man on the street, am going against the common wisdom, which herald the Chinese move of allowing their currency to float as a good thing. While the perception may seem that it is a good thing for investors: and this particular group of people are always looking for the next good thing, I am convinced this is bad news. Yes, I am aware of how this would help exports from China to the US, by making Chinese goods more expensive and our exports cheaper, but the question: How can making goods more expensive for Americans, be good for America?

This recent move reminds me of fools gold, where the objective is to pull the wool over one's eyes such that they believe they are getting something for nothing.

It's a bad idea for people to believe this good news!

The real question therefore is: How can a country do something for the total benefit of others and NOT benefit even more from 'said action?'

To believe this is good news would be to believe there was NO selfishness on the part of the Chinese. That is very hard to believe, even for one moment...

China may very well have reasons to allow their currency to float BUT to assume this flotattion is for the benefit of others and not the Chinese is,, well, foolish.


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