WHY AMERICA'S ECONOMY FELL OFF THE CLIFF

WHY AMERICA 'S ECONOMY FELL OFF THE CLIFF

  John Smith started the day early having set his alarm clock
  JAPAN > for 6 am.
  While his coffeepot

  was perking, he shaved with his
  electric razor

  He put on a
  dress shirt
  LANKA>,

  designer jeans

  and
  tennis shoes
  KOREA>
  After cooking his breakfast in his new
  electric skillet

  he sat down with his
  calculator

  to see how much he could spend today. After setting his
  watch

  to the radio

  he got in his car
  GERMANY >
  filled it with GAS
  Saudi Arabia >
  and continued his search
  for a good paying AMERICAN JOB.
  At the end of yet another discouraging
  and fruitless day
  checking his
  Computer
  ,
  John decided to relax for a while.
  He put on his sandals
  ,
  poured himself a glass of
  wine

  and turned on his
  TV
  ,
  and then wondered why he can't
  find a good paying job
  in AMERICA
  AND NOW HE'S HOPING HE CAN GET HELP FROM A PRESIDENT MADE IN KENYA
   

China & Deflated Yuan---Who brought the Global Bust

China is a source of unfair competition & blackmails the world with an artificially low pegged Yuan

When the downturn triggered globally and all developed countries started facing a severe beating in their gdp, revenue and ballooning deficits,

China has unfairly gained by deflating its currency at other countries expense of growth by making chinese products very cheaper compared to any product on earth.

china being an export oriented manufactuting economy has very carefully and tactfully managed to deflate its currency and at the same time not let inflation bother its growth and also amassed huge reserves. developed countries feel that china has achieved enough growth all these years and has almost overtaken germany as the 3rd largest economy


.. chinese govt is also smarter to understand this early enough and had once appreciated its yuan to a certain extent 3 yrs before... but we still feel taht is not at all sufficient, its yuan value when pegged against other currencies does not reflect its real growth, power and reserves.

Even after yuan appreciates, chinese govt will continue to provide other kind of subsidies and measures to keep up pace with the exports. so yuan appreciation shud not hurt them much.