Golden Triangle Drug Traffic Arbitrage?

[James A. Donald]

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On 23 Mar 2005 at 20:19, Anonymous wrote:
> If the yuan is actually cheaper than it should be 
> because of being pegged to the dollar, there's a much 
> easier way to take advantage of the arbitrage 
> opportunity: simply buy goods in China and sell them 
> in America. And guess what, thousands of Chinese 
> export companies do just that, making money off the 
> economic downhill slide that China has erected 
> spanning the Pacific.  This effectively forces Chinese 
> workers to be paid less than they are worth, 
> decreasing their savings and acting as an economic 
> stimulus for China as a whole.

Your economics is entirely sound, but I disagree with 
you on one minor question of fact.  I doubt the yuan is 
cheaper than it should be.  Seems to me that the 
fundamental reason why chinese are working cheap and 
providing us with their excellent goods in exchange for 
our rather dubious and shaky dollars so abundantly
printed by the Bush administration, is that the chinese
banking system is even more dubious and shaky. Chinese
prefer to stash their wealth in America, rather than in
China. 

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         James A. Donald
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