Giving currency to China's inflation threat

The last thing Australia needs is for China's exchange rate to rise. They will buy more and will pay less (See Giving currency to China's inflation threat, July 13).

I wholly agree, Lino (See 'A Chinese currency threat', Conversation contribution, July 13). Australia benefits massively from China's illogical currency stance. China pays more to buy our resources and we pay less when we buy their manufactured goods (See Giving currency to China's inflation threat, July 13).

In response to Lino (See 'A Chinese currency threat', Conversation contribution, July 13): while our importers will not be happy with a stronger Chinese currency, why wouldn't our exporters be over the moon with an effective devaluation of our currency? (See Giving currency to China's inflation threat, July 13.)

Well Karen, I would rather be in China's position than US or EU – who are no great examples of how to run an economy, are they? (See Giving currency to China's inflation threat, July 13.) No, the Chinese will patiently continue on their 'middle way', resisting all political pressure, whilst the West burns its nest.

Brian Hill is right (See 'I'd rather be China', Conversation contribution, July 13).
It's always a bit precious for Westerners to give the Chinese advice on almost any subject. The Chinese have a history of 5,000 years of continuous civilisation, and a culture that values learning from the past. The West could do worse.
In almost any circumstance the Chinese can tell you in detail a parallel circumstance to a current one, including the dynasty during which it occurred.
On the economic front, the Chinese are still seething about the 'criminal' behaviour of the Western bankers who created the Global Financial Crisis, and America's devaluation of China's massive US dollar holdings by way of just running the printing presses. China, like the US and every other sovereign country, will be guided by only one criterion – its own national interest.

Richard B (See 'We could do worse than follow China', Conversation contribution, July 13), it is not in China's best interests to keep its currency low. This means they sell their exports for less than they are worth and pay more for imports. They are diminishing their own standard of living for the benefit of foreigners (See Giving currency to China's inflation threat, July 13).

Wage increases, price controls, bank collateral requirements and higher interest rates are the weapons the communist government of China has been using to fight inflation (add in a few show trials of corrupt officials to temporarily soothe the uneducated masses). (See Giving currency to China’s inflation threat, July 13). It is all failing, and currency re-evaluation is inevitable. For China-worshippers like Brian, the question is what happens when Chinese-made goods are more expensive than other Asian, African, South/Latin American or Eastern European-made goods? The answer of course is the end of the Chinese bubble. Mass unemployment in a country with 1.2 billion mouths to feed and no social safety net. The communist Chinese government knows this, and they are scared. And as Australians, we should be too.

I think I'd be happy with 6% inflation if we could get 10% real growth. I say real growth because growth in China is vastly different to growth in the West. We employ and have say 1% of GDP playing with an ETS or carbon tax which builds nothing except disincentives whilst the Chinese would build a hundred solar power stations (See Giving currency to China's inflation threat, July 13).
The Chinese have made one mega problem and that is massive price inflation in real estate. This alone is the downfall of all the countries that have problems. This massive store of paper profits in houses that few in China can afford will eventually crumble. How they deal with that will be the real test. And it seems that we don't want to talk about it here because we have the disease in chronic form.