Revaluing the yuan helps no one
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what is happening to singapore is basically shift in structural unemployment and this figure is unlikely to change unless there is a major shift in Singapore economy and demographyOriginally posted by Salman:if we tolerate under valuation of the yuan, then don't cry when you have unemployed people or Singaporeans working for less than $1000 per month.
Singapore has to move away from competiting on cost and efficency, and the last thing you want to be whinning about is the under value Yuan or Riggit. Low cost manufacturering is over for Singapore, you got to move on.
Instead of asking can singaporeans afford a lower salary, you should be talking about what singaporeans can do to compete.
lastly Singapore is known for its free trade policy, not protectionism. so dont expect the govenment to provide you with iron rice bowl. -
Not all unemployment is structural.
The main reason to unemployment in the first place because the cost is so cheap that many MNCs have shifted operations to China from this region. The cost disparity is what caused any structural also.
Make no mistake about it, a large part of this cost disparity is due to an under valued yuan. -
China is the mkt in this era that is fuel many jobs in singapore and the region. US and europe is more or less stagnant or worse not to mention japan.
If its not china, it will be india or russia. Many companies here depends on china for business, from ST group, creative, apple, motorola, maxtor, seagate, education companies, food, shipping, OSim, logistics, machinery, transports and on their dependant subcons. They all invest in china in one way and staff benefit from it for as long as they can. Many singapore GOV link companies are also there from construction to banking. Its dead end if many singapore companies want to grow organic here. These companies will probably need only 10% of the staff if they were to stay here in singapore mkt.
If china growth machinery die, the world will be in for a major recession. And singapore will be hit real hard. Infact many logistic companies here are employing more because of growth in china. If not, Where is the mkt.
for every company that is there, they have a similar operation here to keep staff employ to produce and support the operation there.
Vietnam, combodia, india, are the subcons, that are supporting all in terms of much lower tier cost of manufacturing.
The worst if there are economic boom in this region and singapore is being left out by thinking inward and many who stay will be hit by economic starvations. -
Make no mistake about it, Singapore and USA can NEVER (I REPEAT, NEVER) compete on cost with developing country like China, India, Vietnam, Indonesia etc.Originally posted by Salman:Not all unemployment is structural.
The main reason to unemployment in the first place because the cost is so cheap that many MNCs have shifted operations to China from this region. The cost disparity is what caused any structural also.
Make no mistake about it, a large part of this cost disparity is due to an under valued yuan.
MNCs shifting operation from Singapore to China is simply a natural progression. Why does a company need to set up a plant in Singapore, when majority of their products are going into China? Welfare for Singaporeans? Welfare to the sea and air freight companies? -
You are dead wrong. Labour cost is only one component of total cost.
If you view labour cost as the only factor, then we would not be able to compete anything at all and that is clearly not the case.
The truth is, we can compete in many areas had there not been a grossly undervalued Yuan.
If undervaluation doesn't matter, why bother to under value in the first place you dummy? -
You have not answered my question, why do you think yuan is undervalued and by how much do you think it should appreciate???Originally posted by Salman:You are dead wrong. Labour cost is only one component of total cost.
If you view labour cost as the only factor, then we would not be able to compete anything at all and that is clearly not the case.
The truth is, we can compete in many areas had there not been a grossly undervalued Yuan.
If undervaluation doesn't matter, why bother to under value in the first place you dummy? -
You deny the undervaluation of the yuan?
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don't answer a question with another question? pls answer directly, why do you think yuan is underdevalued and by how much?Originally posted by Salman:You deny the undervaluation of the yuan? -
yes labour is not the only cost, but it is the biggest cost component in labour intensive manufacturing. me dead wrong? i think you are brain dead.Originally posted by Salman:You are dead wrong. Labour cost is only one component of total cost.
If you view labour cost as the only factor, then we would not be able to compete anything at all and that is clearly not the case.
The truth is, we can compete in many areas had there not been a grossly undervalued Yuan.
If undervaluation doesn't matter, why bother to under value in the first place you dummy?
You keep whinning about yuan being devalued, can you please tell us
a) how much should the Yuan be value at?
b) When did China (DE)value their currency, since they are PEG to the US$.
(PLEASE ANSWER THESE SIMPLE QUESTIONS) -
If the yuan isn't under valued, why not float it? Why do you think they need to peg it? Very logical question right?Originally posted by sgdiehard:don't answer a question with another question? pls answer directly, why do you think yuan is underdevalued and by how much? -
All industries need labour. If labour is really so cheap in China that they can sweep all labour intensive industries, why bother to peg the yuan at all?Originally posted by Gazelle:yes labour is not the only cost, but it is the biggest cost component in labour intensive manufacturing. me dead wrong? i think you are brain dead.
You keep whinning about yuan being devalued, can you please tell us
a) how much should the Yuan be value at?
b) When did China (DE)value their currency, since they are PEG to the US$.
(PLEASE ANSWER THESE SIMPLE QUESTIONS)
You wanna play dumb like sgdiehard and says the yuan isn't pegged? -
Originally posted by Salman:If the yuan isn't under valued, why not float it? Why do you think they need to peg it? Very logical question right?Originally posted by Salman:Again a one sided view from you that would not help.
Aren't we talking about revaluation? The Chinese govt can certainly revaluate w/o free float.
A revaluation would be fair to all and also improve domestic purchasing power and economy for China. Thats a win win situation for all. -
Do you know the difference between revalauation and undervaluation?
I think you better re-read the thread again. -
I dont think you know Yuan is Peg against the dollar either. or else you wont be saying that China gov DEvalued the Yuan against the dollar.Originally posted by Salman:All industries need labour. If labour is really so cheap in China that they can sweep all labour intensive industries, why bother to peg the yuan at all?
You wanna play dumb like sgdiehard and says the yuan isn't pegged? -
Oh I see, now you pretend that the yuan isn't pegged to the USD. Good for you.
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Originally posted by Salman:Oh I see, now you pretend that the yuan isn't pegged to the USD. Good for you.Originally posted by Gazelle:I dont think you know Yuan is Peg against the dollar either. or else you wont be saying that China gov DEvalued the Yuan against the dollar.
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It is clear that Boy in Blue does not know what he is talking about.
Yuan to dollar peg does not mean it is not devalued.
The whole point is, the Yuan is pegged in a devalued position to the USD.
Why is it that people who don't know basic economics want to discuss on monetary policy?
I suggest all of you go back to your A level econs text book and reread it becfore your next post. -
don't answer a question with another question, logical or not?Originally posted by Salman:If the yuan isn't under valued, why not float it? Why do you think they need to peg it? Very logical question right?
If you don't have anything concrete to say, just go play with yourself. I have no time. -
You are the one who do not know basic economics!!Originally posted by Salman:It is clear that Boy in Blue does not know what he is talking about.
Yuan to dollar peg does not mean it is not devalued.
The whole point is, the Yuan is pegged in a devalued position to the USD.
Why is it that people who don't know basic economics want to discuss on monetary policy?
I suggest all of you go back to your A level econs text book and reread it becfore your next post.
why do you think yuan is devalued and how by how much is it devalued??
answering a question with another question surely will not pass PSLE, have you done that??? -
Its clear that everybody here thinks that you have limited knowledge of what you are saying, plus you inability to explain what exactly you are talking about.Originally posted by Salman:It is clear that Boy in Blue does not know what he is talking about.
Yuan to dollar peg does not mean it is not devalued.
The whole point is, the Yuan is pegged in a devalued position to the USD.
Why is it that people who don't know basic economics want to discuss on monetary policy?
I suggest all of you go back to your A level econs text book and reread it becfore your next post.
A level econs? I think you have to read more than that. What we are discussing here is about US foreign policy, its about China being the next super power, its about OIL and Energy in Middle East, Africa, Russia, its about North Korea and Taiwan.
FYI, YUAN is no longer peg aagainst the USD since mid of this year. It is now peg against basket of currencies. -
Ah, so yuan was indeed pegged to USD but now pegged to an basket of currencies that can we assume includes USD?Originally posted by Gazelle:FYI, YUAN is no longer peg aagainst the USD since mid of this year. It is now peg against basket of currencies.
Good for you. You get getting smarter. Unfortunately, some people don't even know that. -
Only you do not know. It is ok if you don't know others are smart, but do you know that you are not so smart??Originally posted by Salman:Ah, so yuan was indeed pegged to USD but now pegged to an basket of currencies that can we assume includes USD?
Good for you. You get getting smarter. Unfortunately, some people don't even know that.
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I am just trying make you look "smart" thats all. Hope you know what I meant.Originally posted by Salman:Ah, so yuan was indeed pegged to USD but now pegged to an basket of currencies that can we assume includes USD?
Good for you. You get getting smarter. Unfortunately, some people don't even know that. -
You just made yourself and the rest of the pro china gang look stupid.
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nobody is pro china here, we are just discussing the facts about US and China's foreign policy. With regards to Yuan, you can cry till the cows come how, the job that leave Singapore will never come back for a simple reason.Originally posted by Salman:You just made yourself and the rest of the pro china gang look stupid.
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You want to do business in China? You better invest in China. This is the simple principle that is applied to all countries around the world.