Source Pravda.Ru

China did USA an ill turn?

China's trading partners have welcomed its long-awaited currency revaluation, but analysts believe it is bad news for the U.S. dollar and exchequer bonds, says Pravda.ru.

Reuters called China's decision a modest move which is unlikely to end diplomatic tensions over a range of issues from booming exports to Beijing's military rise.

Federal Reserve Chairman Alan Greenspan said Thursday's revaluation was a "good start", and U.S. Sen. Charles Schumer - among those pushing to punish China with stiff tariffs if it did not revalue - called it a "baby step," adds Reuters.

As a practical matter, the 2 percent rise in the value of the yuan is far too small to make a dent in the $160 billion trade deficit the United States runs with China, believes The Boston Globe. "Symbolically, this is a very important move," The Globe quoted Bill Cheney, chief economist at John Hancock Financial Services, as saying. Like other analysts, Cheney believes yesterday's baby step will be the first of a series of revaluations that, over time, could increase the value of the yuan by a significant amount.

Meanwhile, crude futures rose Friday in an early flurry of Asian activity after China's decision to abandon its currency peg to the U.S. dollar, a move that will likely make dollar-denominated oil prices cheaper for China, the world's second-largest consumer of crude, reports the AP.

Several years ago, a prominent Indonesian businessman who now resides in Canada, insisted on meeting me in a back room of one of Jakarta's posh restaurants. An avid reader of mine, he 'had something urgent to tell me', after finding out that our paths were going to be crossing in this destroyed and hopelessly polluted Indonesian capital.

Capitalism reduced Indonesian cities to infested carcases

Several years ago, a prominent Indonesian businessman who now resides in Canada, insisted on meeting me in a back room of one of Jakarta's posh restaurants. An avid reader of mine, he 'had something urgent to tell me', after finding out that our paths were going to be crossing in this destroyed and hopelessly polluted Indonesian capital.

Capitalism reduced Indonesian cities to infested carcases
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