Author Topic: Chinese Financial situation.  (Read 4248 times)

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JBM

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Chinese Financial situation.
« on: January 07, 2016, 11:28 pm »
With the Chinese have to put a second freeze on their stock markets in a few days and subsequent devaluations mean a reduction in the prices of their products to other countries ?

If the answer is yes, will they and the USA using Chinese components and even complete machines be adjusting the USA prices to the rest of the world.

Your thoughts on this one folks. ;) :)  Jerry.

Sven

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Re: Chinese Financial situation.
« Reply #1 on: January 08, 2016, 01:02 am »
Probably not, they are charging in US Dollars, so the price stays the same. US dollars users won't notice any price change.
What happens is when the Chinese charge in US dollars, and their dollar drops way down. Doesn't matter they still have full US dollar value.
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JBM

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Re: Chinese Financial situation.
« Reply #2 on: January 08, 2016, 04:02 pm »
Hi Sven,

This is what Iam trying to point out in layman's language. ;)  Jerry.

Sven

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Re: Chinese Financial situation.
« Reply #3 on: January 08, 2016, 06:13 pm »
Didn't know the Chinese bought US finished import products ::)  Why buy, when they can copy?  :-\

Same thing you mentioned is happening here in Canada right now. Ca $ was on par with the US dollar a couple years ago. Canadian shoppers would flood across the border each weekend to buy goods on sale at the shopping malls they couldn't find at CA malls or the same item cost 25% more due to import taxes etc.
Right now the CA $ ie worth about 65 cents to the US $.  So we now have to pay 35-45% more for any item being purchased from the US. Canadians are no longer flocking over the border to the US. Funny thing now the same item sold in the US hasn't changed price in Canada, yet. It's a good time for US folks to buy items from Canada or come up here to visit.  With the CA dollar drop, min. working wage value here, now is lower than min. wage in the US. That sucks, if I had a min wage job now, its less than what I was earning back in the 90's and it has a lot less purchasing power. Many Canadian on-line suppliers have been charging in US dollars for the past year, mainly due to most items they sell where imported from the US and paid for in US dollars.  Exactly what I do as most of my supplies come from outside Canada and are paid in US dollars.  Think Australia is having the same problems with their devalued dollar.
Good thing I have some US currency on hand, there have been some wonderful used metal detector deals popping up. There was one for $300 Canadian, could have bought for $200US, resold it on the US market for $400 all day long. Too bad it sold by the time I spotted the listing.

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