Weaker Dollar, Stronger Yuan May Hurt The United States And Help China In The Long Run!

I’m no expert in economic matters, but I just want to use my own personal logic to make sense of a few things that are currently happening.  People are seeing that the Dollar is weakening as we speak, and the Yuan is growing stronger as we speak.  Some people say weaker Dollar is a good thing because export will become more profitable.  Furthermore, when export becomes profitable, it also drives up the manufacturing sector at home.  That’s the theory for some people, but I feel that it’s way more complicated than this.

Since the United States isn’t a world manufacture hub — China is holding this title — the United States’ exports won’t matter as much unless the United States becomes the world manufacture hub.  Sure, with weaker Dollar, the United States’ exports will become more competitive than before.  The question is, will a little gain in competitiveness in exports spur the manufacturing sector at home?  Meanwhile, weaker Dollar will make the United States’ imports a lot more expensive.

I think the United States currently imports a lot more than exports.  The United States’ import is at $2.25 trillion and the export is at $1.45 trillion for the year of 2016, according to Wikipedia.  If the United States’ exports continue to slack even with the weak Dollar and the imports continue to grow, the United States could face an even stronger trade deficit.  For an example, manufacturer companies in the United States may have to import more expensive materials from the outside to manufacture products at home for selling across the world and at home.  This may not make the products at home cheaper for homegrown consumers.  Furthermore, this will increase the trade deficit in manufacturing sector if not enough products within the United States get to export to balance out the import costs.

Weak Dollar will increase less buying power for the Americans who go abroad for vacation, business, and so forth.  Weak Dollar can make purchases of products from foreign companies through online websites or offline imports more expensive for the American consumers.  For an example, I could be buying a music plugin from an online website which belongs to a French company, and with a weak Dollar, I could be paying more for this software.

I guess good things and bad things do exist even when the Dollar is weak or strong.  Nonetheless, the most interesting question is can the United States fare better when the Dollar is weaker or stronger.  In my opinion, weaker Dollar can help spur export a bit, but if the United States’ exports don’t carry the whole United States’ overall, long-term economy, then the weaker Dollar will be a very bad thing!

What about China?  If the United States enters a trade war against China, China can increase import tariff costs for the products from the United States.  This could hurt the United States’ export market because weaker Dollar would be neutralized by this move from China.  Furthermore, China can also buy up weak Dollar on the cheap to make Yuan stronger if this would serve China’s agenda.  Of course, stronger Yuan for China could make China’s exports look expensive.  Still, from what I’ve heard, China is trying to spur demands at home to create a bigger home consumer market so China won’t be relying on too much from the export market.  If this is the case, then cheap Dollar would be beneficial for China in a big way!

Stronger Yuan would allow Chinese who are going abroad to get more bang for the buck.  Meanwhile, Chinese imports would become cheaper, and so China won’t have to spend so much money to import stuff.  As China’s export market isn’t doing so bad and the imports get cheaper, stronger Yuan allows China to continue to reform her consumption market.  Foreign companies would love to enter China’s bigger homegrown consumption market because China has 1.4 billion headcounts and growing.  As China becomes an ever more important factor for foreign companies due to the size of Chinese population and market, China can begin to dictate tastes, styles, fashions, and so forth worldwide.  Chinese culture will become ever more influential if Chinese market becomes the most important market in the world.

With a weaker Dollar and stronger Yuan, entering a trade war against China might be very bad for the United States!  China can sanction the United States’ companies, entities, and so much more to crash the United States economy.  Of course, a trade war would be bad for China too, because the United States’ imports from China do matter to China a lot.  Nonetheless, as China doesn’t rely on the export market so much, a trade war between the United States and China won’t deter Chinese economic reform plan.  After all, China wants to grow the homegrown consumption market!  While growing a homegrown consumption market to rely less on the export market, China relies on the cheaper import market to balance out the reduction of Chinese exports.  Weaker Dollar and stronger Yuan will allow China to transit from the export market to a service market, also to move to a higher value-added export market — all in all – making this transition in a smoother fashion.

In conclusion, I think China can make the best out of either weaker or stronger Dollar, and the United States — as long as the country stays less competitive — won’t be able to have the upper hand if a trade war occurs between China and the United States.  Meanwhile, China can use stronger Yuan to buy cheap debts from United States’ weak Dollar to prop up China Yuan’s strength.  This, in turn, will actually help China transits from a manufacturing to a service economy.  As the low value-added market goes away in China, China has to accelerate the reform of the manufacturing sector at home so Chinese future export market will be more about high value-added products.  Anyhow, if the United States isn’t going to be able to use the opportunity of a weaker Dollar to reform her economy somehow to make the United States’ economy more competitive against rivals such as China, in the long run other rivals will use the weaker Dollar as the opportunity to make their own economies a lot stronger.

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I Believe Bitcoin May Not Survive Outside China In The Long Run!

I just checked the Bitcoin price and saw Bitcoin dropped down to $3,806.93.  It is a steep drop from when I saw Bitcoin was up near to $5,000.  This has happened because Chinese government is stepping up in regulation for Bitcoin.  Rumor or not, Chinese government is banning several major Chinese Bitcoin exchanges and stopping groups in China to create new virtual currencies.  Since such news have come out of China, Bitcoin has continued to slide downward.  It got rebound a bit, but it’s not yet over $4,000.

People are believing in Bitcoin for several reasons.  One important reason they believe in is that other governments won’t ban Bitcoin and so Bitcoin could survive outside China and around the world.  Other reasons are that Bitcoin won’t be controlled by governments, and so people can actually surpass the governments’ scrutiny when making financial decisions.  Unfortunately, Bitcoin has too many reasons for the governments around the world to step up to regulate.

I believe that China is a very powerful market factor, because China has the power to persuade other governments to step up their own Bitcoin regulations.  This is why I think Bitcoin won’t survive in the long run!  Of course, that’s my belief, and so I could be 100% wrong!  Don’t take my belief as fact, because you need to do your own research and soul searching whenever it comes to financial decision.  If you’re investing in Bitcoin and believing in Bitcoin, then you should just do what you think it’s best for you!

Anyhow, I like the idea of Bitcoin, but Bitcoin has several weak points that make me feel so uncomfortable about it.  Two most important weak points about Bitcoin are governmental factor which I had mentioned, and the other one is how easily Bitcoin could disappear.  What do I mean by this?  Well, let’s say I believe that Bitcoin coins are not actually safe on your devices.  Computers’ storages could get corrupted and poof your Bitcoin coins would disappear.  Hackers could just hack into your network or your smartphones and poof your Bitcoin coins would disappear.  No electricity or battery power, well you can’t really use your Bitcoin coins until the power is back.

In short, Bitcoin is much harder to get refund or recover once the coins leave you for good.  There is no institution to make sure the transaction is just, and the transaction always depends on pure trust without any insurance.  Once the governments start to ban Bitcoin together at large (i.e., worldwide), it makes Bitcoin users to lose the ability to appeal to the authorities for transactions gone wrong.  This weakens the Bitcoin’s appeal by a lot I think.  The things that make gold, hard physical asset, more appealing are values that can be verified and redeemed in the eyes of the world.  Bitcoin lacks the redeem attribute!  In my eyes, Bitcoin does not have the shine of gold, because you can’t redeem Bitcoin on justification but on pure trust!

 

 

Vietnamese Man In Africa

It’s a common story to see Vietnamese people travel to places like United States, Australia, France, China, and various other places to settle, but it’s rare, at least for me, to hear about a Vietnamese who would settle in Africa.  Furthermore, documentaries and TVs usually show an ugly image of most places in Africa besides the tourist attractions, and so Africa isn’t usually a place for Vietnamese to travel to for settling.  Anyhow, for me, personally, I’ve lived in the United States for the most part of my life, and so I wouldn’t know much about Africa for sure.  This is why I’m so curious and in awe to see a Vietnamese person who is successfully settled in Africa.  In the video right after the break, you get to see a story of a Vietnamese man who was tricked into visiting Africa which he got no money to fly back home.  Instead of flying back home, he made his living there from day one in which he got zero cent on his body.  Yet somehow he was able to make a living, and now he is somewhat successful in Africa.

High-Speed Rail in China Allows Ordering Foods From A Nearby Town or A City To Be Delivered To A Passenger’s Seat.

China’s marvelous high-speed rail just rolls out a pilot program for delivering foods from nearby local areas to the passengers’ train seats.  Basically, let’s say a passenger on China’s high-speed train doesn’t like the choices of foods that are being prepared by the rail network, he or she can just whip out a smart phone that got the official rail network app to order foods from a nearby city or town.

Once she ordered her foods from the app on her smart phone and when the train made the stop, the train attendances will make their way out of the train to retrieve the foods and deliver the foods to the correct passenger seats.  Of course, this has to be done in 2 hour advance or so, because once the train made the stop the food deliver guy has to be there with the foods or else the train will leave.  Usually, the train attendances have only 3 minute time frame to grab the foods for the passengers before the train would leave.

Now, the passengers could have a hot bowl of noodle, a hamburger, and whatnot that are available in the app’s menu.  So, besides having the ability to order foods from the train itself, the passengers got another choice of ordering foods that are not being prepared by the train attendances.  Since this is only a pilot program, and so the food menu is still limited with choices.

On-demand food delivery to a passenger on China’s high-speed rail is just a pilot program.  The pilot program had just been rolled out for couple days so far.  Since the program is only a pilot, and so many problems may need to be ironed out.  For an example, what if a bowl of soup noodle got spilled, how the train attendances help the passenger clean up her seat?  I bet since it’s only a pilot program, and so they could shut down the program if abuses could not be controlled.  I think it’s an amazing idea.  I wonder can they do the same for the airline passengers.

21 Year Old Unicycling 5000km Across China!

Biking around?  Me?  You must be joking!  I barely even walk.  It’s a sad fact, but it’s true!  So it’s unimaginable for me to even think about riding a unicycle, not a bicycle mind you, across China, but Ed Pratt, 21 years of age, did it.  On his YouTube channel, he made video clips of his 5000km adventure across China, by himself, on a unicycle.  Check out his last 20 miles out of China, heading toward Vietnam.

 

10 Year Old Chinese Guitar Genius

If all 10 year old girls play as good as her, who would need adult bands, right?  All I can say is wow!  She’s only 10 years of age or so, a little bit younger or older I’ve no idea, but she plays like she is a professional adult guitarist.  I can’t imagine how good she could be even more when she grows older.  I mean, at her level and age, I can only say wow.  I think her nickname is Yoyo, but her real name is Liu Pinxi.  She’s from China.  Check out her video right after the break and be amazed!