tag:blogger.com,1999:blog-9138994904411225576.post5042348284476771503..comments2023-12-29T00:08:21.051-08:00Comments on fear of a red planet: "More market-friendly"Gilman Grundyhttp://www.blogger.com/profile/06607416440240634159noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-9138994904411225576.post-7212201459708493362015-08-18T23:37:24.042-07:002015-08-18T23:37:24.042-07:00Are you sure they are not letting the Yuan fall in...Are you sure they are not letting the Yuan fall in value just because they don't want to lose face? Aren't there better reasons? <br /><br />In the past the Chinese government kept the Yuan undervalued for years. I don't think that was for the sake of not losing face.Ji Xianghttps://www.blogger.com/profile/03406727999722525339noreply@blogger.comtag:blogger.com,1999:blog-9138994904411225576.post-28392341787689750742015-08-18T05:37:56.448-07:002015-08-18T05:37:56.448-07:00Agree that they're not capable of giving up on...Agree that they're not capable of giving up on interventionism. The problem is in the case of China at some point you really have to doubt that, for example, the stock exchange index or internal currency values aren't primarily decided by government intervention. Artificially keeping over-valued companies at a high value, artificially keeping the value of the Yuan higher than the market thinks it should be, and doing so primarily because the government cannot allow them to fall because then they would lose face <i>and for no other real reason</i> is definitely worrying behaviour. At some point something has to give. Gilman Grundyhttps://www.blogger.com/profile/06607416440240634159noreply@blogger.comtag:blogger.com,1999:blog-9138994904411225576.post-9586776413811581832015-08-17T20:17:23.346-07:002015-08-17T20:17:23.346-07:00The Chinese state is simply incapable of giving up...The Chinese state is simply incapable of giving up on its habit of heavy-handed interventionism, and really giving play to market forces. Not that that's necessarily a bad thing. Lasseiz-faire doesn't work for financial markets, as the 2008 crisis shows. Government interventions however should take place within a framework of properly defined and transparent rules, and in China they unfortunately don't.Ji Xianghttps://www.blogger.com/profile/03406727999722525339noreply@blogger.com