Will Americans be able to compete with the Chinese?
1. The Chinese minimum wage is around 600 yuan (USD80)
per month.
Americans minimum wage is about USD5 per hour = USD800 per month
Minimum wage Americans USD800 vs Chinese USD80
http://www.chinalaborwatch.org/2006%20ed…
2. In terms of food, China basically is a Self-Sufficient country. Therefore Not Necessary to buy other currencies for food shelter.
And that’s partly why their foreign reseves are growing.
3. The Chinese Foreign Exchange Reserves is USD1,400 Billion.
http://en.wikipedia.org/wiki/list_of_cou…
If US urged China to float their currency without the existing fixed bands, would this help to compete with China?
(US hoping that the Yuan will increase and labor become expensive hence certain products in China becoming costly that all factories could be shifted back to US)
With 1.4trillions reserves, forex mkt is in their hand.
Additional Details
32 minutes ago
Just like the japanese who have lots2 of foreign reserves, the Chinese too can easily interfere in the forex open market (throw away their Yuan to make it cheaper) to determine the value as they like.
CASTELLANOS