What is the currency of "Transnistria?

What do you think of the Chinese currency tactics and perhaps trying to adapt the chinese model to the US?

• This is quite long---but it does give you a perspective on what the US needs to survive the 21st century economically, and it involves south america. China has realized something quite important: when you ahve a trade surplus, people from outside the nation put upward pressure on the currency as its perceived they can readily pay debt since they have a surplus.Therefore the currency goes up. But throughout this process, products become less competetive as prices for them go up because of the currency, which means there is no longer a trade surplus...The nation then has to contend with borrowing money, which then re-enforces the perpective from the outside that china is less likely to pay the debt, so they are willing to pay higher interest rates...all of this puts a downward pressure on the currency...which then increases trade surplus and then coupled with perhaps the implementation of higher interest rates....strengthens the currency...repeating the whole process...China knows it is the best nation to build products and even if its currency was market value...China would still be the prime supplier of all products... and due to market fluctuations allowing market value would simply allow fleeting investors sparked by perceptions will drive the currency up and down like a seesaw....there is less stability than would be desired. So what do they do? they peg their currency to the currency of their main buyer, the US. That way, whenever the US dollar goes down, so does the yuan, when it goes up, so does the yuan...for china, there is always demand from the US if you just take into concideration the currnecy...and therefore it simplies things because then demand fluctuations ceaze to occur due to currency fluctuations but by the actual economic state of a country. China reasoned that this would be best for the US and itself. However, the artificial peg, does put every other supplier and many that wouldn't be out of bussienss, out of bussiness in places like the US...which means the US has a trade deficit, and must borrow heavily from places like a trade surplus like China. This means that the US is most likely to exhaust its spending power because its not producing anything itself. China has been sneaky though...it forsaw all of this...it knew the US would get hooked to this way of life...in the meantime it spends all the money it is acquiring due to the peg...and invests it in infrastrcuture to make it more competetive in the future when it might not have the peg (its like a time out session so it can catch up with all the other economies). Since there is no outside influence changing the value of the currency as its state controlled. And its artificially lowered. The trade surplus is enormous even in down times and allows it to grow at an exponential rate and the goverment invest in infrastructure to increase efficiency for its people and increase the productivity. However, this would never work in the US because the US is operating under a different system, a budget deficit. It does not have enough money from tax revenue to invest in infrastructure and resorts to borrowing, the dollar sliding. However, although China needs infrastructure as its undergoing an industrial revolution....The US doesn't...The purpose of the US is to increase jobs in order to ease unemployment during a down period. This is not sustainable...and therefore the chinese model CANNOT be made to work in the US. If we invested like China, we would bankrupt the nation, and devalue the dollar to the point we have hyper infaltion...or the more likely scenario...interest rates go up enormously, and it shrinks the private sector...which in turn, shrinks the goverment..... its all related...you cannot have a large goverment without a large private sector. China probably is waiting for the size of the US goverment and the role of it to shrink...what china has basically done with currency manipualtion...is allowed it to destroy all the industries across other nations (its competetors)....so that when the peg is revalued....it can start as the front runner......once they were at the back of the line...so what they did was catapult themselves with currency manipulation to the point no one could compete....starve them to death, and then...when people realize and make them revalue....so competetive that no one will be able to compete....so china has been quite sneaky throughout this whole process. What do you know, the best example of wealth redistribution I know of....I guess marxists in the US would be proud. However, for the US to try to mimic the Chinese model would be a mistake. They are two different species....you cannot be a rabbit when your a tiger and vice-versa. The US cannot ivnest in infrastructure like China because it will never have the surplus necessary long term for such. The debt will stack up as to prevent its eventual construction. Neither can it, because its not a Supply economy. Its a

• Answer:

  Adopting Chinese model is not the solution, unless US wants to forego the credibility that it has earned, but I do realize something needs to be done on this front.