As a sign of good will, should China help Vietnam deal, with the financial crisis if it does happen? Options

[SoCal]

As a sign of good will, should China help Vietnam deal
with the financial crisis if it does happen?

Please share your constructive suggestions on this matter.
Please retrain yourself from posting profanity and lame comments. Thank you.

[MrShao]

Hi, Mr Socal:

with all due respect, ur post is 3 weeks overdue. the debate is over. China already stepped in and helped the Vietnam by giving her cash loans and special trading deal. I raised the issue at Vietnamese chat room 3 weeks ago. IMF didn't intervene. Remember i call ur reference 'rosy'. no hard feeling.

Since then, stock market all over the world plunged. High commodities prices are not going to go away pretty soon. I am constantly watching the vietnamese economy because it is the barometer of east asian economy. like before, i still worries about its cascading effects on her neighbors. in particular, vietnamese current account deficits, inflation, capital flight are everyone's top concerns (except in Viet-chat room).

beijing didn't help vietnam out of good will. it is in line with beijing's strategic interests. China doesn't want to appreciate Yuan too fast, but the pressure is building up by the inflow of hot cash - mainly dollar- from aboard. But if Viet Dong devalues too quickly, it will exacerbate beijing's position. That's to say that shorting Dong by buying dollar, and at same time using dollar to buy Yuan. the net effect is that china ends up with lots of dollars reserves and excess Yuan circulation, meaning inflation. Beijing lends the Dollar to Viet allowing Viet gov to defend Dong's value. so the cycle mentioned above will not hurt china. Very Smart move.

This post has been edited by MrShao: Jun 30 2008, 05:46 PM

[SoCal]

Hi, Mr Socal:

with all due respect, ur post is 3 weeks overdue. the debate is over. China already stepped in and helped the Vietnam by giving her cash loans and special trading deal. I raised the issue at Vietnamese chat room 3 weeks ago. IMF didn't intervene. Remember i call ur reference 'rosy'. no hard feeling.

Since then, stock market all over the world plunged. High commodities prices are not going to go away pretty soon. I am constantly watching the vietnamese economy because it is the barometer of east asian economy. like before, i still worries about its cascading effects on her neighbors. in particular, vietnamese current account deficits, inflation, capital flight are everyone's top concerns (except in Viet-chat room).

beijing didn't help vietnam out of good will. it is in line with beijing's strategic interests. China doesn't want to appreciate Yuan too fast, but the pressure is building up by the inflow of hot cash - mainly dollar- from aboard. But if Viet Dong devalues too quickly, it will exacerbate beijing's position. That's to say that shorting Dong by buying dollar, and at same time using dollar to buy Yuan. the net effect is that china ends up with lots of dollars reserves and excess Yuan circulation, meaning inflation. Beijing lends the Dollar to Viet allowing Viet gov to defend Dong's value. so the cycle mentioned above will not hurt china. Very Smart move.

Mr. Shao,

Do you know how much is the cash loan that China loans to Vietnam?



Since Vietnam, China, Taiwan, Korea, and Japan are Confucius countries, I think it is best to offer mutual assistance to each other. This is a win-win situation for all sides.




This post has been edited by SoCal: Jul 1 2008, 09:02 PM

[EazyMoney]

Since Vietnam, China, Taiwan, Korea, and Japan are Confucius countries, I think it is best to offer mutual assistance to each other.

Actually, CHina's best and most loyal buddy is Pakistan, a Muslim nation. Pak-Sino relationship is like a brotherhood.
In Confucism, "Every man wants to be his own King".

Confucism originated from CHina, but some countries like Japan has adopted and take another level," act one way in the front and another way behind"

So among those Confucious countries there are no true "brotherhood" type of relation but mostly based on economic and pratical considerations.

This post has been edited by EazyMoney: Jul 2 2008, 10:38 AM

[SoCal]

Actually, CHina's best and most loyal buddy is Pakistan, a Muslim nation. Pak-Sino relationship is like a brotherhood.
In Confucism, "Every man wants to be his own King".

Confucism originated from CHina, but some countries like Japan has adopted and take another level," act one way in the front and another way behind"

So among those Confucious countries there are no true "brotherhood" type of relation but mostly based on economic and pratical considerations.

Pakistan is a new comer and like new wine.


Nothing can taste better like old wine of Vietnam, China, Taiwan, Korea, and Japan.



New friends can come and go; but branches of the same tree cannot be cut.

This post has been edited by SoCal: Jul 2 2008, 12:21 PM