Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

"The good news is Gamble believes China will continue to buy U.S. Treasuries, which should come as a relief to those worried about the $235 billion of securities being auctioned this week. ‘We don't have to ask them to buy our Treasuries, they simply don't have a choice,’ he says.
Because their economy is so dependent on exports, especially to the U.S., China needs us as much as we need them, Gamble describes. So expect China to keep funding our deficit -- by recalculating their surplus dollars into Treasuries -- and the U.S. to keep buying their exports, at least for the foreseeable future. The bad news is this same dynamic will prevent the Chinese from letting their currency, the remaining, float vs. the dollar anytime soon. If China's currency were allowed to trade freely it would rise in value vs. the dollar which would make Chinese goods more expensive for Americans.
"That would create fewer exports [for China] and make their unemployment situation worse," Gamble says. "The main thing policymakers in China are worried about is unemployment." Presumably, U.S. policymakers are worried about the same thing but don't expect this week's economic confab to provide any help on that front, or any other for that matter.

Task1. According to this article, what is the interdependency between China and US? Which country has a capital/current account deficit/surplus?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93373

Have any Question? 


Related Questions in Financial Accounting

In 1987 rh love gallery owned the title to a painting

In 1987 R.H. Love Gallery owned the title to a painting entitled Marlton’s Cove. The gallery sold 50 percent of the painting to Altman Fine Arts, a New York art dealer, and 50 percent to Andre Lopoukhine, a Boston art de ...

Which of the following statements is correct with respect

Which of the following statements is correct with respect to the preferred beneficiary election? This election is available for beneficiaries that are eligible for the disability tax credit, or who are eligible to be cla ...

Dsss corporation is considering a new project to

DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $125,000. The cost of shipping and installation is an additional $10,000. The asset will fall into the 3-ye ...

Hiding debt from current and potential investors is nothing

Hiding debt from current and potential investors is nothing new. Over the years, companies have used a variety of means to reduce reported financial leverage in their balance sheets. Can you name of some of these ploys o ...

Nottebart corporation has outstanding 10800 shares of 110

Nottebart Corporation has outstanding 10,800 shares of $110 par value, 6% preferred stock and 61,300 shares of $19 par value common stock. The preferred stock was issued in January 2014, and no dividends were declared in ...

Desmond drury and ty wilkins have decided to form a

Desmond Drury and Ty Wilkins have decided to form a partnership. They have agreed that Drury is to invest $27,300 and that Wilkins is to invest $63,700. Drury is to devote full time to the business, and Wilkins is to dev ...

Audit standards require successor auditors to attempt to

Audit standards require successor auditors to attempt to communicate with the predecessor before accepting an audit engagement. Audit standards require successor auditors to attempt communication with the predecessor aud ...

An auditor should consider which of the following when

An auditor should consider which of the following when evaluating the ability of a company to continue as a going concern? A lawsuit for which judgment is not anticipated for 18 months. Management's plans for disposal of ...

Eckhart company uses the absorption costing approach to

Eckhart Company uses the absorption costing approach to cost-plus pricing as described in the text to set prices for its products. Based on budgeted sales of 67,000 units next year, the unit product cost of a particular ...

During march the production department of a process

During March, the production department of a process operations system completed and transferred to finished goods 24,000 units that were in process at the beginning of March and 140,000 units that were started and compl ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate