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

Assessment case study of financial analysis and operating

Assessment: Case Study of Financial Analysis and Operating Ratios In this assessment you will use the income statement and balance sheet information identified below and evaluate the firm's financial condition based on t ...

Problem q 1on july 1 2014 linked up inc acquired a new

Problem: Q 1 On July 1, 2014 Linked Up Inc. acquired a new machine at a cost of $15,000 with a residual value of $3,000. The estimated useful life is 5 years and 100,000 units. For the year ending June 30, 2015 the machi ...

Long-term liability transactionsfollowing are a number of

Long-term Liability Transactions Following are a number of unrelated transactions for the Village of Centerville, some of which affect governmental activities at the government-wide level. None of the transactions has be ...

Project preparing annual report documentsfor this 6-8 page

Project: Preparing Annual Report Documents For this 6-8 page Final Project (Not including the title page, abstract if included or reference page), you will create 1) the Financial Highlights, 2) the Presidents Letter to ...

You need to prepare a report on the topic communication amp

You need to prepare a report on the topic communication & leadership for the introduction to financial accounting. Learning Outcomes a) Use the accounting elements (assets, liabilities, equity, revenues and expenses) and ...

Need at least 750 wordsprepare and submit a report about

Need at least 750 words Prepare and submit a report about any government process which has been re engineered using IT like E-gate in the airport. Discuss the strategies of change management that you think was applied to ...

Comprehensive problemthis project is a review of the

Comprehensive Problem This project is a review of the accounting cycle that has been covered during class. Prepare all information in a professional manner and show details as needed. You should complete this on the page ...

Hanson company is constructing a building construction

Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,872,000 on March 1, $1,236,000 on June 1, and $3,008,500 on December 31. Compute Hanson’s ...

Assignmentuse the following information for questions 1

Assignment Use the following information for Questions 1 through 5: Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows: EXPECTED NET CASH FLOWS: Year P ...

Definedescribediscuss database fields records tables

Define/Describe/Discuss Database (Fields, Records, Tables, Database) and Database Management Define/Discuss/Describe ERD: Relationships, Primary Keys, Foreign Keys, Cardinality, etc. Provide Examples. Define/Describe/Dis ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro