Wednesday, December 03, 2008
I thoroughly enjoyed the movie "The Dark Knight". There is a memorable scene near the end of the film where the devious antagonist, The Joker, vocalizes his emotional reaction to (what he thinks is) an inevitably explosive situation.
He states "and here...we...go."
In keeping with previous posts (and humbly omitting any references to paper dragons and the like), how does one translate that into Mandarin?
The move follows a Politburo speech by President Hu Jintao warning that China is "losing competitive edge in the world market".
China has allowed a crawling 20pc revaluation over the past three years. Any reversal risks setting off conflict with the incoming team of President-Elect Barack Obama in Washington. Mr Obama called China a "currency manipulator" during the campaign, a term that carries penalties under US trade law.
Outgoing US Treasury Secretary Hank Paulson is viewed as a "friend of China". He called for a stronger yuan this week before embarking on a visit to Beijing, but the plea was couched in friendly terms. This soft-peddling may soon change.
Hans Redeker, currency head at BNP Paribas, said China's policy switch could set off a dangerous chain of events. "If they play this beggar-thy-neighbour game, it will cause a deflationary shock for the whole world," he said.