tag:blogger.com,1999:blog-5304409.post116482267762476667..comments2024-03-17T16:17:20.145-07:00Comments on Amit's Thoughts: China, the Dollar, and ChristmasAmithttp://www.blogger.com/profile/12159325271882018300noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5304409.post-1164861453353661902006-11-29T20:37:00.000-08:002006-11-29T20:37:00.000-08:00Hithis has nothing to do with your comment. I was...Hi<BR/>this has nothing to do with your comment. I was looking for applets for a self organizing map demonstration for my classes, I teach biology at a j/c. And I have a small amount of grant money... any chance you would be interested in working with me to make a very simple self organizing map? just a demonstration type thing..Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5304409.post-1164854544093341742006-11-29T18:42:00.000-08:002006-11-29T18:42:00.000-08:00Henotter, I agree that the Chinese would not want ...Henotter, I agree that the Chinese would not want to have the dollar drop, except that during Christmas I think there won't be much affect on demand because people feel that they have to buy things. (At other times of year people are willing to not buy.)<BR/><BR/>As far as the costs going up, I do not mean the cost of labor or raw materials, but only the cost after currency exchange. The dollar dropping means the Chinese goods cost most for U.S. retailers to buy, so Chinese companies receive more dollars than they would have if the dollar had not dropped.Amithttps://www.blogger.com/profile/12159325271882018300noreply@blogger.comtag:blogger.com,1999:blog-5304409.post-1164853069021126482006-11-29T18:17:00.000-08:002006-11-29T18:17:00.000-08:00Amit, wouldn't it be reasonable to suppose that ra...Amit, wouldn't it be reasonable to suppose that raw materials for the Christmas season were purchased by the Chinese weeks if not months ago on the commodities market? The Chinese have fixed labor costs as well, so there is no variation or increase in labor to build toy's. The only thing left for the Chinese to determine would be how they choose to account for the process, and I am uncertain about their rules fo accounting. The actual cost to produce the toys, was determined in the the past because the Chinese have already paid for the raw material commodities, and labor is constant. . . I think you are referring to an internal accounting matter when you speak of the Christmas season upcoming, because everything is already determined except by how many to relieve inventory by at the end of this upcoming Christmas season, and what the profit margin will be dependant upon how they decide to reflect cost of goods.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5304409.post-1164851199261847132006-11-29T17:46:00.000-08:002006-11-29T17:46:00.000-08:00I disagree that the Chinese want the Dollar to dro...I disagree that the Chinese want the Dollar to drop, something that would make the cost of Chinese goods higher relative to the dollar, and here is why the Chinese don't want the Dollar to continue to drop. When Chinese goods have become more expensive to the American Market it's consumers, there is some point where those marginal Dollar's once committed to Chinese goods become Dollar's decreasingly committed to Chinese goods and increasingly committed to shopping for 'Other' Non-Chinese goods because consumer's believe they are paying too much. So, there is risk that Chinese inventories will rise, if greenback deflation continues. I look for the fed to allow the Dollar to continue along it's current path, the Chinese have had numerous opportunities to float the yuan on the open market, apparentlythey believe that is not deemed to be in their self-interest, we will see.Anonymousnoreply@blogger.com