No Confidence in China’s Economy
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“Can China Avoid Devaluing Yuan?” [Aug. 13] is right on the money. In 1997, when the Asian financial crisis occurred, our research indicated that China would have no other way but to devalue its currency within two years.
The bases of our prediction were exactly the ones that were described in the article: declining exports, declining prices, demand and consumer confidence.
Why is it that China’s people opted to hoard their earnings rather than spend them? Because they have very insecure retirement plans, if any at all. The people have no confidence in their government. People who have made a fortune for the last decade want to get their money and families out of China.
DAVID MA
Chairman
Chinese Rights Party
Monterey Park
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