For Real Estate Professionals Seeking a Market Edge
Currency Costs Lead to Tensions between China and the U.S
US Economists are speculating that China is keeping the yield of the renminbi, the Chinese currency, artificially low, offering its manufacturing industry a competitive advantage over international exporters. A cheap currency reduces the cost of Chinese goods against other currencies, allowing exporters to undercut costs in the global market. After allowing the renminbi to appreciate modestly through 2008, China has since cut rates to prolong their economic windfall. The international impact of China's manipulated renminbi has been a blow to the exports of other countries, namely the United States. Pressure has been growing in the U.S. for the Federal government to take a harder stance.
China’s currency manipulation has hurt the U.S. economy, and the U.S. Treasury continues to be pressured to confront China by clearly exposing and identifying its actions; a move that would abandon the U.S. government's continued tendency of essentially looking the other way. If China chooses not to modify their current financial position, experts believe the U.S. should respond by enacting a 10% tariff on Chinese imports. Convention dictates that this radical action may lead China to dump its sizable amass of U.S. Treasury Bills, driving U.S. borrowing costs higher and further reducing the value of the dollar. Conversely if China were to divest of their U.S. Treasury holdings, the devalued dollar would ultimately help U.S. exports.
We will keep you posted…
Hot Money
National Loan Program
Penstar recently identified a lender providing financing for multi-tenant retail, office, and industrial properties located throughout the United States. They will also consider restaurant and other special-use properties, leveraged to current land value. Loan sizes will range from $750,000 to $7,000,000 with a maximum 65% loan to value and a 25-year amortization. Respective terms and fixed rates of interest are: 3-years at 5.75%; 5-years at 6.25%; 7-years at 6.5%; 10-years at 6.75%; and 15-year terms at 7.0%. For more information, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.
Helpful Humor
“Old Irish Fishing Story”
While in Ireland visiting his cousin, Shamus decided to do a bit of fishing. As he sat on the riverbank with his line in the water, his cousin stopped by to see what Shamus was up to. |
30
Day Libor |
10-Year
Treasury |
Prime |
0.24% |
3.66% |
3.25% |
Penstar Realty Advisors can be reached at (818) 883-9600.
Our offices located at:
21700 Oxnard Street, Suite 1870, Woodland Hills, CA 91367