- Registration time
- Last login
- Online time
- 1223 Hour
- Reading permission
INTERNATIONAL RESERVE STATUS CANNOT BE BOUGHT WITH FOREIGN CURRENCY, BUT MUST BE WON BY RIGHT OF CONQUEST - ALL ALTERNATIVES ARE UNREALISTIC AND UNACHIEVABLE.|
It is clear that China aims to reform the IMF such that the Yuan will become an international reserve currency, and it is likely that China has factored in the cost to its economy in its attempt to achieve that goal, but it is unlikely that China had expected its annual GDP growth rate to sustain such a tremendous drop from 14% in June of 2010 to a 7% in November 2014, or that its foreign currency reserve growth rate would drop so dramatically from a monthly increase of 0.5% to 3.98% to a NEGATIVE change of -1.13%. The PMI has been dropping close to 50.2 at one point in the past 3 months.
Foreign pundits believe the drop of $103 billion dollars in October 2014 alone was due to CAPITAL FLIGHT, which contrary to China's supposed clamping down on corruption, is suspicious for a worsening of corruption, and in fact, with corrupt officials and their beneficiaries moving money out of China at an unprecedented rate, benefiting from China's self-imposed revaluation of the Yuan such that they get more dollars sent abroad than they could have a year ago.
Deng said China should touch the rocks as it crosses the stream.
We see none of that here in the way the PBOC has been carrying out the revaluation of the Yuan, not only are these red flags ignored, when the country is falling down and being washed down the river, it increased the value of the Yuan to historic levels of 6.10 recently, that promises to throw the stone after the fellow who fell into the well.
The advent of the Chinese yuan as the next reserve currency is the mirage, the cliff of factory closure and increased unemployment, plus the very real loss of China's hard earned dollar reserves, to the tune of 103 billion dollars in just one month of October, is the reality. China's currency is being driven by someone wearing sunglasses at dusk, not by someone who has turned on the headlights to avoid the sharp curves and the cliff's edge beyond them.
Before China reaches its "hidden" goal of being a reserve currency, it would have lost most of its foreign currency reserves, and the manufacturing productivity that would enable it to match its money supply with its goods and services in order to prevent inflation. The two combined is the well known economic nemesis of STAGFLATION which any country will need decades to climb out of. Such is the price of this self-delusion that foreign economists would never tell China's leaders is just a pipe dream used by Economic Hitmen to destroy entire countries with.