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This post was edited by abramicus at 2014-12-8 16:20|
Enough of the fairy tale about revaluing the Yuan until it is the most expensive currency, as a mark of greatness. This is nonsense. All it does is to use up China's foreign currency reserves to buy Yuans that have no intrinsic worth to China as it can print them for peanuts, and allow the Japanese to earn an equivalent amount of dollars by repatriating their investments from China, and by exporting to China and the countries where Chinese exports currently have a major market share. It supports the Japanese Wehrmacht that is using up billions of dollars worth of foreign reserves earned from China to stock up on the most advanced weapons money can buy, against China. That is a more likely reason why Japan is in recession in spite of the largest devaluation of its currency and money printing it has done since the end of WWII.
Japan appears to be moving swiftly into a war economy, and China better defend itself fast, by devaluing the Yuan to stop Japan from completing its militarization.
Abe has declared a snap election that is supposed to give him and his fanatically war-loving hawks another 4 years in office. A rapid devaluation of the Yuan by letting market forces do it in short order will expose to the Japanese people the total bankruptcy of Abe's economics and military misadventurism. This is the best time to defeat the Japanese ultra-nationalists and militarists in the election!
Is the Chinese ambassador to Japan asleep, or drunk? He should be protesting the PBOC for its monetary policy that works like hand in glove in handing to Japan all the billions of dollars it needs to remillitarize itself against China. And protest now!
China's exports dropped by some 6% compared to October, even though import costs also dropped and even more due to the oil price war going on. But in real terms, the Chinese economy, both in its export market, and in its domestic market, has shrunken, as predicted based on the irrational revaluation of the Yuan. The PBOC should be banned from buying Yuans in the open market with hard earned foreign currencies, as that is a total wastage of the public's savings. We must bear in mind that the amount of dollar-denominated debt incurred by Chinese banks and businesses had doubled in the past 2 years, to 1.1 trillion dollars as of October 2014, so China cannot count its foreign currency reserrve as 3.9 Trillion dollars anymore, but more like 2.8 trillion dollars, which is a large drop by any standards, and which will continue to worsen as it vainly tries to revalue the Yuan ever higher. In Chinese, there is a saying about a sycophant piling up ashes for his boss to stand on, and that pile of ashes are the dollars being burnt right now to buy up hundreds of billions of Yuans with.