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THE PBOC MUST DEVALUE THE YUAN FASTER THAN ITS SNAIL PACE TODAY [Copy link] 中文

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Post time 2015-1-2 16:08:27 |Display all floors
This post was edited by abramicus at 2015-1-2 16:11

The manufacturing sector of China continues its steady spiral of death as the PBOC keeps the noose of the overvalued yuan tight on the neck of Chinese factories, forcing its products to be overpriced in dollars abroad and also overpriced in yuans in China, all in one stroke, benefiting only foreign manufacturers, and foreign investors who can repatriate more dollars from China, taken out of China's foreign currency reserves, courtesy of the PBOC, not to speak of the capital flight artists who have borrowed $1.5 trillion US dollars worth of loans in the past 2 years, effectively wiping out nearly $3 trillion dollars of China's foreign currency reserves, as anybody can figure out that ASSETS - LIABILITIES = EQUITY, and China's nominal liabiities had increased to $1.5 trillion dollars in the past 2 years with nothing to show for it, though when calculated with interest payments on these loans, the total cash now effectively under lien would be closer to $3 trillion dollars, which leaves China with a net equity of only 1 trillion dollars or less.

Deng Xiaopeng spearheaded the devaluation of the Yuan in 1993 to 6.37 Yuan/Dollar and China's annual GDP growth rate rose from the low single digits to 14%.

From both an economic and the historical standpoint, the PBOC's devaluation of the Yuan looks too little and too late, as the PMI of the manufacturing sector of China dropped from 50.3 in November to 50.1 in December, 2014.

Which fox one may wonder has gotten into China's chicken koop, slaughtering the chciken that have been laying Cnina's golden eggs for the past 20 years?

It is time to tackle not just the tigers and the flies, but also the foxes, it seems.



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Post time 2015-1-2 17:21:21 |Display all floors
the best way to help devalue the yuan is sell yuan and buy $.....................


if enough people sell yuan, .......it will come down.






I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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Post time 2015-1-3 02:47:58 |Display all floors
China can sell 100 billion dollars of her 3 trillion dollars reserve, every week in the auction system, and get paid in Yuan or gold equivalent.   When China sell US dollars, they will be plenty of yuan sellers in China who wanted US dollars to bring out of China.

As a result, wall street currency traders will be screwed because nobody knows the true value of yuan per dollar.

This is the best and only way to recycle surplus US dollars China acquired in international trade.

This will also manage and control inflation in China.

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Post time 2015-1-3 03:40:24 |Display all floors
bushier Post time: 2015-1-3 02:47
China can sell 100 billion dollars of her 3 trillion dollars reserve, every week in the auction syst ...

China can sell all the 3 trillion $ in one go and the FEd can buy all of them in one go.......don't forget.....the Fed has unlimited capacity to print $ money.




I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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Post time 2015-1-3 20:07:12 |Display all floors
This post was edited by abramicus at 2015-1-3 21:05
Revolutionar Post time: 2015-1-2 17:21
the best way to help devalue the yuan is sell yuan and buy $.....................

THIS IS THE BIGGEST ECONOMIC HEIST IN CHINA'S HISTORY.  THE TIGERS ARE CAGED, AND THE FLIES ARE SWATTED DOWN, BUT THE FOXES ARE HAVING A PARTY IN THE CHICKEN KOOP.

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Post time 2015-1-3 20:18:21 |Display all floors
This is how Deng Xiaopeng would have refuted the economists behind the revaluation of the Yuan, through using China's foreign currency reserves to buy up the Yuan, wasting China's hard earned dollars which end up in the pockets of the foreign investors, foreign exporters, and corrupt officials needing to send their "hard earned Yuans" abroad in the form of dollars.

"Don't tell me that China can become more prosperous by buying back its Yuans with its hard earned dollars.  Show me a single farmer who became richer by spending his savings to buy up his own crop at the market place, so that he can charge his customers a higher price.  The moment he has used up all his savings, the price of his crops, both that he had bought back, and those that he has recently produced, will fall like a stone!"

"This is a fool's errand, and an exercise in futility.  If your Harvard and Yale economics degrees cannot tell you that, don't blame Harvard or Yale.  Blame your own stupidity."

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Post time 2015-1-3 20:27:33 |Display all floors
The PBOC needs Chinese new blood, street-smart fellows who were not miseducated in the West, until they accept as gsopel truth the biggest joke in economics history - that you can get rich by bidding up the price of your own Yuan by spending all your dollar reserves - those who believe in this total nonsense do not deserve to even pass Economics 101 at the College Freshman level.

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