- Registration time
- Last login
- Online time
- 1223 Hour
- Reading permission
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.