Author: abramicus

WHAT REASON FOR PBOC TO KEEP THE YUAN AT 6.20 CNY/USD?   [Copy link] 中文

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Post time 2015-8-6 16:36:57 |Display all floors
abramicus Post time: 2015-8-6 14:51
I feel honored to be criticized by China-haters like Revolutionar.  It only proves that what I am  ...

If at all possible, I am sure the party members would all want their yuan to be worth more when they send their loots  overseas.




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 2015-8-7 12:41:32 |Display all floors
CORRUPTION THAT CAN BE CAUGHT IS JUST LIKE THE TIP OF THE ICEBERG . . . MOST HEAVY DUTY CORRUPTION CAN NEVER BE CAUGHT BECAUSE THERE IS NO QUID PRO QUO UNTIL THE TRAITOR IS NO LONGER IN OFFICE AND NO LONGER IN CHINA.

For example, by overvaluing the Yuan, while Japan is devaluing the Japanese Yen, China is forfeiting hundreds of billions of dollars of exports that simply never get exported because China's price in dollars is higher than Japan's price in dollars.  All that is needed is an "understanding" that those who are responsible for this astronomic transfer of export income from Chinese manufacturers to Japanese manufacturers will be rewarded "appropriately", communicated through trusted intermediaries, and the "deal" is set.  When such officials later on retire with a clean name and unblemished record of uncorrupted service to the country, they or better yet, their children and grandchildren are then given well paying jobs by foreign firms, and their brokerage accounts abroad explode with profits made in the stock market, by the simple tactic of using their accounts to front run the accounts of other clients on a regular basis, mechanism of which can only be effected, even if not recorded in foreign brokerages.  How can the Chinese government EVER discover such forms of corruption, unless the foreign handlers of these corrupt officials expose them for ulterior motives?  Never.

So, what kind of ANTI-CORRUPTION DRIVE are we talking about, when the sharks and whales are beyond netting, and only the minnows and shrimps get caught and eaten alive?

Who is fooling who?  The moment of truth is coming when the Fed raises the interest rate as Yellen has been telling US investors to prepare for by pricing in the rate hike into the price of the shares of stocks now.  These investors are not listening to golden advice.  The smart money has priced it in, and thus are now in cash mostly.  The retail crowd ever looking for the easy profit is what is left in the stock market right now.  The next move is a Fed rate hike.  

Then, the dominoes will fall.  If China keeps the peg at 6.20 Yuan/Dollar, Chinese products will be even more overpriced than US products, which are already overpriced relative to Japanese, Vietnamese, and European products, leading to factory closures, bankruptcies and layoffs.  The real economy will cave in.  If China THEN devalues the Yuan, Chinese factories that have been supplementing their cashflows from dwindling export revenues with foriegn-denominated loans will find it very difficult to repay their foreign-currency-denominated loans using depreciated Chinese Yuans, leading also to insolvency, factory closure, and layoffs.  In short, there is no escape route for China's economy, which will collapse in either case.  And if so, China's political stability will vanish, and its many territorial conflicts will suddenly flare up, as foreign countries take advantage of China's inability to respond to any challenge, economically, politically or militarily (which depends on funds to finance its logistics).  In short, China has tied its own hands, and stuck its neck into the guillotine of a Fed rate hike.  And there is no escape.

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Post time 2015-8-7 12:45:59 |Display all floors
abramicus Post time: 2015-8-7 12:41
CORRUPTION THAT CAN BE CAUGHT IS JUST LIKE THE TIP OF THE ICEBERG . . . MOST HEAVY DUTY CORRUPTION C ...

I doubt you will get your PhD in economics any time soon.




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 2015-8-7 13:30:36 |Display all floors
THE BEST ANTI-CORRUPTION DRIVE IS ONE WHICH WATCHES VIGILANTLY AGAINST ANY LOSS OF NATIONAL WEALTH OR LOSS OF NATIONAL INCOME, RATHER THAN SIMPLY WATCHING OVER AND RUNNING AFTER THE FEW CORRUPT OFFICIALS WHOSE GRAFT AND CORRUPTION ARE MUCH EASIER TO IDENTIFY.  

THE BEST AND ONLY LONG TERM ANTIDOTE TO CORRUPTION IS REQUIRING THAT ALL LOSSES OF PUBLIC WEALTH AND PUBLIC INCOME BE RESPONSIBLY ACCOUNTED FOR.

THIS . . . IS UNFORTUNATELY NOT THE CASE TODAY IN CHINA.

MASSIVE LOSSES OF FOREIGN CURRENCY RESERVES ARE NOT ACCOUNTED FOR RESPONSIBLY BY THOSE WHO WERE ENTRUSTED TO SAFEGUARD THEM . . . INSTEAD, A HUNDRED EXCUSES ARE MADE AND ACCEPTED FOR THE LOSS OF HUNDREDS OF BILLIONS OF DOLLARS OF THE COUNTRY'S FOREIGN CURRENCY RESERVES.

MASSIVE LOSSES OF EXPORT INCOME, LOSSES OF ANNUAL GDP, LOSSES FROM UNBRIDLED MARGIN TRADING BY THE RETAIL PUBLIC, LOSSES FROM FOREIGN-CURRENCY-DENOMINATED DEBTS TAKEN ON BY CHINESE PRIVATE AND PUBLIC ENTITIES . . . ARE NOT ACCOUNTED FOR RESPONSIBLY . . . BUT ARE SWEPT UNDER THE RUG AS SIMPLY "THE NEW NORMAL".

THIS IS THE NEW CORRUPTION, INSTEAD.

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Post time 2015-8-7 13:39:03 |Display all floors
This post was edited by abramicus at 2015-8-7 13:40

THE CHINESE COWBOY

What we are seeing today is like a Cowboy comedy, where the Sheriff rides out every day with his posse to hunt down every robber in his wanted list, with glorious success, while the bank clerks and managers cart off wagons upon wagons of gold from the bank's vaults day and night when the Sheriff is either away or sleeping restfully.  In the end, all the robbers are caught, and the bank is completely EMPTY.

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Post time 2015-8-7 15:29:57 |Display all floors
abramicus Post time: 2015-8-7 13:39
THE CHINESE COWBOY

What we are seeing today is like a Cowboy comedy, where the Sheriff rides out ev ...

The vault will be empty when the yuan becomes useless paper




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 ...

Use magic tools Report

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Post time 2015-8-8 00:21:03 |Display all floors
abramicus Post time: 2015-8-7 13:39
THE CHINESE COWBOY

What we are seeing today is like a Cowboy comedy, where the Sheriff rides out ev ...

China will hack into the financial banks in Cayman Island, to get hold of the list of people who hide their money in Cayman Island.  Estimated 20 trillion USD are kept in Cayman Island, can you verify this ?

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