Author: abramicus

China's Biggest National Security Threat - Economic Sabotage [Copy link] 中文

Rank: 8Rank: 8

Post time 2015-7-26 10:40:24 |Display all floors
bushier Post time: 2015-7-17 23:30

Marc Faber: The Chinese Will Not Print Money

The Chinese goal of having the Yuan included amongst the four currencies on which the IMF's SDR's will be based is an open secret.  The irony is that the IMF SDR share of all reserves held by banks around the world is less than 4%.  And, even if the Yuan is included with the other four currencies (dollar, pound, euro and yen) as basis for SDR issuance, i.e., will be held as reserve by the IMF itself, its share of the reserve base of the IMF is limited to the developing countries' quota of at most 6%.  Thus, the total share of the world's reserve currencies that the Yuan can hope to capture by virtue of being one of the five reserve currencies backing the SDR is a measly 0.24%.  This is less than 1%, whereas by dint of the Yuan being used in China's extensive trade with the world, other countries have voluntarily held Yuans as one of their reserve currencies, which en toto equals 2.7% of the reserve currencies of the world, ten times greater than the IMF's contribution to China's share of the global reserve currency.  

So, why is the PBOC sacrificing the entire Chinese economy in order to achieve less than 10% more of what Chinese manufacturers have already achieved for China because of their superior pricing and craftmanship?

The only reason is because it is listening to foreign dictates to shut down China, Inc.

Use magic tools Report

You can't reply post until you log in Log in | register

Contact us:Tel: (86)010-84883548, Email:
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.