Author: 468259058

Was U.S. Dollar printed too much compare with Chinese RMB? [Copy link] 中文

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Post time 2011-4-6 09:10:04 |Display all floors
Originally posted by UYA at 2011-4-6 08:43
3) China,Japan and Russia had a secret meeting to start using a "hybrid" currency exchange between the countries.
.

hehe
If it is a national secret, please delete the information before it is found by CIA of United States.

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Post time 2011-4-6 09:11:58 |Display all floors
Originally posted by UYA at 2011-4-6 08:43
The dollar will be replaced as the worlds reserve currency in the coming months
.  

If so, Maybe the U.S. dollar would collapse.

Would it happen in the coming months?

hehe, Let us wait and see.

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Post time 2011-4-6 09:14:34 |Display all floors

the difference

Originally posted by 468259058 at 2011-4-6 09:05
.
thanks for your reply.

here, I just do a calculation to find if U.S. governemnt printed too much money.
However, after my calculation, U.S. government printed too less money than Chinese go ...


The difference is that China's Central Bank is owned by China, US Central Bank is not!
So there is no interest to pay.

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Post time 2011-4-6 09:20:22 |Display all floors

another

Originally posted by 468259058 at 2011-4-6 09:05
.
thanks for your reply.

here, I just do a calculation to find if U.S. governemnt printed too much money.
However, after my calculation, U.S. government printed too less money than Chinese go ...


US needs to print more money to keep up with the interest it owes (mainly China).

Again you also need to include population into your equation.

China is largely a "cash and carry" business, while US is a "card and credit" economy.

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Post time 2011-4-6 09:33:52 |Display all floors
Originally posted by 468259058 at 2011-4-6 08:31
Chinese experts' conclusions.
e.g.
China is suffering from the losing value in U.S. govenment debt measured by U.S. dollar.
Chinese RMB relative appreciated while U.S. dollar depreciated ...
.

Chinese RMB relative appreciated from a few years ago. I agree with the conclusion.

However, after I did the calculation.

Now, Chinese RMB exchange rate is manipulated by Chinese government and the pressure from other governments.
But at last the Chinese RMB would depreciate sharply or collapsed one day in future driven by the market supply and demand theory if Chinese government goes crazy on printing paper money as the past 2 decade.

Would it happen in future?
From the present huge inflation, some Chinese governemnt officials in charge of monetary system and economists have began to realize that Chinese government printed too much money.

Next it would be a game between interests groups.

Commercial banks want to print much more money, and then the present bad debts would disappear in the inflation.

Government-owned companies with huge debt want to print much more money, and then the debts would turn much less in the inflation.

Department of Central government in charge of the huge debts (Trillions of yuan) from the reform of bank system in the late 1990s would want to print much money, and then the historical bad debts would disappear in the inflation.

Export orientied companies want to print much more money, and then Chinese government can buy more U.S. dollar and fix the exchange rates.

Who don't want to print much more money?

Ordinary Chinese, especially those who deposit money in the banks without enough money to buy assets including apartments to save the value.

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Post time 2011-4-6 09:41:29 |Display all floors
Originally posted by UYA at 2011-4-6 09:20
China is largely a "cash and carry" business, while US is a "card and credit" economy.
.

It's the different ways of living between China and U.S. government.

Did you read my American granny and Chinese granny story?

From the age of Primer Zhu Rongji, Chinese government began to instruct Chinese people learn the way of living, "card and credit" economy, from American people in the late 1990s.


It's another way to conduct if U.S. dollar go to bankruptcy.

The total debts of American society / American wealth

The total debts of Chinese society / American wealth

The total debts of American society is disclosed, We can find those data.
However, even Chinese central government don't know how much debts owed by local governments.
That is to say American debts is open and visible while Chinese government debts are secrets and invisible.
(We can find the debts of Chinese people and companies from statistics now.)
So I couldn't do the comparison on Debt ratio.

It looks like the debts of American society is more than Chinese society.

[ Last edited by 468259058 at 2011-4-6 10:00 AM ]

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Post time 2011-4-6 09:49:33 |Display all floors
Originally posted by UYA at 2011-4-6 09:20
US needs to print more money to keep up with the interest it owes (mainly China).
.
It's a question: why U.S. government need to print more money.
But did U.S. government print more money? From my comparsion, the answer is No.

It's just like a question: Why Chinese government need to print more money.
It's different from the question: Did Chinese government print more money?

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