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China Must Counter Japan's Unilateral Devaluation of the Yen [Copy link] 中文

Rank: 8Rank: 8

Post time 2013-4-29 12:53:03 |Display all floors
Japan is getting a free ticket toward paying for its re-militarization from China, by devaluing the Yen, and replacing Chinese exports with Japanese exports artificially cheapened by its massive printing of Yens.  China should not subsidize Japanese militarization.  It should revalue the Yuan downward immediately to 8:1, and even lower if necessitated by Japanese printing of more Yens.  This is economic warfare by Japan, to enable it to rebuild its Wehrmacht.  One day that China's Central Bank governnor allows Japan to outsell China, is one day that he is letting Japan produce more weapons by which to destroy China.  How can any one sit tight and watch Japan steal China's export market in broad daylight?  No patriot can.



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Post time 2013-4-29 14:25:54 |Display all floors
While each country must have its own response it could be reserved as action of the last resort if permissible. Here could be an opportunity to frame Japan's devaluation act as a benchmark for future like moves. Of course that door could be closed once Japan is done with it. Maybe closing the door half way on Japan is a good idea. Much depends on the collaborators. Present also is an opportunity for China to work with the necessary bodies to foster a more conducive international currency mechanism. The RMB's international use is still insignificant but to increase its use where speculation can still be rife may not be favourable, same for many small countries as well. It is a question if China can make something out of Japan's move. Japan's devaluation, no matter what excuse it forwards is actually making all East Asians foot the bill of its recovery, of course with US backing by not repeatedly calling Japan currency manipulators. The RMB is fresh with its own unique advantages, thus if its rise in value will not affect China's and East Asia's trade and competitiveness, then that is conducive. Can China think forward to create an iconic international currency symbolism and mechanism out from it? Can China build a society outside China that will use the RMB as the preferred trade and reserve currency?

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Post time 2013-4-29 16:59:42 |Display all floors

NO TIME TO WASTE WAITING TO DEVALUE THE YUAN!

This post was edited by abramicus at 2013-4-29 17:06

The choice of what is an international reserve currency goes beyond mere economics.  It is rooted in politics, and particularly, in military politics.  The ultimate guarantor of the interconvertibility of one's currency against another is not just the productivity and natural resources one has, but one's ability to effect "regime change" on any country that rejects its interconvertibility, using any pretext, such as human rights for minorities, for dissidents, and for religious redcoats.  In this day and age of the universally mendacious media, any excuse can be found and popularized to effect "regime change" on any country that refuses to accept one's currency for any reason.  Sanctions and embargoes are par for the course to force the uncooperative countries to accept one's fiat currency or face scarcity of resources, especially energy and food, that it needs but lacks foreign currency to buy.

Unfortunately for China, these methods of coercion are not part of its repertoire, and therefore, the Chinese Yuan can only be an international reserve currency by consent, which is unlikely to come from its competitors and enemies.  Thus, it can only be regional or limited to its allies, but it cannot be an international reserve currency.

To hold back retaliating against Japanese devaluation of the Yen, which uses the decrement in Chinese exports to boost Japanese exports, and thus Japanese earnings that can be used to pay for its militarization, courtesy of China, in the vain hope of gaining more international support for the Yuan as an international reserve currency is naive at best, and foolish at worst.  In any event, it is a fool's errand, pursuit of which rather than the rebalancing of the Yuan against the Yen with immediate devaluation, will cause Chinese exports to die, and Japanese exports and factories to prosper.  It is thus IRRESPONSIBLE for the Chinese Central Bank to procrastinate about what to do in response to the unilateral Japanese hostile devaluation of the Yen.  It is also RECKLESS, in that further delay only loses billions of dollars of exports every week, and forces closures of Chinese factories, raises unemployment, and in the context of an intentionally jacked up domestic demand, runaway inflation - in short, STAGFLATION due to Chinese Central Bank's conscious choice to not devalue the Yuan, in the hope of getting the approval of China's global competitors and haters, to have the chance of basking in the glory of the Yuan becoming accepted as an international reserve currency.  This is truly vain and delusional, and must be immediately corrected.

Chinese workers cannot wait.  Chinese factories cannot wait.  China's defense industries cannot wait.  And if the Chinese Central Bank insists on waiting, it can do so by lining up for a job at some foreign central bank, as a consultant or servant, but it has no job to do in China.

Do not let the inaction of the Central Bank kill off Chinese productivity even for just one day.  Fight!  Victory is just around the corner if China devalues the Yuan overnight to 1:8.  Japan will reel and stumble.  Its Wehrmacht will be impossible to complete, and China's sovereignty over Diaoyudao and the South China Sea islands will never be challenged by the Japanese pirates ever again.

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Post time 2013-4-30 10:24:11 |Display all floors
Japan is tiny nation.  don't be afraid.  they are a poor people, three times nuked.  Even the Klingon Empire became allies with the Federation.  Why be enemies for ever?

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Post time 2013-4-30 11:18:56 |Display all floors
Who wants to be enemies forever?  Not China which forgave Japan its past invasions of China.  It is Japan which refuses to be friends with China, and even now, has invaded Diaoyudao, taking a part of China for its own, all over again.  Nicecat, you should be posting in a Japanese forum to persuade them to stop being so hostile toward China, not in a Chinese forum, asking China to be nice when attacked, or else be branded as hostile.

Japan wants peace?

Get the hell out of China's Diaoyudao!  Get the hell out of Dokdo!  And stop worshipping the mass murderers of Chinese as your national heroes.  But if you cannot say as much to the Japanese, you have even less qualification to say half as much to the Chinese who have died like flies under Japanese onslaughts.

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Rank: 8Rank: 8

Post time 2013-4-30 11:20:10 |Display all floors
CHINA MUST DEVALUE THE YUAN IMMEDIATELY IN ANSWER TO THE JAPANESE DEVALUATION OF THE YEN.  WHY ALLOW THIEVES TO STEAL YOUR EXPORT MARKET, WHEN THEY ARE ALREADY STEALING YOUR ISLANDS IN BROAD DAYLIGHT?

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Post time 2013-4-30 15:00:46 |Display all floors

JAPAN'S DEVALUATION OF THE YEN IS THE EQUIVALENT OF AN EXPORT WAR ON CHINA!

This post was edited by abramicus at 2013-4-30 15:02

IF CHINA'S EXPORTS COLLAPSE, WE SHOULD ALL KNOW WHO TO BLAME - THE PEOPLE'S BANK OF CHINA - FOR DRAGGING ITS FEET ABOUT DEVALUING THE YUAN TO NEUTRALIZE THE YEN DEVALUATION.  

EVERY DAY THAT PASSES WITH THE YUAN OVERVALUED IN RELATION TO THE YEN IS ONE DAY WHEN CHINESE WORKERS MUST BE LAID OFF, CHINESE FACTORIES MUST HALT PRODUCTION, AND CHINESE RESOURCES TO DEFEND ITS SOVEREIGNTY MUST DECREASE BY A CERTAIN AMOUNT.

DON'T THINK YOU CAN ALLOW THE JAPANESE TO COOK CHINA LIKE A FROG IN A POT BY LETTING THE TEMPERATURE RISE EVER SO SLOWLY.  YOU ARE NOT GOING TO COOK THE CHINESE ECONOMY BY ALLOWING CHINA TO LOSE ITS EXPORT MARKET ONE PERCENT BY ONE PERCENT FROM MONTH TO MONTH.  YOUR FAILURE TO DEFEND THE EXPORTS OF CHINA BY A REACTIVE AND COMMENSURATE DEVALUATION OF THE YUAN IS GOING TO BE RECOGNIZED AS THE CAUSE OF THE COLLAPSE OF THE CHINESE ECONOMY - AND THIS IS VERY SERIOUS.

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