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This post was edited by abramicus at 2013-5-6 05:43|
THE SECOND TREATY OF SHIMONOSEKI OF 2013?
LI HONGZHANG WOULD FEEL ASHAMED HE WAS OUTCLASSED BY A MIGHTIER PEN THAN HE HELD IN HIS HAND.
The amount of export revenues lost will never appear as a transfer of wealth from China to Japan, because it was lost before it would have otherwise been earned, due to China's negligent defense or non-defense of its exchange rate in the face of such flagrant Japanese currency intervention.
But the amounts are far greater than what Li Hongzhang gave to Japan by virtue of the Treaty of Shimonoseki of 1895, which was 200 million taels of silver, later increased to 230 million taels of silver in exchange for not ceding the Liaotung peninsula to Japan (which included China's major naval base of Lushun, later taken over by the Russians and named "Port Arthur"). One kuping tael's silver content weighs 37.3 grams. Silver currently is $0.85 per gram. 230 million kupin taels has a present value in silver of $7.3 billion dollars. Of course, the time value of this amount over 118 years is a pretty large sum in present value, with an average interest of 5%, accounting for true borrowing costs and devaluations, of about 2.3 trillion dollars. So, much of present day Japanese prosperity was taken from China's blood, sweat, toil and tears, just counting that one sum alone. It took China more than a century to recoup this one single payment to Japan.
But in silver dollar terms, the present policy of allowing Japan to devalue the Yen against the Yuan by some 30.5% in the past 16 months, may have cost China many times the cost of the kuping taels paid to Japan of 7.3 billion dollars' worth. In fact, the present day transfer of wealth to Japan by virtue of losing export revenues before they were earned, due to the overvalued exchange rate of CNY TO JPY, set by the PBOC, may have already exceeded 1000% or ten times, that amount even as we speak.