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CHINA'S GROWTH IS COMING TO A HALT - WHEN WILL ITS CENTRAL BANK ACT? [Copy link] 中文

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Post time 2013-7-24 14:35:32 |Display all floors
The hemorrhage of Chinese export revenues due to Japan's wanton printing of its currency and resulting devaluation of the Yen, has turned from a trickle to a veritable torrent, measuring hundreds of billions of dollars.

When will the Central Bank of China defend its workers and manufacturers by competitively devaluing the Yuan against the Yen.

Or, is China now under the control of the Japanese government to keep losing export revenues that are transferred to Japanese exporters every day, every week, every month, from year to year, henceforth?


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Post time 2013-7-24 14:49:57 |Display all floors
Yuan will be toilet 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 ...

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Post time 2013-7-25 09:54:36 |Display all floors
This post was edited by abramicus at 2013-7-25 09:55

The Chinese Yuan has appreciated 34% against the US dollar while the Japanese Yen has depreciated instead.  The Chinese Central Bank could have protected China's exporters by merely following Japan's devaluation and avoided the slowdown in China's exports which is the major force behind its GDP growth.  It FAILED to act to defend Chinese jobs and manufactures, and soon, China's "dream" will be just that, a will-o-wisp of flowery words and artsy verses, as hundreds of millions lose their jobs and face starvation of their families.

China's Dream is food on the table and a roof over the head for everyone, every day, and every where.

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Post time 2013-7-25 10:04:12 |Display all floors
This post was edited by abramicus at 2013-7-25 10:08

Who Benefits from the Overvalued Yuan?

1.  Chinese companies that are planning to invest in foreign markets - because their Yuan investments will be converted into MORE DOLLARS that can buy more foreign assets, but these "MORE DOLLARS" are taken from China's own foreign exchange reserves, not from foreign banks or businesses, and represent a NET LOSS to the Chinese people.

2.  Foreign corporations that earned Chinese Yuans through their investments in China, which are planning to repatriate their earnings to their home countries - their Yuan earnings are transformed into MORE DOLLARS because of China's overvalued Yuan, again taken from China's foreign exchange reserves, at the expense of the Chinese people.

3.  Foreign exporters competing with Chinese labor and manufacturing, because (a) Chinese exports will be priced HIGHER than their exports and thus will lose buyers and their market share, and (b) furthermore, foreign imports into China, sold to China in dollars, will command a LOWER DOMESTIC PRICE in China, and force Chinese domestic producers to lose domestic buyers and their own market share.

THIS IS TREASON.

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Post time 2013-7-25 10:11:51 |Display all floors
together with the slowdown and banking crisis looming in China...............

yuan will surely depreciate in coming months.

just hope the depreciation of  the yuan will not cause an avalanche and crisis of confidence  in China.


and one more thing...................the depreciation of the yuan will not yield any increase in exports..................China products are already cheap enough but not good enough.
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 2013-7-25 13:53:06 |Display all floors
This post was edited by abramicus at 2013-7-25 13:57

No competitive measure that Chinese manufacturers adopt can overcome the pernicious effect of its own Central Bank aiding the Japanese in stealing China's export markets and invading China's domestic market through artificially imposed overvaluation of the Yuan.

This betrayal of the Chinese workers and enterpreneurs must stop, even if it aggrandizes the big wigs who have billions of Chinese Yuans that they want to invest abroad by allowing them to exchange more dollars for every yuan they export, courtesy of the foreign exchange reserve of the central bank of China.

More than a hundred billion US dollars have been given away for free to these big wigs who are investing Chinese Yuans in foreign assets, dollars that were earned by the sweat, toil and tears of the masses of the Chinese people.

Even worse, the Japanese companies are able to expatriate billions of dollars more than their average, due to the overvaluation of the Yuan by the Central Bank of China.  This is stealing Chinese savings under the nose of the Chinese Central Bank that is supposed to guard the savings or foreign exchange reserve of the Chinese people like a hawk.  Instead, it is acting like a lazy dog, sleeping on his watch, while the fox empties the chicken koop.

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Post time 2013-7-26 11:06:01 |Display all floors
This post was edited by DeDeMouse at 2013-7-26 11:19

I'm amaze by the misunderstanding reactions in this thread. China is nowhere under the control of the Japanese government. In fact, strong currency is a good thing for China. By that, China is no longer a low-labor-cost environment. Li Keqiang aiming for a stable growth. From an export driven economy to consumer driven economy. This makes China less dependent to US, EU and Japan. And makes Renminbi has more value as international exchange currency.

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