Author: abramicus

Another Benefit of China Devaluing the Yuan - Abenomics Begins Sinking and Fast! [Copy link] 中文

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Post time 2014-8-14 18:02:24 |Display all floors
THE SUREST WAY FOR THE YUAN TO BECOME AN INTERNATIONAL RESERVE CURRENCY IS TO SUFFICIENTLY DEVALUE THE YUAN SUCH THAT ITS PRODUCTS REGAIN THEIR PRE-EMINENT POSITION IN BOTH THE INTERNATIONAL AND THE DOMESTIC CHINA MARKETS.  THIS LEADS TO INCREASED PRODUCTIVITY OF CHINESE MANUFACTURERS.  

AND, THUS THE YUAN WILL BE LOVED BECAUSE IT CAN BE EASILY EXCHANGED FOR ALL KINDS OF PRODUCTS IN CHINA, RATHER THAN FEARED, BECAUSE OTHER COUNTRIES MUST ACCEPT IT ON PAIN OF REGIME CHANGE.

TURNING MACHIAVELLI ON HIS HEAD, CHINA CAN SAY, "IT IS BETTER TO BE LOVED THAN FEARED."

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Post time 2014-8-15 15:00:04 |Display all floors
just stop supplying rare earth to j.aps...and they will go bankrupt overnight~
kekeke~

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Post time 2014-8-15 16:49:55 |Display all floors
Abenomics is nothing but the Mortgage Crisis of 2008 extended to all sectors of the Japanese economy, based as it is on inflation of the economy by the wanton creation of fiat currency, that cheapens Japanese products in both the international and domestic markets, paid for with a reduction the purchasing power of the savings of the Japanese public.  There is no free lunch, like Abe's men project their program to be like.   When the purchasing power of the Japanese public further drops as a result of engineered inflation, the savers who are also the workers, will earn less than what they are being robbed of, i.e., the purchasing power of their savings.  The best way to illustrate this is when the boss gives discount coupons to customers to generate business, paid out of the pension funds of the employees.

Normally, this should have been paid for by the Japanese public.

However, with the Chinese central bank PBOC committing a national harakiri in revaluing the Yuan upwards, seemingly unilaterally, while the Japanese central bank BOJ is devaluing the Yen, this cost of reflation of the Japanese economy is being borne by the CHINESE MANUFACTURING SECTOR, which is being made to sacrifice either its profit margins or its international and domestic market share - TO BENEFIT JAPAN.

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Post time 2014-8-15 16:52:12 |Display all floors
This post was edited by abramicus at 2014-8-15 16:55

HOW CHINA CAN DEFINITELY MAKE THE YUAN AN INTERNATIONAL RESERVE CURRENCY

CHINA CAN MAKE THE YUAN AN INTERNATIONAL RESERVE CURRENCY, NOT BY REVALUING THE YUAN UPWARDS, BUT RATHER BY DEVALUING THE YUAN TO A LEVEL WHERE HER GROWTH IN GDP REMAINS THE HIGHEST IN THE WORLD, BECAUSE THE GROWTH IN GDP ASSURES HOLDERS OF THE YUAN THAT THE PURCHASING POWER OF THEIR YUANS WILL INCREASE OVER TIME, NOT JUST IN QUALITY AND QUANTITY OF GOODS AND SERVICES THEIR YUANS COULD BE EXCHANGED FOR ANY TIME THEY WANT, BUT ALSO IN THE VARIETY OF PRODUCTS THEIR YUANS COULD BUY.  

AS A RESULT OF THE ACCEPTABIITY OF THE YUAN AS A STORE OF VALUE FOR SELLERS OF ALL KINDS OF COMMODITIES, CHINA COULD EVEN END UP BEING A REFINER, PROCESSOR AND DISTRIBUTOR OF THE RAW MATERIALS IT CURRENTY IMPORTS, TO OTHER COUNTRIES THAT LACK SUCH REFINING, PROCESSING AND DISTRIBUTION INFRASTRUCTURES, SUCH AS PETROLEUM PRODUCTS.


THE WAY TO INTERNATIONAL RESERVE CURRENCY STATUS FOR THE YUAN IS NOT BY UNILATERALLY OVERVALUING THE YUAN, BUT BY DEVALUATION OF THE YUAN, AIMED AT SUSTAINING THE HIGHEST GDP GROWTH RATE AMONGST ALL MAJOR ECONOMIES - THE OPPOSITE OF WHAT THE ECONOMIC HIT MEN MAY BE ADVISING THE CHINESE MONETARY AUTHORITIES.

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Post time 2014-8-15 17:31:24 |Display all floors
WHO IS RESPONSIBLE?

WHO should be accountable for the mistakes of overvaluing the Chinese Yuan exchange rate against the US Dollar?

At the very minimum, a responsible exercise of political authority requires the lines of command and authority be made public, in order that proper accountability to the people can be implemented.

If the public does not know for sure who is responsible, how can such persons who affect their very livelihood be made responsible for listening to economic advisers who benefit Japan at the expense of Chinese manufacturers and the Chinese public?

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Post time 2014-8-15 18:14:32 |Display all floors
RECOVERING FROM THE 2008 GLOBAL MORTGAGE CRISIS, China's GDP annual growth rate reached a peak of 14% in June 2010, whereupon the PBOC began revaluing the Yuan from a previously steady 6.80 Yuan/Dollar exchange rate to a high of 6.0982 by early January of 2014, at which point China's annual GDP growth rate had dropped to a low of 7.4%.

Then, the PBOC devalued the Yuan tp 6.18 by April 2014, helping the economy shrug off its malaise, as the PMI, trade balance, and GDP all recovered starting in June 2014, and reaching a year high in July 2014.

LESSON:  THE YUAN EXCHANGE RATE IS THE SINGLE GREATEST FACTOR DETERMINING THE GROWTH OR CONTRACTION OF THE CHINESE ECONOMY.  ALL THE RECESSIONARY PRESSURES EXPERIENCED SINCE 2010 WERE MOSTLY THE RESULT OF PBOC YUAN EXCHANGE RATE POLICIES.  BUT WHY DOES CHINA NEED A RECESSION, WHEN EVERY COUNTRY IN THE WORLD IS TRYING TO GET OUT OF THEIR RECESSION?

IS CHINA THE NEW SANTA CLAUS OF THE WORLD BANKING ECONOMY, THE LARGESSE OF WHOSE BANKERS IS PAID FOR BY THE BLOOD, SWEAT, TOIL AND TEARS OF ITS 1.3 BILLION HARDWORKING PEOPLE?  HOW ABOUT A CHANGE IN JOBS FOR THE BANKERS, TO TAKE A JOB IN A MANUFACTURING PLANT FOR A YEAR, TO REALLY U-N-D-E-R-S-T-A-N-D HOW HARD IT IS TO MAKE A LIVING ON MAIN STREET???

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