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HOW CAN PBOC JUSTIFY YUAN REVALUATION WHEN ITS FOREIGN RESERVES ARE FALLING??? [Copy link] 中文

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Post time 2014-10-19 18:28:07 |Display all floors
This post was edited by abramicus at 2014-10-19 18:38

Finally, the report card of the PBOC has reached an "F" for FAILED, as China's foreign reserves fell a whopping $103 billion in October 2014, dropping from 4.01 trillion to 3.89 trillion.

To make matters worse, the PBOC injected $32 billion US dollars into the banking system, to keep it on the ventilator, while keeping on tightening the noose around the neck of China's manufacturing sector, the Yuan Exchange Rate at an all time high of 6.12 Yuan/Dollar ratio.

The injection of money into the banking system is to paper over its policy failure, and its betrayal of the economy of China to benefit foreign manufacturers, particularly those of Japan, whose central bank has been devaluing the Yen while China's PBOC has been upvaluing it instead.

Almost all international bankers see the latest move of the PBOC as merely cosmetic (to fool the central leadership that all is well) and fundamentally dangerous, because it exacerbates the inflation that could soon follow.

THE ROOT OF CHINA'S ECONOMIC FAILURE IS THE OVERVALUATION OF THE YUAN BY THE PBOC, WHICH MAKES CHINESE PRODUCTS TOO EXPENSIVE IN DOLLARS ABROAD, AND TOO EXPENSIVE IN YUANS AT HOME, LEADING TO DECLINING VOLUME OF SALES, DECLINING PROFIT MARGINS, AND INCREASING UNEMPLOYMENT.

TO ANY RATIONAL MIND, THIS IS IRRATIONAL.

IT CANNOT BE A MISTAKE, BECAUSE IT IS TOO ELEMENTARY TO BE MISTAKEN ABOUT.  IT HAS TO BE ECONOMIC SABOTAGE BY HIT MEN IN POSITIONS OF TRUST AND POWER.  XI MUST STOP THIS HEMORRHAGING OF CHINA'S RESERVES, AND DIARRHEA OF CHINA'S JOBS, COUPLED WITH GRADUAL BUT EVER TIGHTENING STRANGULATION OF CHINA'S MANUFACTURING SECTOR, WHICH EXPLAINS WHY CORPORATE DEBT IS IN TROUBLE, BECAUSE COMPANIES CANNOT SELL THEIR PRODUCTS NOT DUE TO THEIR INEFFICIENCIES OR OVERCAPACITIES, BUT BECAUSE THEIR OWN CENTRAL BANK JUST MADE THEIR PRODUCTS OVERPRICED IN DOLLARS ABROAD AND OVERPRICED IN YUANS IN THE DOMESTIC MARKET.  IF CORPORATIONS ARE NOT PERMITTED TO MAKE A PROFIT BY THE PBOC, NATURALLY THEY COULD NOT SERVICE THEIR DEBTS, WHICH WILL LEAD TO A BANKING CRISIS.  THIS POLICY DOES NOT INCREASE CONSUMPTION EITHER, IF THE EXCUSE IS TO MAKE CHINA MORE DEPENDENT ON ITS DOMESTIC CONSUMPTION, BECAUSE JOBS ARE DISAPPEARING, AND CHINESE MADE PRODUCTS ARE GETTING TOO EXPENSIVE FOR THE ORDINARY WORKER NOW TO AFFORD.  

IT IS TIME TO DEMAND THAT ZHOU STEP DOWN BEFORE CHINA'S ECONOMY CRASHES!



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Post time 2014-10-19 18:35:52 |Display all floors
AND IF ZHOU DOES NOT STEP DOWN, DON'T BE SURPRISED IF EVERYBODY SELLS OFF ON CHINA'S STOCKS AND BONDS IN SHORT ORDER.

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Post time 2014-10-19 18:45:11 |Display all floors
This post was edited by abramicus at 2014-10-19 18:46

IN PROGRESS . . . CHINA'S GREAT LEAP BACKWARD!

WHAT WE ARE WITNESSING IS THE EQUIVALENT OF THE GREAT LEAP FORWARD, IN REVERSE, OR WHAT MAY BE CALLED IN HISTORY BOOKS, "THE GREAT LEAP BACKWARDS", AS CHINA SQUANDERS HER HARD EARNED DOLLAR RESERVES TO BOOST THE YUAN EXCHANGE RATE TO ASTRONOMIC LEVELS IN THE MISTAKEN BELIEF THAT CHINA'S CURRENCY WILL MAKE HISTORY AS THE MOST VALUABLE CURRENCY IN THE WORLD, WHILE ITS FACTORIES SHUT DOWN, ITS WORKERS GET LAID OFF, ITS 4 TRILLION DOLLAR RESERVES ARE SPENT TO BUY BACK YUANS WITH NOTHING TO SHOW FOR IT, AND ITS DEFENSE OUTLAY CRUMBLES TO DUST.

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Post time 2014-10-19 18:55:36 |Display all floors
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Post time 2014-10-19 18:57:15 |Display all floors
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Post time 2014-10-19 19:28:49 |Display all floors
coralbay Post time: 2014-10-19 18:57
Oh dear, demanding that a senior official in China step down?
Why are you challenging China's sove ...

You are worried for good reason, when people, not just myself, ask Zhou to step down.  Your freeloading days will soon be over, so will Japan's.  

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Post time 2014-10-19 19:35:30 |Display all floors
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