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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!