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CHINA IS RAMMING ITS ECONOMY AGAINST THE ICEBERG OF ITS OVERVALUED RENMiNBI [Copy link] 中文

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Post time 2014-11-14 11:13:59 |Display all floors
This post was edited by abramicus at 2014-11-14 11:40

Finally, the captain of the Chinese Titanic went full throttle revaluing the Yuan even higher to 6.10 during the APEC meeting, and instead of garnering praise and admiration, was greeted with doubts and worries about the future of China's once stellar and ascendant economy, now following the footsteps of the West into a self-engineered and self-sustained recession.

The PBOC has no way of disguising its manipulation of the currency market to make the Yuan appreciate past the level that its manufacturing base could sustain, i.e., letting the Yuan/Dollar exchange rate surpass the 6.11 absolute red line before systemwide failure begins its chain reaction.

With a dropping GDP annual growth rate, a PMI value close to 50.0 and barely keeping its nose above the water, and historic losses of its foreign currency reserve, to the tune of more than 100 billion dollars in just October alone, there is no reason anybody would think that the Yuan should continue to be valued higher than the dollar - just out of pure common sense.

That the PBOC is squandering the hard earned foregin reserves of China, and strangling the goose of the manufacturing sector that had laid all the golden eggs it is so proud of right now, is rationalized with the play line that buying the Yuans in the petro-market back with ever greater amounts of dollars will convince the world to adopt the Yuan as the next international reserve currency, which is so puerile and naive as to make one wonder where all the intelligence and talent that graced its corridors have gone in such a short while.

China's economy is like the Titanic guided by its own central bank captains straight toward the iceberg of its own overvalued Yuan, which will definitely destroy its manufacturing sector, just as Mao's ill-guided attempt to make farmers run coke ovens depleted them of the very implements they need to sustain their agriculture.  This time, in the hopes of making China's currency the next international reserve currency, the Chinese manufacturers will have to shut down their factories, and lay off millions of workers, until China runs out of dollars to purchase its own Yuan with, and the people run out of savings to feed their families with.  This is so sad, so very, very sad, that China's economy should be subjected to such self-inflicted torture and destruction.



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Post time 2014-11-14 11:59:54 |Display all floors
Overvalued? RMB is undervalued and PBOC is manipulating the value every day.

The market should value of RMB, not the communist party.

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