- Registration time
- Last login
- Online time
- 1223 Hour
- Reading permission
This post was edited by abramicus at 2014-11-21 18:51|
This is the only Chinese forum that accurately warns about the dangers of adopting Western models of economics and finance in the management of China's economy. Many of the assumptions and rules of Western economics are contingent on the acceptance or cooperation of government, industry, and banking, based in large part in the West. For China to use their models means China is accepting its dependency on their acceptance and cooperation to achieve its goals, which is self-deceiving and dangerous to the welfare of the Chinese people.
The current attempt by the PBOC to "buy its seat" as an international reserve currency by using its now less than 4 trillion dollars of foreign currency reserve to buy up its own Yuans is not only an exercise in futility. It is an exercise in stupidity. Not being based on reason, it could be based nevertheless on treason.
China's manufacturing sector has been hit very hard by its own central bank exchange rate policy of revaluing the Yuan ever higher, even as China's goods and services become overpriced in dollars when exported, and also overpriced in Yuans when being sold inside China. To say that all this REAL loss of income, jobs and social stability is compensated for by China's "increasing chance" of making the Yuan an international currency is not only UNREALISTIC, but taken from the standpoint of responsible and accountable management of the nation's wealth, irreponsibile. China is already losing its shirt in the past several months, with its foreign currency reserve dropping even as it was revaluing the Yuan, a clear proof that the Yuan is rising not because of foreign demand for the Yuan, which would result in an increase, not decrease, in the foreign currency reserve, but because of currency manipulation by the Chinese monetary authorities of selling its dollars for Yuans, squandering hard earned foreign currencies for paper and ink that it could have printed for 0.001% of the cost of its drop in dollar reserves.
China's being destroyed from within by Economic Hit Men.
At some point, if China keeps using up its foreign currency reserve to buy Yuans, instead of foreign assets, it will have to devalue, but why do it the most expensive way, when all the PBOC needs to do is to stop using its dollar reerves to buy up the Renminbi and let it float downward, as it must, of its own accord. The myth is that the market dictates a higher Yuan, and if so, let the world buy all it Yuans it wants, in exchange for more dollars and euros! Why bother to work when the world will pay you for printing Yuans? Isn't that the cheaper way to become an "international reserve currency"? That would be like killing two birds with one stone - earn another 10 trillion dollars by printing more Yuans and not having to export anything, and still, have the Yuan become an international reserve currency - why should Chinan spend dollars to buy Yuans instead?