Views: 2235|Replies: 13

China's Economy Is Sinking Like the Titanic as the PMI Sinks to 50.0!!! [Copy link] 中文

Rank: 8Rank: 8

Post time 2014-11-27 13:09:23 |Display all floors
The HSBC Markit Flash PMI on China's manufacturing on November 20, 2014, came to an ominous 50.0, below which China's manufacturing would be technically expected to have 0% growth.  Such pathetic leadership of the economy by the PBOC should have been overhauled long ago.  To patch up its incompetence, on November 21, 2014, the PBOC cut interest rates, and the stock market rebounded, for a short while.  

The Western media immediately focused on the question of how many more rate cuts the PBOC will have to make before the end of the year, or before summer of 2015, as if that were the real key to the manufacturing recession of China.

No, no, and no!  

Lowering the interest rate does not solve the problem.

Stopping the PBOC from using China's foreign currency reserves to buy up the Yuan is the real solution!  The Yuan has NO REASON WHATSOEVER to keep appreciating when every indicator of its economic growth is going south.  Even the net foreign currency reserve of China has been DROPPING, so how can foreigners be rushing in to buy up the Yuans to raise it to its extreme levels of 6.10 that just happened two weeks ago?  If foreigners are buying up the Yuans, China's net foreign currency reserve should be rising.  Instead, it dropped by more than 100 billion dollars between September and October!  The numbers do not lie.  The drop in China's foreign currency reserve in the context of the Yuan revaluing to its highest level in more than a decade points to the PBOC as the manipulator of its rise, most likely therefore, through wasting China's hard earned foreign currency reserve to buy back Yuans that it could have simply printed for 0.001% of the dollars used to buy them up.

THE PEOPLE'S BANK OF CHINA SHOULD BE STOPPED FROM GIVING AWAY CHINA'S HARD EARNED FOREIGN CURRENCY RESERVE TO FOREIGN COUNTRIES, ESPECIALLY JAPAN, WHICH IS DEVALUING ITS CURRENCY WHILE THE PBOC IS REVALUING IT UPWARDS.  THIS IS THE PERMANENT SOLUTION TO THE SELF-INFLICTED MANUFACTURING RECESSION HITTING CHINA, NOW PUSHED TO THE EDGE OF THE PMI PRECIPICE OF 50.0!




Use magic tools Report

Rank: 8Rank: 8

Post time 2014-11-27 13:17:27 |Display all floors
You getting worse my friend.
The Titanic is on the bottom of the sea.
China's history, with ALL its up and downs will never sink.

Use magic tools Report

Rank: 8Rank: 8

Post time 2014-11-27 13:30:12 |Display all floors
emanreus Post time: 2014-11-27 13:17
You getting worse my friend.
The Titanic is on the bottom of the sea.
China's history, with ALL its  ...

China's economy can be compared to the Titanic because it was just as strong, but with a lousy captain, it can end up at the bottom of the sea.  The comparison is to the Titanic while it was still afloat, not when it was at the bottom of the sea.  The captain of the Titanic was reportedly dining with some rich patrons while the Titanic was sailing straight into a known field of floating icebergs.  The many pings on the side of the hull of China's economy, its falling foreign currency reserves, its falling PMI, its falling employment rate, all indicate it is IN DANGER OF BECOMING LIKE THE TITANIC.

Now, go and report to your boss, that if it sinks, he will be fired.

Use magic tools Report

Rank: 1

Post time 2014-11-27 14:51:24 |Display all floors
I am sorry to hear this.  How long before China sinks to the level of Ethiopia?    Is there any hope left for China?

Use magic tools Report

Rank: 6Rank: 6

Post time 2014-11-27 15:08:11 |Display all floors
China need to get rid of the huge amount of foreign currency, mainly USDollars, since it is only worthless paper that is doomed to collapse sooner or later. Better invest in something with real value, more infrastructure, technology and of course natural resources.

Use magic tools Report

Rank: 8Rank: 8

Post time 2014-11-27 15:13:53 |Display all floors
total crap

China will cut rates, cut, cut, cut, then print, print, print
(beast ex machina)

Use magic tools Report

Rank: 8Rank: 8

Post time 2014-11-27 15:14:54 |Display all floors
wondering what the Swiss will do this weekend?

will they vote for 20% gold backing and repatriation?
(beast ex machina)

Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.