Author: abramicus

China Must Let the Yuan Devalue to 6.50 As Soon As Possible. [Copy link] 中文

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Post time 2014-12-16 16:37:08 |Display all floors
This post was edited by abramicus at 2014-12-16 16:38

China's Manufacturing Sector Is Being Choked to Death by the Overvaluation of the Renminbi

The December manufacturing PMI of China dropped below 50.0 to 49.5, officially signaling that China's manufacturing sector is already in RECESSION.

The Overvalued Yuan, caused by the PBOC, has made goods manufactured in China too expensive abroad in dollars, and too expensive at home in yuans, leading to the suffocation of the factories whose products are overpriced suddenly abroad and at home.  This will never increase consumption, by the way, but rather will make Chinese products too expensive to consume instead.

It is time for the PBOC to put the interest of China above that of the international banking cartel, and devalue the Yuan to 6.50 Yuan/Dollar.  All the PBOC has to do is NOTHING.  Just let the market supply and demand bring down the exchange rate of the Yuan to 6.50 Yuan/Dollar exchange rate.

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Post time 2014-12-16 17:03:08 |Display all floors
more than one hold the same opinion as you .
so the simplest and the most efficient way is to call premier li and tell him about it ..

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Post time 2014-12-17 15:28:06 |Display all floors
This post was edited by abramicus at 2014-12-17 15:32
Dacarys Post time: 2014-12-16 17:03
more than one hold the same opinion as you .
so the simplest and the most efficient way is to call p ...

Absolutely, I believe there are many out there who hold the same opinion, because truth has a way of making itself known to people far apart from each other, yet they all see the same light.

It seems they are AFRAID of touching the cartel behind the hijacking of China's economy and making it serve the interests of foreign powers, including Japan, where, by its simultaneous devaluation of the Yen, as the PBOC revalues up the Yuan, a huge portion of China's would be revenues in exports IS automatically left on the table for Japan to pick up.  And a huge portion of China's own domestic market is taken away from domestic manufacturers who cannot price their goods competitively against the Japanese and other foreign manufacturers enjoying the overvaluation of the Yuan, and able to price their goods below the cost of Chinese producers.

So much for the ballyhoo about rooting out corruption . . . China's 4.1 trillion dollars of foreign reserves is already being cleaned out very rapidly . . . openly, in September and October to the tune of almost 200 billion dollars in the form of capital flight . . . covertly, in the past two years in the explosion of China's foreign-currency denominated debts that sprung from nothing to a whopping 1.5 trillion dollars, all of which have to be paid through withdrawals from the PBOC's foreign currency reserves.  Just the two items have already taken out 1.7 trillion dollars from China's foreign currency reserves, which is now effectively worth only 2.4 trillion dollars only.  But if you count the actual cost of the debt service for foreign-currency-denominated loans in terms of the actual cash (dollar) flow over the term of the loan, the 1.5 trillion dollars of debt to foreign banks is equivalent to a claim of about 3.5 trillion dollars on the assets of the PBOC's foreign currency reserve.

On top of this, all future revenues of the Chinese manufacturers are eliminated by means of the overvalued Yuan, and this LOST OPPORTUNITY COST is going to be shaved off from China's annual  $2.21 trillion dollars of its total exports, so there is even more fat that they can shave off the Chinese golden ham each year by revaluing the Yuan, than by the mere plundering of its 4.1 trillion dollar foreign reserves, that as demonstrated in the earlier paragraph is practically all under some form of lein to foreign banks by now.

Only a Chinese mastermind can CREATE such a gigantic enterprise.

Forget the China Dream, we can already compute that the Chinese piggy bank is virtually broke by now.




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Post time 2014-12-18 15:25:34 |Display all floors
Miracle!  The exchange rate of the Renminbi broke through to 6.21 Yuan/Dollar for one day.  You can see immediately the hand of the PBOC in stopping the devaluation of the Yuan as it plateaued right after the devaluation.  Someone is busily buying the Yuan again with an almost infinite capital of dollar reserves.  You know that buyer is a strong player, because only a strong player, like a central bank, can set the price and keep it at a narrow band.

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Post time 2014-12-19 16:51:41 |Display all floors
Miracle Day 2!  The Yuan broke through 6.22 Yuan/Dollar.  The miracle is not that it did.  The miracle is that it did not go all the way to 6.30, as all private currency traders will tell you is where the Yuan should be, but is being held back, by the PBOC, wasting China's hard earned dollar reserves to buy pieces of paper it could have printed for peanuts.  Time for the PBOC to call it quits and let the Yuan devalue to its market clearing price.  Why spend hundreds of billions of hard earned dollars to keep the Yuan overvalued, which kills off China's manufacturing sector more effectively than a Japanese invasion of China.



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Post time 2014-12-19 16:59:02 |Display all floors
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Post time 2014-12-19 17:38:59 |Display all floors
PUTIN HAS A MESSAGE FOR CHINA ABOUT CURRENCY REVALUATIONS - IT'S A WASTE OF HARD EARNED FOREIGN CURRENCY RESERVES TO USE THEM TO BUY YOUR OWN CURRENCY.

Putin has a real time lesson learned on the ropes for the PBOC that he just said yesterday, he scolded the Russian Central Bank saying it should not have wasted Russia's foreign currency reserve to prop up the Ruble - in spite of the Ruble having plunged 50% - which tells you what other "daft financial experts" agree on.  It is stupid and futile to try to save the Ruble by squandering some $80 billion hard earned dollars to buy back one's own currency that one can print for peanuts!

And yet, the PBOC does this day after day . . . squandering China's dollar reserves to buy back Yuans so that it will appear as if China is getting richer and richer by the day.  

It would have been OK if China indeed is getting richer by the day with this spending of dollars to buy yuans, but the HARD REALITY IS THE VERY OPPOSITE, the PBOC can only make China poorer by the day when it keeps trying to revalue the Renminbi, when China becomes actually richer if the PBOC will only allow the Yuan to devalue to a point where China's manufactured products become cheaper than foreign goods abroad and inside China.

Of course, the Western media tried to spin the story in such as way that the message is lost on other countries, like China, that needs to know this fact of all facts.  

Western media said Putin was angry at the Russian Central Bank for not spending MORE foreign currency reserves at an earlier stage and at a faster rate to rescue the Ruble.  Oh really?  That was not what Putin said.  He said the very opposite - stop wasting your foreign currency reserves to buy your own currency that you can simply PRINT for PEANUTS.

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