Author: abramicus

DENG MOVED CHINA FORWARD WITH HISTORIC DEVALUATION FROM 5.74 TO 6.37 IN 1992 [Copy link] 中文

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Post time 2015-1-27 15:45:41 |Display all floors
Revolutionar Post time: 2015-1-27 01:27
There is a flight of capital out of China and yuan will naturally come down in coming months...... ...

This administration will be remembered in Chinese history as the time when Capital Flight became a giant monster, not by direct transfer of dollars abroad, but by borrowing loans denominated in dollars from foreign banks, dollars that are parked abroad, without ever having set foot on China, to the tune of two trillion dollars in a mere span of 2 short years!

The PBOC should have stopped it, but did not.

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Post time 2015-1-27 15:48:19 |Display all floors
Censored again.

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Post time 2015-1-27 15:49:31 |Display all floors
Capital flight in the form of taking out dollar-denominated loans, and keeping the borrowed dollars abroad, to the tune of 2 trillion dollars in the past 2 years -- historic in proportion!

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Post time 2015-1-27 18:46:28 |Display all floors
abramicus Post time: 2015-1-27 15:49
Capital flight in the form of taking out dollar-denominated loans, and keeping the borrowed dollars  ...

and they are all roasted ready for dinner if they have US$ liabilities against yuan assets.



I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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Post time 2015-1-28 16:36:05 |Display all floors
Revolutionar Post time: 2015-1-27 18:46
and they are all roasted ready for dinner if they have US$ liabilities against yuan assets.

Absolutely.  China's 3.89 trillion dollars of currency reserve has been emptied of 2 trillion dollars by the newly borrowed dollar-denominated debts incurred by every and any person, business or corporation trying to take advantage of the overvalued Yuan to convert their earnings or assets (in Yuans) into the most amount of dollars, by borrowing dollars against their assets in China.  China's real foreign currency reserve has shrunken by some 60% in a mere 2 years to only a little over 1 trillion dollars, if its dollar-denominated liabilities are subtracted from it.

White collar crimes are the hardest to catch, or rectify, as the 2008 Subprime Mortgage Meltdown demonstrated.  

This is China's equivalent of 2008.

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Post time 2015-2-1 15:04:02 |Display all floors
China's manufacturing PMI for January 2015 dropped below 50.0, to 49.8 signaling the beginning of RECESSION starting with the strongest sector of China's economy, its manufacturing sector.

Reluctantly, the PBOC allowed the Yuan to devalue to 6.2506 on 2/1/15, which is still a far cry from the 6.50 Yuan/Dollar ratio needed to successfully revive China's economy, half-strangulated to death by the Yuan overvaluation, and half-maintained-alive by the creation of more credit and fiat money in Yuans, when the only solution that works is for the PBOC to cease and desist from buying up Yuans with China's hard earned dollar reserves.

In contrast, Japan, by devaluing the Yen, has increased its exports by 11% in January 2015.

The PBOC should stop leaving China's export revenues on the table for Japan to pick up.

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Post time 2015-2-2 18:16:59 |Display all floors
6.2599 Yuan/Dollar on 2/2/15 - too slow, needs more speed.  Somewhere around noon, massive buying of Yuans with Dollars took place in whole tranches that moved the Yuan exchange rate to 6.2412, but it failed, and the Yuan continued to devalue as if nothing had happened.  

Which foreign banks are using their dollars to buy up Yuans, if it is not the PBOC that is doing it?

Are we in the midst of an economic WWIII, currently targeting China's manufacturing sector, like an Economic Pearl Harbor?





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