Shame, leaving millions of dollars of export revenue of Chinese manufacturers on the table for Japan to pick up again.
Now, it's official, China's manufacturing PMI is in recession with a reading of 49.7. The PBOC is supposed to be the guardian of the economy. Instead, by overvaluing the Renminbi, it allows the Japanese rob its vaults of the Laobaixing's hard earned dollars.
The PBOC's overvaluation of the Renminbi is strangling China's manufacturing sector as surely and as severely as the hangman's noose. Money supply is not the problem, and thus, is not the solution. Exchange rate overvaluation is the problem, and the devaluation of the Yuan to 6.50 Yuan/Dollar exchange rate is the solution, which is most easily achieved by BANNING the PBOC from using its dollar currency reserve to buy up Yuans, until the exchange rate has dropped to 6.50 Yuan/Dollars.
China has a history of severe currency manipulation. Which helps China and hurts America. It pays for China's militarization, which threatens our allies.China has a history of severe currency manipulation. Which helps China and hurts America. It pays for China's militarization, which threatens our allies.
Year 1984 2 Yuan to 1 dollar
Year 1986 approx 3.75 Yuan to 1 dollar (manipulated)
Year 1990 approx 5.75 Yuan to 1 dollar (manipulated)
Year 1994 approx 8.75 Yuan to 1 dollar (manipulated)
Year 1995 approx 8.50 Yuan to 1 dollar (manipulated)
Year 2005 Manipulated free float
Year 2008 Floating stops.
Yuan is in the 5 to 6 Yuan to 1 dollar range since 2008
bushier Post time: 2015-3-1 10:42
Why did China need to devalue the yuan in 1994 - 8.75 Yuan to 1 US dollar - and result in a flood ...
Deng felt the need for China to grow its GDP in order to lift up the standard of living of its people, in order to afford the infrastructure that allows further growth of the domestic economy, and in order to afford the defense outlays to protect China from foreign aggression. The result of his further devaluation of the Yuan was to propel the GDP growth rate to 14%+, a feat that has never been matched in all of China's history, and sustain that growth for the next twenty years, which is why China today has nearly 4 trillion dollars of foreign currency reserves, instead of owing foreign countries that much instead. The current PBOC policy has forced many Chinese investors and businesses to borrow more than 2 trillion dollars to hedge against the future devaluation of a Renminbi whose high exchange rate they all know cannot be sustained either by the manufacturing sector, nor by even the current 3.8 trillion dollars of reserves held by the PBOC. This rapid loss of foreign currency reserve by means of an anti-manufacturing policy of the PBOC is the equivalent of a foreign army plundering China's imperial palace and looting its treasures in broad daylight.