Author: abramicus

CHINA'S BID TO BECOME AN IMF RESERVE CURRENCY IS A FALSE GOAL. [Copy link] 中文

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Post time 2015-5-4 06:32:18 |Display all floors
DID WHAT WE THOUGHT WAS THE FUTURE, HAPPEN YESTERDAY?

The above news report could almost not be found at all in the Western media, and seemed to have been reported by the Voice of Russia, and if true, may signify a major change in world affairs.

This could explain all the wars and oil price manipulations that transpired in 2014, and the riots and rallies in Brazil demanding impeachment of its president as well.  

This may well be the epic struggle between two kinds of global reserve currencies, one based on value and trade that guarantees stable purchasing power of currency reserves for all times, and the other based on fiat and power that provides security to governments willing to accept its currency, and instability otherwise.  Whichever wins determines the new world order.

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Post time 2015-5-4 08:54:26 |Display all floors
Who is this guy abramicus posting all the crap about China's yuan reserve currency?  You don't understand even the basics of the topic; you are simply looking at the micro-economics rather than macro; and you're even getting the micro aspects wrong.

China knows exactly what it's doing in their reserve currency plans and it's a sound long-term plan.
The USA has trillions of US dollars in reserve currency outstanding that they could never redeem because the USA is broke/destitute/poor/insolvent.  If several countries suddenly tried to redeem their U.S. dollar reserve currency holdings, then the USA would immediately default and the same is true for the U.S. dollars held as American Treasuries; the USA would default if several countries tried to redeem their Treasuries.  China does not seem interested in short term issues because they are prudently planning the future.  

China will survive and thrive when the USA defaults.

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Post time 2015-5-4 15:34:09 |Display all floors
canadianpaul Post time: 2015-5-4 08:54
Who is this guy abramicus posting all the crap about China's yuan reserve currency?  You don't under ...

Stupid comment.

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Post time 2015-5-4 15:51:37 |Display all floors
FURTHER RESEARCH HAS SHOWN THAT THE "SACRIFICE THROW" MENTIONED BY PETER KOENIG IS HYPOTEHTICAL, AND THE SPEECH SUPPOSEDLY MADE BY XI WAS COMPLETELY IMAGINARY.

THIS SHOWS HOW ALARMED OUR FOREIGN DISINFORMATIONISTS ARE THAT THEY ARE ACTIVELY TRYING TO MISLEAD READERS INTO ASSUMING THAT CHINA MUST CONTINUE TO OVERVALUE THE YUAN IN ORDER TO SUPPORT THE BRICS DEVELOPMENT BANK, AND ITS SUPPOSED NEW RESERVE CURRENCY OF "BRICSOS".

ALL OF THIS PROVED TO BE WESTERN DISINFORMATION.

THE LESSON FROM THIS ATTACK IS THAT THEIR GOAL IS TO KEEP CHINA ON THE TRACK OF CONTINUING TO OVERVALUE THE YUAN.

CHINA MUST AVOID THE "CURE" EXPECTED BY THE RISE IN THE STOCK MARKET, OF LOWERING THE INTEREST RATE OR BANK RESERVE RATION, BECAUSE THIS WILL ROB THE SAVINGS OF THE PULBIC, AFTER THE FIRST PHASE OF OVERVALUATION OF THE YUAN HAS ROBBED THE FOREIGN CURRENCY RESERVES OF CHINA BY CLOSE TO 500 BILLION DOLLARS TO DATE.  DO NOT MAKE A BAD SITUATION WORSE.  THE CURE IS TO PROHIBIT THE PBOC FROM BUYING YUANS WITH ITS FOREIGN RESERVES UNTIL THE YUAN EXCHANGE RATE IS 6.50 CNY/USD.

THIS IS THE RATIONAL SOLUTION.  AS FOR CANADIANPAUL, HE CAN EAT DUST FOR ALL I CARE.

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Post time 2015-5-4 16:10:20 |Display all floors
CHINA'S MANUFACTURING PMI INDEX IN APRIL DROPPED TO 48.9, AND IMMEDIATELY, THE STOCK MARKET IN CHINA JUMPED UP IN EXPECTATION THAT THE GOVERNMENT WILL LOWER INTEREST RATES OR REDUCE THE BANKING RESERVE RATIO - WHICH CHINA MUST NOT FALL FOR!!!

REDUCING THE INTEREST RATE LEADS TO INFLATION, WHICH ROBS THE PURCHASING POWER OF THE SAVINGS OF THE PUBLIC, IN ORDER AGAIN TO SUPPORT THE OVERVALUED EXCHANGE RATE OF THE YUAN.

THIS KIND OF ROBBERY OF THE PERSONAL SAVINGS OF THE PUBLIC AFTER ROBBING THEIR FOREIGN CURRENCY RESERVES ADDS INSULT TO INJURY, AND MAKES THE LOSSES OF THE CHINESE ECONOMY EVEN WORSE THAN IS PRESENTLY THE CASE.

THE SOLUTION TO THE DROP IN THE MANUFACTURING PMI OF CHINA IS TO DEVALUE THE YUAN TO 6.50 CNY/USD AS SOON AS POSSIBLE, AND THIS IS VERY EASY TO ACCOMPLISH - JUST PROHIBIT THE PBOC FROM BUYING YUANS WITH ANY FOREIGN CURRENCY UNTIL THE EXCHANGE RATE IS 6.50 CNY/USD, BECAUSE THE REST OF THE WORLD BELIEVES THE YUAN IS OVERVALUED, AND THEY WILL BRING DOWN THE EXCHANGE RATE OF THE YUAN, WITHOUT CHINA LIFTING A FINGER.  THIS SHOULD BE DONE IMMEDIATELY, TO PREVENT THE DEFLATION OF CHINA'S MANUFACTURING SECTOR FROM ACCELERATING, AND LEADING TO FACTORY CLOSURES AND DEFAULTS ON DEBTS, WHICH LEAD TO BANK FAILURES AND MASS UNEMPLOYMENT.  THE TIME TO ACT IS NOW, BEFORE THE SHIT HITS THE FAN, AS INTENDED BY THESE ECONOMIC HIT MEN, BEING CAMOUFLAGED AT THIS TIME BY FOREIGNERS LIKE CANADIANPAUL AND HAILCHINA, WHO WANT CHINA TO HOLD OFF DEVALUING THE YUAN UNTIL THE AVALANCHE HAS ALREADY BEGUN.

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Post time 2015-5-4 16:31:54 |Display all floors
If China wants to save the manufacturing sector, it must not sacrifice the personal savings of the public by lowering the interest rate which causes inflation, that eats away the purchasing power of the Yuan, but rather it must sacrifice the Japanese interest in the overvalued Yuan, end the absurd overvaluation of the Yuan that benefits nobody but Japan, and bring the Yuan exchange rate down to 6.50 CNY/USD overnight.  This will save the manufacturing sector, preserve China's export market, safeguard the personal savings of the public, and end the looting of China's foreign currency reserves and transfer of China's export earnings to Japan, immediately.


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Post time 2015-5-4 17:58:11 |Display all floors
For any currency to be a reserve, that currency must be able to command world status economic, banking and financial production engine power. Without it, it will be disaster. US could because it imports more than half of the raw materials of the world and produces more than one fifth of the total finished output. For China, that is not for the moment. So, please do not dream of it. Further, US paper notes are most chased after by the whole world! Just try to change it will be more than difficult. Unless and until US economy could not recover for few consecutive decades, the world has one choice for reserves, that is greenback!

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