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This post was edited by abramicus at 2015-8-17 17:25|
WHERE HAVE ALL THE HUNDREDS OF BILLIONS OF DOLLARS GONE?
Finally, as if to show accountability, someone from the PBOC told the press that from now on, the Yuan will float according to market supply and demand, and only at the extremes will the PBOC intervene, either to raise or lower the Yuan exchange rate.
And so, we watched the Yuan fluctuate, as it should, or trend up or down, at the least, but there was neither fluctuation or trend.
If something does not fluctuate or have a trend, it has to be dead. It stayed at 6.3945 or thereabouts, unlike on August 10 & 11, when it really trended down, reversed by the PBOC's directed sale of dollars, to buy up the Yuan, etc.
But we all know the Yuan is not dead.
It is simply being fixed all over again at an overvalued exchange rate, again requiring the spending of China's dollar reserves, throughout the trading day, to keep the Yuan overvalued, even if by less than a week ago, nevertheless continuing to be spent in the name of buying up Yuans that China could print for peanuts. So much for the brief glimmer of accountability. It turned out to be not. The spending of China's foreign reserves goes on, under the excuse of defending the Yuan, when it should have been allowed to fall naturally, as dictated by market forces. The loss of hundreds of billions of dollars of China's foreign currency reserves remains unexplained and its supposed benefits unaccounted for. The keystone of anti-corruption campaigns, the stopping of losses to the country even long before the culprits are identified, remains unsatisfied.