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This post was edited by abramicus at 2015-9-7 05:13|
The Japanese Yen (JPY) started devaluing against the Chinese Yuan (CNY) on November 11, 2012, starting from 12.72 JPY to 1.00 CNY. Using the topsy-turvy convention of currency traders, where the numerator is always 1, the CNY/JPY was 12.72.
By August 5, 2015, CNY/JPY was 20.10, equivalent to a 37% devaluation of the Japanese Yen against the Chinese Yuan! Did China complain about it? Did China demand Japan stop manipulating the currency exchange rate in order to obtain an unfair advantage over Chinese exports? Nobody complained, not even TRUMP. But the effect on Chinese exports is not reflected alone in the 37% devaluation of the Japanese Yen against the Chinese Yuan. It is reflected more accurately in the 58% appreciation of the Yuan against the Japanese Yen. It means that for the same product of equal quality, Japan could sell its product priced 37% below the Chinese product, while the Chinese product would be priced 58% above the Japanese product. This KILLS CHINESE EXPORTS instantly. Instantly!
Where is the People's Bank of China protecting Chinese manufacturers and workers in the face of this WAR OF ECONOMIC AGGRESSION BYJAPAN ON CHINA starting with Abe's ascension to power in 2012?
Trade space for time again? Or rather, trade China's foreign currency reserves for time? But time for what purpose? To win the war, or to lose it even more drastically in the end when China's foreign currency reserves drops below its foreign-currency-denominated debts, as is NOW HAPPENING?
China may not like a Chiang Kaishek, but it does not need a Wang Jingwei, who is trading space for ultimate surrender. At least, Chiang was trading space for time to win, which worked in the end, with the cooperation of Mao and Zhou. Now, China is trading its wealth for time, in order to achieve ultimate BANKRUPTCY in the end, as the stock market plunge already started doing, wiping out more than 4 Trillion Dollars of wealth stored in the shares of the stocks of China's most promising companies.
After the 2% devaluation of the Yuan against the Yen, from 20.10 Yen to 19.45 Yen for each Yuan, by August 14, 2105, Chinese products remain 49% overpriced compared to a similar product from Japan, and Japanese products remain 33% underpriced compared to a similar product from China.
So, who should be the one complaining about whom in the G20 finance ministerial meeting?
Instead of complaining about Japan's EGREGRIOUS PRICE WAR ON CHINA, waged by ABE, since 2012, China's interests were 'DEFENDED' by the Zhou/Zhu team through accepting Japan's attack as fait accompli, rather than a real CASUS BELLI, and instead binding China to a consensus of CHINA'S OWN MAKING, to not devalue against the Yen, in response to JAPAN'S INTENTIONAL DEVALUATION OF THE YEN AGAINST THE RENMINBI.
With DEFENDERS like this, who needs AGGRESSORS?
IS IT TIME FOR A CHANGE IN THE TOP LEADERSHIP OF CHINA, OR IS CHINA ALREADY "SOLD" TO JAPAN?