Author: 468259058

Was U.S. Dollar printed too much compare with Chinese RMB? [Copy link] 中文

Rank: 8Rank: 8

Gold Medal September's Best Writer 2012

Post time 2011-4-6 09:55:44 |Display all floors
Originally posted by UYA at 2011-4-6 09:20
you also need to include population into your equation.
.

In the mainstream philosophy of traditional Chinese culture and the west culture, large population is good.
However, in the philosophy of present Chinese society, large population is a burden.

In the population detail analysis, Chinese is going to an old people society soon like the present Japan.
American would be still a young people society like the present India.

Use magic tools Report

Rank: 8Rank: 8

Gold Medal September's Best Writer 2012

Post time 2011-4-6 10:11:58 |Display all floors
Originally posted by 468259058 at 2011-4-6 08:34
Chinese experts' conclusions.
e.g.
China is suffering from imported inflation.
U.S. dollar is losing value, so the price of the commodities measured by U.S. dollar is rising.


The evidence can't support the conclusion.
I don't know whether it is right after we add the exchange rate of U.S. dollar/RMB in the past few years.

We should mesured the commodities prices by RMB, not measured by U.S. dollar.
If U.S. dollar losing vaule, the same time Chinese government impose a fix exchange rate on U.S. dollar, and then the imported inflation is the problem of the fix change rate policy, not from U.S. dollar itself.

[ Last edited by 468259058 at 2011-4-6 10:13 AM ]

Use magic tools Report

Rank: 4

Post time 2011-4-11 18:45:50 |Display all floors
@ #14

It's a question: why U.S. government need to print more money.
But did U.S. government print more money? From my comparsion, the answer is No.

It's just like a question: Why Chinese government need to print more money.
It's different from the question: Did Chinese government print more money?




My interpretation:


It's a question: why U.S. government need to print more money.

1. The US federal government does not print money.

At present the mechanism of Quantitative Easing looks as follows: the US federal government prints IOUs (subject to interest) and these IOUs are acquired by the Federal Reserve.

Federal Reserve buys government IOUs from newly created US dollars. This is only the Fed (and the US banking cartel) to have the power to create US dollars out of nothing. The US federal government is only a client of this cartel.

The Federal Reserve is a private cartel. Officially we do not even know names of owners of this industry. This cartel is completely independent from the USA and has completely different interests than interests of American sheeple.



But did U.S. government print more money? From my comparsion, the answer is No.

2. Quantitative Easing is flourishing. Example: (link)

In my opinion Fed enormous support for bankrupt US federal government does not have to result in hyperinflation right now.

Fed creates only big force money M0. US banking cartel creates debt ?reduction of their activity may even keep total money supply stable or reduced.

Quantity theory of money is only Anglo-American-Jewish crap. It does not work. Where is money injected ?this is crucial point. Creation of mortgages increases housing prices. Money injected into stock market inflates securities prices, etc.



It's just like a question: Why Chinese government need to print more money.

3. As you point out ?US monetary expansion inflates commodities prices. In this way Fed may export  USD inflation worldwide.

China has to protect its interests. Wall Street speculators have a lot of USD. Excessive supply of dollars in international financial markers leads to the appreciation of RMB. This appreciation may be destructive for China since USD is still a global currency. In order to prevent this appreciation China creates RMB and buys USD. Then China buys worthless US Treasury papers.

This is another stage of worldwide inflation imported from the US.

Chinese government (precisely: Bank of China) did not want to print money. It had to pint money to defend Chinese interests.

Use magic tools Report

Rank: 8Rank: 8

Post time 2011-4-11 20:03:44 |Display all floors
Quantity theory of money is only Anglo-American-Jewish crap

It was either that or go bust and they couldn't allow the biggest banks to do that.   The price for this is inflation but it was the only way.

Use magic tools Report

Rank: 6Rank: 6

Post time 2011-4-11 20:47:39 |Display all floors
China printed much more in relative terms than the US did (and for about the same amount absolutely). So the inflation is merely due to the fact that China printed so much money - no other reason.

China printed 17,5 trillion Yuan in the past two years and Chinese government spent 5 trillion Yuan on boosting the economy. China's GDP is at for about 30 trillion Yuan.

But, and that's crucial:
thanks to this measures, Chinese economy could go on developing on a steady pace, only few people lost their jobs, everyone could live his or her life the way he or she is used to. Compared to the US, where millions of people lost their jobs, some even their house!
Of course, this stability has a price - inflation. But I guess most Chinese would be happy to pay it if they knew what would have happend instead.

What can China do to prevent both, recession and inflation, during the next crisis?
I guess the best would be if China would remember its socialist roots and introduce unemployment benefits.
Like this, people would still lose their jobs during their crisis - but they wouldn't care so much, because they'd still get paid a part of their salaries until they've got a new job after the crisis.

Use magic tools Report

Rank: 8Rank: 8

Gold Medal September's Best Writer 2012

Post time 2011-4-12 20:31:30 |Display all floors
Originally posted by 4_boby at 2011-4-11 18:45
Quantitative Easing
.

Quantitative Easing

So far I don't comprehend Quantitative Easing yet.

Whether some money supply come from traditional way, or some come from new way, such as Quantitative Easing, We can still do the comparsion of the ratio: Money supply/wealth.

Maybe here, the Money supply not measured by M2, maybe M0, or M1.

Use magic tools Report

Rank: 8Rank: 8

Gold Medal September's Best Writer 2012

Post time 2011-4-12 20:39:06 |Display all floors
Originally posted by Everynowhere at 2011-4-11 20:47
China printed 17,5 trillion Yuan in the past two years and Chinese government spent 5 trillion Yuan on boosting the economy. China's GDP is at for about 30 trillion Yuan.
But, and that's crucial:
thanks to this measures, Chinese economy could go on developing on a steady pace, only few people lost their jobs, everyone could live his or her life the way he or she is used to. Compared to the US, where millions of people lost their jobs, some even their house!
Of course, this stability has a price - inflation. But I guess most Chinese would be happy to pay it if they knew what would have happend instead.
.

What the consequence of the huge inlfation?  a huge disaster?
the same thing in Zimbabwe,  in Russia just after commuist Party government collapsed, In German of 1920s?  

+++++++
If China don't printed so much money, What would happen?
Would Chinese economy collapse? Is China so fragile before a economic crisis in U.S.A?

Where has so much money gone? The previous trillions of bad debts of government disappear?

Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.