Author: 468259058

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

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Post time 2011-4-12 20:48:20 |Display all floors
In forum, now many Chinese said that a financial crisis took place in U.S.A and the other developed nation.

At last China printed the relative largest amount of money in the world.

Now the developed nation is recovering from the recession.

But China is going into a crisis, a huge inflation - the soaring assets prices, the soaring wages, the rising costs of companies, and miss an opportunity to appreciate RMB.  

China did a relative good work in the Asian financial crisis in the late 1990s. But China did a relative bad work in the World fiancial crisis in the late 2000s.

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Post time 2011-4-14 04:26:23 |Display all floors
Originally posted by 468259058 at 2011-4-6 08:27
Chinese experts and many Chinese experts said U.S. government printed too much money.


US$ 600 billion the US Fed printed.

Try to imagine the pile of notes of it. Is this amount seems small to you?

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Post time 2011-4-20 14:29:03 |Display all floors
# 22


Brush-up your figures. Economy is no 'what I wish and would like game' but consists of hard facts.

Here are some up-to-date-figures :

China's M2, a broad measure of money supply, was RMB 75.81 trillion at the end of March this year, up 16.6% compared with a year ago, according to statistics released by the People's Bank of China. M1, which includes deposits in withdrawal-on-demand accounts and cash in circulation, had risen 15% year on year to RMB 26.63 trillion at the end of March.

Not nearly close to what you've posted.

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Post time 2011-4-22 11:11:25 |Display all floors
Originally posted by satsu_jin at 2011-4-20 14:29
Brush-up your figures. Economy is no 'what I wish and would like game' but consists of hard facts.

Here are some up-to-date-figures :

China's M2, a broad measure of money supply, was RMB 75.81 trillion at the end of March this year, up 16.6% compared with a year ago, according to statistics released by the People's Bank of China. M1, which includes deposits in withdrawal-on-demand accounts and cash in circulation, had risen 15% year on year to RMB 26.63 trillion at the end of March.

Not nearly close to what you've posted
..

You talked about year on year growth.  2010/2009.

I talked about 20 year's growth..2010/1990..

heheehe..Please double check.

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Post time 2011-4-24 19:10:24 |Display all floors
Greed is definitely bad for long term survival of the civilization. It is a no, no. A very distinct features of Chinese civilization long lasting is due to Confucius teaching of living moderately and not greed living. Shaolin and Taoist are all practicing non-greed driven living.

Western and American society prosperity is build on greed and by looting other people land and treasures.  After looting Algeria, they are now trying to loot Libya. The west are not interested to loot North Korea because North Korea don’t have oil or gold. This never last and will collapse soon because the west have run out idea how to loot.

The modern western economic prosperity is build like a financial giant Ponzi game of money printing. The American and west is now leveraging China hardworking workers to sustain these giant Ponzi game of money printing. China leaders are unfortunately too stupid and unable to see the American grand scheme of global financial games.


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http://www.dailyfinance.com/2011 ... e-outsmarted-china/


Currency Wars: How Ben Bernanke Outsmarted China

By Charles Wallace Posted 11:00AM 01/24/11 Economy, Currency


For years, U.S. officials have ritually complained that China's currency is undervalued and that the country should let it appreciate. But President Obama soft-pedaled the problem at the White House summit with President Hu Jintao last week.

Why? Washington is quietly celebrating that fact that Fed Chairman Ben Bernanke has outsmarted the Chinese government, forcing it to revalue its currency or face increasing domestic unrest.

"No U.S. official will admit this, but Bernanke has succeeded in breaking the Bank of China in the same way George Soros broke the Bank of England in 1992," says James Rickards, senior managing director for merchant bank Tangent Capital in New York. "The U.S. has won the first round of the currency war."

He adds: "People forget that one of the factors that caused the Tiananmen Square protests of 1989 was popular discontent with inflation, and the Chinese leadership doesn't want anything like that."

China Gets "Hot Money"

How did Bernanke pull off the magic trick that previous U.S. administrations were unable to accomplish? Last fall, he announced a program of quantitative easing -- a federal bond-buying program -- which was targeted, he said, at raising U.S. inflation to head off possible deflation.

But in reality, it had a completely different result: Money poured out of the U.S. and flowed into China. According to Adam Wolfe, research analyst at Roubini Global Economics, the amount of so-called hot money entering China reached $1 billion a day in 2010.

Coming on top of China's massive trade surplus, those inflows presented a dilemma for the Bank of China. In order to maintain its exchange rate with the U.S. dollar, which was fixed after 2008, the Chinese government bought dollars from exporters and banks and printed local yuan for each dollar it purchased.

But last fall, the supply of yuan skyrocketed, increasing by 19.7% in December, Wolfe says. Increasing the money supply causes prices to increase as more money chases fewer products. Chinese inflation had ramped up 4.9% in November, compared with the same month in 2009.

Two Available Options

China has attempted to keep a lid on prices by cooling the economy, raising interest rates twice last autumn. But that prescription has failed. According to fourth-quarter GDP figures, the economy grew by 9.8%, raising the likelihood that the Beijing government will have to slam even harder on the economic brakes.

It has just two ways to limit prices: impose price controls or raise the value of the yuan, which reduces the price of imports. Price controls rarely work for more than a short time because people find ways around them, such as the black market.

It now seems likely the Chinese will opt for raising the yuan's value. Since last June, the currency has appreciated about 3.5%, or an annual rate of about 7%. When you add inflation, that's 12%. Wolfe says he expects the same level of appreciation for 2011, while Rickards says he sees the yuan rising by at least 10%.

For investors, the yuan is a good one-way bet because it's highly unlikely to come down anytime soon.

China might feel some resentment about its position. "The Chinese feel betrayed by the U. S.," Rickards says. "They feel that part of the deal for buying all those Treasurys was that the U.S. would maintain the value of the dollar. There's an old saying, 'if you're in a poker game and you don't know who the sucker is, then you're the sucker. The Chinese have just woken up to the fact that they're the sucker."

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Post time 2011-4-25 11:33:03 |Display all floors
Originally posted by 468259058 at 2011-4-22 12:11
..

You talked about year on year growth.  2010/2009.

I talked about 20 year's growth..2010/1990..

heheehe..Please double check.



I gave you both, the total M2 and M1 as well as the growth figures for 2010. Check it once again. Nobody is interested in old figures from 1990 except historians.

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Post time 2011-4-26 03:39:39 |Display all floors

To Satsu_Jin

year        M2          ....        M1          ....
1990        1.5        ....        0.7        ....
1991        1.9        27%        0.9        24%
1992        2.5        31%        1.2        36%
1993        3.5        37%        1.6        39%
1994        4.7        35%        2.1        26%
1995        6.1        29%        2.4        17%
1996        7.6        25%        2.9        19%
1997        9.1        20%        3.5        22%
1998        10.4        15%        3.9        12%
1999        12.0        15%        4.6        18%
2000        13.5        12%        5.3        16%
2001        15.8        18%        6.0        13%
2002        18.5        17%        7.1        18%
2003        22.1        20%        8.4        19%
2004        25.4        15%        9.6        14%
2005        29.9        18%        10.7        12%
2006        34.6        16%        12.6        17%
2007        40.3        17%        15.3        21%
2008        47.5        18%        16.6        9%
2009        60.6        28%        22.0        32%

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