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This post was edited by abramicus at 2013-8-13 14:43|
robert237 Post time: 2013-8-7 12:37
Why would China want to limit itself to printing more money as western economies do?
This is an ol ...
The slowdown in China's GDP growth rate affects every phase of China's economic development using any model. GDP is just a number that includes everything being done of any marketable value in China. All countries, communist or capitalistic, or mixed, has to have a number to gauge whether it is producing more, or less, from year to year. The shadow trailing this number is that of other gauges of economic decline, such as overcrowding, crime, prostitution, and eventually, foreign interference and invasion as central political authority crumbles in the midst of popular discontent and anger.
China is already way ahead of any model economists have tried to fix her to, until recently, when a bunch of "educated" apparatchiks tried to make China do its capitalism with western characteristics and used its hidden levers to actually undermine the Chinese economy, not aid it.
The hidden lever is that of pegging the Yuan to a higher exchange rate that causes domestic, not just overseas, prices of Chinese products to be OVERPRICED relative to foreign products (to readers unaccustomed to the inverted terminology of exchange rates that is probably designed to confuse the average person, a higher exchange rate for the Yuan is quoted as a smaller number, such that the current exchange rate of 6.12 is actually higher than 7.00, and the unit of comparison, USD/CNY, is a total contradiction, because 6.12 is the ratio of CNY or Yuans to USD or dollars, and therefore, 6.12 should actually be denominated in CNY/USD).
This twin pincer movement of the Yuan OVERVALUATION is killing off Chinese manufacturing, even at home, not really improving domestic production. Any increase in domestic consumption is likely to occur at the expense of domestic production, and this will eventually lead to China becoming dependent on foreign production to satisfy its domestic consumption. But developed countries will do so only as long as China has a large foreign currency exchange to draw from in purchasing their goods. They will not acccept Chinese fiat currency as payment. The next phase after China's foreign currency reserve dries up is that prices will then spike up, as foreign imports become more and more expensive, while domestic products continue to be overpriced relative to foreign imports, leading to inflation.
This is how the Chinese economic juggernaut is going to be dismantled.
From within, by the PBOC pegging the YUAN to an exchange rate that makes China's products too expensive to buy abroad in dollars, and too expensive to buy at home in yuans.
This is HIGH TREASON, because it also finances the revival of the Japanese Wehrmacht, just as the reparations of 200 million taels of silver that China paid to Japan under the Treaty of Shimonoseki of 1895 underwrote the military buildup of Japan in the early 20th Century.