Author: abramicus

WIDENING GAP BETWEEN OFFICIAL STATS ON CHINA PMI AND REALITY [Copy link] 中文

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Post time 2013-8-21 13:42:51 |Display all floors
WHAT IT TAKES TO STOP THE GROWTH OF CHINA'S MANUFACTURING SECTOR -- A CENTRAL BANK THAT HAS THE CLOUT TO BRAZENLY SET ITS CURRENCY EXCHANGE RATE AT 6.12, GIVING AWAY FOR FREE BILLIONS OF HARD EARNED DOLLARS TO JAPANESE INVESTORS REPATRIATING THEIR EARNINGS IN CHINA BACK TO JAPAN -- WHILE CHINESE PRODUCTS ARE LOSING MARKET SHARE ABROAD AND AT HOME, BEING OVERPRICED IN DOLLARS ABROAD AND IN YUANS AT HOME.  THIS IS THE GREAT LEAP BACKWARD OF THIS CENTURY.  INSTEAD OF BECOMING AN INTERNATIONAL RESERVE CURRENCY, CHINA WILL END UP HAVING NO FOREIGN CURRENCY RESERVE INSTEAD.

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Post time 2013-8-22 14:17:07 |Display all floors
China's Purchase Managers Index rose above the 50.0 level to 50.1 for August 2013, and in the meantime, the Yuan devalued a little bit to 6.125 Yuan per Dollar.   The two indicators are inversely related.  The more China devalues the Yuan, the higher will China's PMI rise.  The devaluation of the Yuan is absolutely ncessary to prevent the flow of free dollars from the Central Bank of China to the central bank of Japan.  6.125 is not enough.  7.00 is the most reasonable goal to set.

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