Author: english-learner

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Post time 2013-12-25 09:49:11 |Display all floors
There is no economic force powerful enough to stop the growth of China's GDP, except its own massive 3.5 Trillion Dollars of foreign reserves that is being used by its own Chinese Central Bank to buy up Chinese yuans from foreigners at ridiculous exchange rates that make ALL Chinese produces too expensive to sell abroad in dollars, and also too expensive to sell in the home market in Yuans.

Banks that are beholden to international norms and commitments by their governors are the prime instrument of foreign control of China's economy.

Without the intervention of the Chinese Central Bank in the exchange rate value of the Yuan, by overvaluing it using China's foreign currency reserves to buy up astronomic sums of Yuans from foreign investors, China would have been 1 Trillion Dollars richer today, at the least.

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Post time 2013-12-25 10:37:21 |Display all floors
abramicus Post time: 2013-12-25 08:31
There is reason for concern that the People's Bank of China is helping stop the Chinese manufactur ...
The French Revolution was triggered by worse rates of inflation.  


The French Revolution was mostly triggered by war exhaustion and famine, the high inflation rate was a consequence of that, not a cause.
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Post time 2013-12-25 11:42:43 |Display all floors
This post was edited by robert237 at 2013-12-24 19:45
abramicus Post time: 2013-12-24 16:31
There is reason for concern that the People's Bank of China is helping stop the Chinese manufactur ...

U.S. dollars are worth only the paper they are printed on. The yuan is backed by the biggest
industrial power in the world, China. The dollar is backed only by the U.S. military.
It's all a shell game anyway.
The point is, China must and will keep control if its major banks. It is absolutely necessary.
This is one of the last avenues of attack from the west. Socialism is progressing faster in China
than anyone in the west is willing to admit. Bitcoins in their present form are a joke but it
shows the technology for eliminating the need for currency in its present form is already possible.
The Chinese are far better prepared to weather a trade war than the US.
The US is so far in debt that soon nobody will want the dollar anyway.
Would you loan me money if I had more debt than I make in a year? Only if I were holding
a gun on you. And that's the only thing that's propping up the US right now. Their military.
The rest of the world is growing weary of this.
If capitalism promotes innovation and creativity then why aren't scientists and artists the richest people in a capitalist nation?

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Post time 2013-12-25 11:46:11 |Display all floors
MisterPanda Post time: 2013-12-25 10:37
The French Revolution was mostly triggered by war exhaustion and famine, the high inflation rate ...

That's arguable.  War and famine, without hyperinflation does not lead to a civil war.  With inflation, the people have no recourse but to overthrow their own government whose money has become worthless and incapable of serving as a medium of exchange or store of value.  Banks can and do cause revolutions.

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Post time 2013-12-25 14:58:38 |Display all floors
robert237 Post time: 2013-12-25 11:42
U.S. dollars are worth only the paper they are printed on. The yuan is backed by the biggest
indust ...

It is true that the value of the Chinese Yuan is based on China's ability to deliver goods or services on presentation with the Yuan currency it had issued, and is thus more likely to be accepted by other countries on that basis.  However, countries that refuse to use the dollar face destabilization and revolutions, such that out of necessity rather than desire, they still have to use the dollar.  For this reason, the Yuan is unlikely to make significant headway in becoming the reserve currency of the world.

On the other hand, by revaluing its currency upward using its own dollar reserves to buy up Yuans from foreign investors, China gains nothing and loses both its market share (domestic and foreign) and also loses its hard earned foreign reserves (in dollars).  

The former is a fact of life.  The latter is a policy choice that does China nothing good, and everything bad.  Facing the former is not a matter of choice for China.  Continuing the latter monetary policy is, however, entirely avoidable, and should be corrected as soon as possible, to avoid China's growth dropping further, and its foreign currency reserve from being spent as soon as it is earned in a totally useless manner that does not benefit China in any way, and hurts her manufacturing section as well as her currency reserves.

The current Chinese Central Bank policy regarding the use of its foreign reserves to bolster a higher exchange rate for the Yuan is destructive of China's manufacturing sector and overall economic growth, and reduces China's foreign reserves unnecessarily.

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Post time 2013-12-25 16:22:47 |Display all floors
abramicus Post time: 2013-12-25 11:46
That's arguable.  War and famine, without hyperinflation does not lead to a civil war.  With infla ...

Well throw in the mix the ideas of the "lumieres" and an incompetent king.

I'm not saying hyperinflation did not help but that it is a consequence of the war, not a cause and the famine was the trigger for the revolution.
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Post time 2013-12-25 19:11:24 |Display all floors
U.S. thieves hated China so much they brainwashed people to think that they can live without a federal government. With a nation, people will be nothing. It is true for every country in the world.
I am an Asian American. I came to Chinadaily forum hoping to share my experience, knowledge, and my point of view. And in return I want to get the same in return from friends from around the world.

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