- Registration time
- Last login
- Online time
- 1223 Hour
- Reading permission
As had been pointed out here in CD forum repeatedly, the revaluation of the Yuan by the People's Bank of China from 8 Yuans to 1 Dollar to 6 Yuans to 1 Dollar had done nothing for the Chinese people, except allow the fat cats to send their loot abroad at a favorable exchange rate for more dollars than ever in their lifetimes, courtesy of the foreign currency reserve of the PBOC, which must have lost at the least 200 billion dollars, including to foreigners trying to repatriate their Yuan earnings back into Dollars. An investment or loot worth 100 yuans five years ago, would have been worth $12.50, but when the Yuan was revalued to 6:1, it fetched $16.77, a clean arbitrage profit of $4.27, or a profit margin of 34.2%.|
Not only that, the revaluation of the Yuan had made foreign imports cheaper than domestic products, forcing factories to cut down production, lay off workers, or downsize.
Revaluation of the Yuan also made Chinese exports more expensive than foreign products abroad, again forcing Chinese manufacturers to lose market, profit margin, and eventually have to lay off workers.
The net result was predicted a year ago in this CD forum - recession accompanied by loss of billions of dollars of foreign reserves to domestic fat cats and SOES which have been on a roll "investing abroad" with built-in exchange rate profits when they turn their Yuans into Dollars to invest abroad, and to foreign investors in China, whose Yuans are worth more dollars than the Dollars they initially invested into China.
The devaluation of the Yuan should continue until the exchange rate of 8:1 is reached, which was the equilibrium point that makes China competitive and productive. The PIE-IN-THE-SKY fake objective of buying the right of China to make the Yuan the next international reserve currency fails for the simple reason that any country printing fiat money must have the world's most powerful military, capable of enforcing its currency on any regime anywhere on the planet, and China does not have that kind of a military. This PIE-IN-THE-SKY dream of making the Yuan an international reserve currency has cost China hundreds of billions of dollars of foreign reserve, and is no closer to becoming a reality now than five years ago.
LET THE YUAN DEVALUATE NATURALLY TO 8 CNY:1 USD.
STOP THE LOOTING OF THE COUNTRY'S FOREIGN CURRENCY RESERVE BY CHINESE COMPANIES OR INDIVIDUALS INVESTING THEIR YUANS ABROAD, AND BY FOREIGN COMPANIES REPATRIATING THEIR YUANS AS DOLLARS BACK HOME.