Chinese Economics Thread

[gelgoog]

PBOC is trying its hardest to hold down the Yuan vs. USD. As more people like the Russians want Yuan, it will break through eventually.
Let's see how resolute the US will be with tariffs. Maybe they will fight to the last American middle class. LOL

China should use the higher Yuan to soak up and lock in available commodities. Then just print like hell.
As global trade in Yuan will increase they need to increase liquidity too.

Yuan has to go up to match commodity prices. Basically, the dollar is dead.

The dollar isn't dead (yet) because the global capitalists can't just rush their money into the Yuan or Chinese markets.
But it risks turning into something like the Dutch Tulip market yes. A currency and a product which can't get you anything of use.

 

[jfcarli]

China should use the higher Yuan to soak up and lock in available commodities. Then just print like hell.
As global trade in Yuan will increase they need to increase liquidity too.

Your idea is quite smart. If China starts printing yuan and starts buying commodities well in excess of its needs, it would reduce the pressure on the yuan, would increase its security as regards those commodities, AND, it could become a trading hub for those commodities, which would rapidly increase the use of the yuan as reserve and trading currency.

If China uses most of its FX reserves to buy any metal around the world stock pile to the point of bursting its seams, and then create a commercial trading exchange for those commodities.

It would reduce its 3 trillion dollars FX reserves in USD, Pounds, Yens, Swiss Francs, etc... and transform all of it (or most of those FX reserves in readily tradable metals and/or other commodities. For example: oil. Why not create hugge reserves of oil and start trading in it?

 

[dfrtyhgj]

Global capitalists are dead, their money is no longer good and soon their economy would be no good either. Europe is in the process of shutting down. America is on life support from the Chinese peg. And soon the vaccine dieoff begins.

It's already over. (PS: buy commodities, they will retain their value for Chinese consumption)

 

[56860]

Your idea is quite smart. If China starts printing yuan and starts buying commodities well in excess of its needs, it would reduce the pressure on the yuan, would increase its security as regards those commodities, AND, it could become a trading hub for those commodities, which would rapidly increase the use of the yuan as reserve and trading currency.

If China uses most of its FX reserves to buy any metal around the world stock pile to the point of bursting its seams, and then create a commercial trading exchange for those commodities.

It would reduce its 3 trillion dollars FX reserves in USD, Pounds, Yens, Swiss Francs, etc... and transform all of it (or most of those FX reserves in readily tradable metals and/or other commodities. For example: oil. Why not create hugge reserves of oil and start trading in it?

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Buy the dip

 

[antiterror13]

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It should have been handed over to Dept of Defence and Lithography research, nice extra $158B, imagine how many 055, DF-41, warheads, 095, 096, etc

 

[TK3600]

When trump sees this number what would be the reaction? They thought China depends on exporting masks and hand sanitizers.

Blame the other party but refuse to reflect like all American politicians.

 

[Han Patriot]

It should have been handed over to Dept of Defence and Lithography research, nice extra $158B, imagine how many 055, DF-41, warheads, 095, 096, etc

Ppl ask whats the difference between US and China, the main difference is the most profitable banks bring the profit back to the government, in US, the profits go back to the rich people.

 

[Strangelove]

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• Former World Bank vice-president Justin Lin Yifu reiterated his estimate this week that China will become the world’s top economy by 2030
• Overseas investors did sell 67 billion yuan (US$10.6 billion) worth of Chinese bonds last month, taking their holdings to 3.67 trillion yuan (US$580 billion)

 

[56860]

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• Former World Bank vice-president Justin Lin Yifu reiterated his estimate this week that China will become the world’s top economy by 2030
• Overseas investors did sell 67 billion yuan (US$10.6 billion) worth of Chinese bonds last month, taking their holdings to 3.67 trillion yuan (US$580 billion)

All this talk about China surpassing US economically is useless, China already did it in 2014.

If you go by nominal GDP, China could surpass US overnight by appreciating the renminbi to where it's supposed to be. Of course that's not going to happen because the CCP doesn't care about useless metrics like nominal GDP, so Anglo egos are safe for a couple more years.

At the end of the day, which economy is 'larger'? The one which produces a single shirt and sells it for $50, or the one which produces two shirts and sells each for $20?

 

[jfcarli]

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• Former World Bank vice-president Justin Lin Yifu reiterated his estimate this week that China will become the world’s top economy by 2030
• Overseas investors did sell 67 billion yuan (US$10.6 billion) worth of Chinese bonds last month, taking their holdings to 3.67 trillion yuan (US$580 billion)

"...Overseas investors did sell 67 billion yuan (US$10.6 billion) worth of Chinese bonds last month, taking their holdings to 3.67 trillion yuan (US$580 billion)"

Well... It seems those people are afraid of happening whatever happened to the Russian assets held in USD, Euros, Pounds and Yens.

China should use those 1 trillion dollars USD it holds in FX reserves to pay those people.

In fact, I think China should divest itself of anything resembling those currencies asap...