Depreciation of the dollar impact on China
History, always so easily be forgotten.
Recently, from the Chinese Government and people down to the Action, are worried that years 2002 -2007 in China's history: nearly 2 trillion U.S. dollars of foreign exchange reserves of China will be the future depreciation of the dollar or inflation phagocytosis, and the Chinese people the blood and sweat of the U.S. labor force will also be subjected to zero-cost exploitation of printed bank notes.
Popular in recent years "conspiracy theory" to stimulate, the United States to cope with the global financial crisis and the use of "seigniorage rights" in China, triggering an unprecedented concern: whether economists stomp beat their chests in the media or ordinary people in the network blog share for the country, as well as the Chinese leaders in a number of major international occasions requested Washington to ensure that China's investment interests in the United States.
No matter where compared, and now China's international economic environment and very like the end of 2001: In 2001, the network in order to cope with the 9.11 incident, the bubble has burst and the impact of the Federal Reserve Note Printing wantonly go full steam ahead, the federal funds rate down to 45 years minimum. And at that time, China has owned the world's second largest foreign exchange reserves; and now, the Fed in order to meet the global financial crisis, interest rates almost to zero, and a substantial expansion of the balance sheet, and the introduction of quantitative easing monetary policy, and more money into the banking system, and now China also has a crown cover nearly two trillion U.S. dollars of global foreign exchange reserves.
In line with public expectations, the public担扰in 2002 become a reality after all: Since 2002, the United States is indeed cut interest rates led to the proliferation of global liquidity; U.S. has embarked on a trip to the depreciation and devaluation rare historical range; and the devaluation of the dollar has really set off the global inflation and asset bubbles, whether it is from oil, copper, iron and steel to grain and other bulk commodities, or countries, including China, the stock market, housing market and other asset prices.
In contrast, the Chinese pay "the price is: China's GDP increased from the seventh into third in the world, China's broad money M2 and household savings in the past 7 years and then double, and puzzling is that the China was the world's second-largest foreign exchange reserves, has not been worried about the depreciation of the dollar and inflation eat, but more than Japan, becoming the first in the world.
In fact, it dumbfounding that the results of the no drama: "Wumart" and "Made in China", with the height dropping off the "cheap" dollars, flooding the world.
More importantly, the devaluation of the dollar is only a relative concept: the devaluation of dollars, that is, other currencies, for China is the RMB appreciation. From past experience, do you think China will let the yuan rise sharply, or the substantial depreciation of the RMB against the U.S. dollar, resulting in significantly reduced China's foreign exchange reserves?
A possible result is that the future even if the dollar devaluation, but has assets of RMB will not be reduced. In contrast, China's foreign exchange reserves, base money, banks may be the mobility of people's imagination more than the increase, and repeat the results of 2002-2007, of course, "Made in China" Japan and Germany will also take a number of high-end manufacturers get a thorough Next, as in 2002, the "Made in China" as the global expansion.
The contrary, the U.S. dollar, it may allow China's entry into the "nightmare": In the beginning of a sharp contraction of global consumption, the dollar's sharp appreciation will be "Made in China" into "hell."
In fact, all the appreciation from the U.S. point of view, each U.S. dollar, are the currency pegged to the U.S. dollar along with the country's currency and financial crisis :1980-1985 years of sharp appreciation, Mexico and Latin American countries into the debt crisis in 1995 -- the U.S. dollar in 2001, the collapse of Southeast Asian countries, then triggered a global financial market turbulence.
This did not happen by chance. Countries pegged to the U.S. dollar in their appreciation of the currency along with the U.S. At the same time, the loss of export markets outside the United States at the same time, the United States and the devaluation of the local market also hit the competitiveness of national goods, once the country's current account deficits, international capital certainly panic withdrawal, the currency crisis and financial naturally follow. Alarming is that despite the U.S. public is expected to be devalued, but the U.S. has embarked on a revaluation of the current trip, and the U.S. economy vis-à-vis Europe, Japan and the United Kingdom and other countries more flexibility in recovery, do not rule out the wave out of the medium-term appreciation of prices, In fact, since last year, the U.S. dollar funds in the risk aversion driven by the appreciation has been substantial, at present, the euro against the U.S. dollar has changed from the previous high of 1.48 to the depreciation of 1.31 or so, it is clear that the yuan has gone up as the dollar .
Of the RMB, it will undoubtedly get the tiger back, it is difficult to take the initiative to jump to, but only a passive appreciation as the dollar until the overvalued currency, the international financial panic fled to China, even if the central bank's foreign exchange reserves sufficient to block live in capital flight, but the banking liquidity crisis would occur. Although China's banking sector is currently the statutory reserve of up to 14%, and there will be due within two years more than two trillion central counting of funds, but as long as China last year to repeat the situation of Russia, outflows of foreign exchange reserves within a few months half of China's banking industry will be dead.
In fact, international capital inflows had slowed down, high trade surplus also fell, while non-mandatory settlement in the current policy, residents and businesses will not rush to dollars into yuan, and export enterprises have been delayed receipt phenomenon.
Of course, China is the world's thriving economy, although the "show" was a bit reluctantly, but at least the short term also can not see any concerns about the yuan, but the medium-term if the dollar continued to appreciate, which is China, will not present the public of hope because of the U.S. dollar foreign exchange reserves and value-added, on the contrary, my assessment is that the foreign exchange reserves will shrink dramatically.
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Recently, from the Chinese Government and people down to the Action, are worried that years 2002 -2007 in China's history: nearly 2 trillion U.S. dollars of foreign exchange reserves of China will be the future depreciation of the dollar or inflation phagocytosis, and the Chinese people the blood and sweat of the U.S. labor force will also be subjected to zero-cost exploitation of printed bank notes.
Popular in recent years "conspiracy theory" to stimulate, the United States to cope with the global financial crisis and the use of "seigniorage rights" in China, triggering an unprecedented concern: whether economists stomp beat their chests in the media or ordinary people in the network blog share for the country, as well as the Chinese leaders in a number of major international occasions requested Washington to ensure that China's investment interests in the United States.
No matter where compared, and now China's international economic environment and very like the end of 2001: In 2001, the network in order to cope with the 9.11 incident, the bubble has burst and the impact of the Federal Reserve Note Printing wantonly go full steam ahead, the federal funds rate down to 45 years minimum. And at that time, China has owned the world's second largest foreign exchange reserves; and now, the Fed in order to meet the global financial crisis, interest rates almost to zero, and a substantial expansion of the balance sheet, and the introduction of quantitative easing monetary policy, and more money into the banking system, and now China also has a crown cover nearly two trillion U.S. dollars of global foreign exchange reserves.
In line with public expectations, the public担扰in 2002 become a reality after all: Since 2002, the United States is indeed cut interest rates led to the proliferation of global liquidity; U.S. has embarked on a trip to the depreciation and devaluation rare historical range; and the devaluation of the dollar has really set off the global inflation and asset bubbles, whether it is from oil, copper, iron and steel to grain and other bulk commodities, or countries, including China, the stock market, housing market and other asset prices.
In contrast, the Chinese pay "the price is: China's GDP increased from the seventh into third in the world, China's broad money M2 and household savings in the past 7 years and then double, and puzzling is that the China was the world's second-largest foreign exchange reserves, has not been worried about the depreciation of the dollar and inflation eat, but more than Japan, becoming the first in the world.
In fact, it dumbfounding that the results of the no drama: "Wumart" and "Made in China", with the height dropping off the "cheap" dollars, flooding the world.
More importantly, the devaluation of the dollar is only a relative concept: the devaluation of dollars, that is, other currencies, for China is the RMB appreciation. From past experience, do you think China will let the yuan rise sharply, or the substantial depreciation of the RMB against the U.S. dollar, resulting in significantly reduced China's foreign exchange reserves?
A possible result is that the future even if the dollar devaluation, but has assets of RMB will not be reduced. In contrast, China's foreign exchange reserves, base money, banks may be the mobility of people's imagination more than the increase, and repeat the results of 2002-2007, of course, "Made in China" Japan and Germany will also take a number of high-end manufacturers get a thorough Next, as in 2002, the "Made in China" as the global expansion.
The contrary, the U.S. dollar, it may allow China's entry into the "nightmare": In the beginning of a sharp contraction of global consumption, the dollar's sharp appreciation will be "Made in China" into "hell."
In fact, all the appreciation from the U.S. point of view, each U.S. dollar, are the currency pegged to the U.S. dollar along with the country's currency and financial crisis :1980-1985 years of sharp appreciation, Mexico and Latin American countries into the debt crisis in 1995 -- the U.S. dollar in 2001, the collapse of Southeast Asian countries, then triggered a global financial market turbulence.
This did not happen by chance. Countries pegged to the U.S. dollar in their appreciation of the currency along with the U.S. At the same time, the loss of export markets outside the United States at the same time, the United States and the devaluation of the local market also hit the competitiveness of national goods, once the country's current account deficits, international capital certainly panic withdrawal, the currency crisis and financial naturally follow. Alarming is that despite the U.S. public is expected to be devalued, but the U.S. has embarked on a revaluation of the current trip, and the U.S. economy vis-à-vis Europe, Japan and the United Kingdom and other countries more flexibility in recovery, do not rule out the wave out of the medium-term appreciation of prices, In fact, since last year, the U.S. dollar funds in the risk aversion driven by the appreciation has been substantial, at present, the euro against the U.S. dollar has changed from the previous high of 1.48 to the depreciation of 1.31 or so, it is clear that the yuan has gone up as the dollar .
Of the RMB, it will undoubtedly get the tiger back, it is difficult to take the initiative to jump to, but only a passive appreciation as the dollar until the overvalued currency, the international financial panic fled to China, even if the central bank's foreign exchange reserves sufficient to block live in capital flight, but the banking liquidity crisis would occur. Although China's banking sector is currently the statutory reserve of up to 14%, and there will be due within two years more than two trillion central counting of funds, but as long as China last year to repeat the situation of Russia, outflows of foreign exchange reserves within a few months half of China's banking industry will be dead.
In fact, international capital inflows had slowed down, high trade surplus also fell, while non-mandatory settlement in the current policy, residents and businesses will not rush to dollars into yuan, and export enterprises have been delayed receipt phenomenon.
Of course, China is the world's thriving economy, although the "show" was a bit reluctantly, but at least the short term also can not see any concerns about the yuan, but the medium-term if the dollar continued to appreciate, which is China, will not present the public of hope because of the U.S. dollar foreign exchange reserves and value-added, on the contrary, my assessment is that the foreign exchange reserves will shrink dramatically.
inflatable bouncer , inflatable castle , inflatable slide , inflatable toys , inflatable obstacle course , inflatable games ,inflatable tunnel ,inflatable tent , inflatable arch , inflatable advertising , Inflatable Air Dance , christmas inflatable .from East inflatables
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