China’s Ambitions for Dedollarization Take Another Step Forward with petroyuan as oil producers rally to Beijing, Russia has 'become an Asian nation,'

[jhungary]

Yuan is not free trade currency. Imagine one day Chinese government decides to allow Yuan to be traded freely. Yuan's share will rise sharply. The day will come when China makes breakthrough in semiconductor and more profitable goods like EV dominate world market.

There is a reason why Yuan was not traded freely, and probably will never in the next 20 years.

If Yuan started to float, their price would sink. Yuan is seriously overvalued right now, and the reason it is overvalued is because the government had been defeating the demand for Yuan, has been since 2000. If they float Yuan now, the value of Yuan will be like the Japanese Yen.

Which is probably the only thing Chinese government did right is safeguard their own currency.

 

[beijingwalker]

There is a reason why Yuan was not traded freely, and probably will never in the next 20 years.

If Yuan started to float, their price would sink. Yuan is seriously overvalued right now, and the reason it is overvalued is because the government had been defeating the demand for Yuan, has been since 2000. If they float Yuan now, the value of Yuan will be like the Japanese Yen.

Which is probably the only thing Chinese government did right is safeguard their own currency.

US dollar is the most overvaled currency in the world, they just keep printing more and sending the inflaction through the ceilings. US calls China currency manipulator, US itself is indeed the top leader in currency manipulation.

 

[jhungary]

US dollar is the most overvaled currency in the world, they just keep printing more and sending the inflaction through the ceilings. US calls China currency manipulator, US itself is indeed the top leader in currency manipulation.

Dude, are you just going to bash me even when I am singing Chinese Praise?? Or you saw me and immediately think I am going to say something bad for China. As I said, this is probably the only thing Chinese Government did right is to control their currency, so Chinese Yuan did not become another Yen.

US does not manipulate their currency by the way, Printing new money and issuing bond is two different thing. There are only 4- or 5-times US treasury in 200+ year issue new currency outside them regulate otherwise known as Quantitative Easing Measure

History of Quantitative Easing in the U.S.

The Fed has implemented quantitative easing programs several times in the US over the past twenty years with varying results.

americandeposits.com

US of course print currency, but for people like you who know shit about economy, printing currency is not the same as remove the ceiling of currency restriction, you print new currency to replace the old one, you print that 1 to 1, so you take $1 out of circulation, you put $1 back in. Printing $1 when you don't put $1 out of circulation is the issue, which is what QE does.

US never needed QE before 2008 because they can simply issue new bond which act as a big IOU and as long as you can come up with a payment to cover that loan, you can keep issuing them without issue. That's change in 2008 because the loan (second mortgage market to be precise) IS the problem.

But am I imaging you know every one of this? No.

 

[beijingwalker]

Dude, are you just going to bash me even when I am singing Chinese Praise?? Or you saw me and immediately think I am going to say something bad for China. As I said, this is probably the only thing Chinese Government did right is to control their currency, so Chinese Yuan did not become another Yen.

US does not manipulate their currency by the way, Printing new money and issuing bond is two different thing. There are only 4- or 5-times US treasury in 200+ year issue new currency outside them regulate otherwise known as Quantitative Easing Measure

History of Quantitative Easing in the U.S.

The Fed has implemented quantitative easing programs several times in the US over the past twenty years with varying results.

americandeposits.com

US of course print currency, but for people like you who know shit about economy, printing currency is not the same as remove the ceiling of currency restriction, you print new currency to replace the old one, you print that 1 to 1, so you take $1 out of circulation, you put $1 back in. Printing $1 when you don't put $1 out of circulation is the issue, which is what QE does.

US never needed QE before 2008 because they can simply issue new bond which act as a big IOU and as long as you can come up with a payment to cover that loan, you can keep issuing them without issue. That's change in 2008 because the loan (second mortgage market to be precise) IS the problem.

But am I imaging you know every one of this? No.

US dollar is a faith based currency, google and you can see many articles on this fact.
Chinese currency is backed by unrivaled foreign trade volume and her peerless manufacturing might, what backs US dollar?

 

[jhungary]

US dollar is a faith based currency, google and you can see many articles on this fact.
Chinese currency is backed by unrivaled foreign trade volume and her peerless manufacturing might, what backs US dollar?

Ask your Chinese central bank what back the US dollar??

And Manufacturer might mean shit in finance. In fact, anyone with ECON 101 will tell you manufacturing might put stress on the currency as it increase the demand, ask the Japanese how it goes from 1 USD to 12 yen in 1970 to 1 USD o 120 yen now.

But thanks for the laugh tho.

 

[beijingwalker]

Ask your Chinese central bank what back the US dollar??

And Manufacturer might mean shit in finance. In fact, anyone with ECON 101 will tell you manufacturing might put stress on the currency as it increase the demand, ask the Japanese how it goes from 1 USD to 12 yen in 1970 to 1 USD o 120 yen now.

But thanks for the laugh tho.

so dollar is backed by nothing but faith, I don't need to have long discussion about this fact here, google and there are tons of articles and posts about this fact.

 

[jhungary]

so dollar is backed by nothing but faith, I don't need to have long discussion about this fact here, google and there are tons of articles and posts about this fact.

lol, sure USD is backed by faith, is that why China uses USD as denomination of their Forex and use it to almsot all International Financial activities. And probably to around 140 countries in the world.

Dude, the only thing that show is you know nothing about Finance and Currency.

 

[kankan326]

There is a reason why Yuan was not traded freely, and probably will never in the next 20 years.

If Yuan started to float, their price would sink. Yuan is seriously overvalued right now, and the reason it is overvalued is because the government had been defeating the demand for Yuan, has been since 2000. If they float Yuan now, the value of Yuan will be like the Japanese Yen.

Which is probably the only thing Chinese government did right is safeguard their own currency.

Wrong. US put 25% extra tariff on Chinese goods but China still exported more goods to US. Which means if Chinese goods are still competitive if Yuan appreciateds 25%

 

[jhungary]

Wrong. US put 25% extra tariff on Chinese goods but China still exported more goods to US. Which means if Chinese goods are still competitive if Yuan appreciateds 25%

That's the appreciation of the goods, not the appreciation of currency, literally you are saying is you simply conferred the tax to the end user, because they paid more.

This HAVE NOTHING TO DO with currency appreciation

 

[kankan326]

That's the appreciation of the goods, not the appreciation of currency, literally you are saying is you simply conferred the tax to the end user, because they paid more.

This HAVE NOTHING TO DO with currency appreciation

US is just an example. For those countries who don't impose extra tariff to Chinese goods. If Yuan appreciates 25%, they will still buy Chinese goods. Meanwhile Chinese companies will keep their profit margin and Chinese economy won't be affected by Yuan appreciation. Which in turn proves Yuan is actually undervalued.

 

[beijingwalker]

lol, sure USD is backed by faith, is that why China uses USD as denomination of their Forex and use it to almsot all International Financial activities. And probably to around 140 countries in the world.

Dude, the only thing that show is you know nothing about Finance and Currency.

lol, go and google to find out how many professionals "know nothing about this and that".
Dollar is backed by nothing but faith, if all currencies were taken out today, trades are done only by bartering, China can live happily and comfortably, US will break down and collapse.

The difference of producing products vs only printing money

 

[jhungary]

US is just an example. For those countries who don't impose extra tariff to Chinese goods. If Yuan appreciates 25%, they will still buy Chinese goods. Meanwhile Chinese companies will keep their profit margin and Chinese economy won't be affected by yuan appreciate. Which in turn proves Yuan is actually undervalued.

It's a wrong example.

If appreciation of currency did nothing to domestic use, because you still spend RMB. not USD, it just mean instaeed of 1 USD buying 5 RMB, you now need 1.25 USD to buy 5 RMB.

What you are saying is elevate the price of the article and refer those tax tariff to the end user, it does not change the currecy exchange rate,. Because if an article you are selling for 100RMB in China, WITHOUT INCREASING THE SALE price, even if RMB is 25% appreciated, you will still get 100 RMB for your article, because that is your sale price, the only difference is the buyer in the US will pay 22.25 USD instead of 20 USD for your article.

Profit margins have nothing to do with currency, you don't spend the other currency in China, you spend RMB.

lol, go and google to find out how many professionals "know nothing about this and that".
Dollar is backed by nothing but faith, if all currencies were taken out today, trades are done only by bartering, China can live happily and comfortably, US will break down and collapse.

The difference of producing products vs only printing money

sure, I would like to know how you can trade 3 tons of electronic for Bananas. Imagine this coversation

Electronic Factory owner "From today forward, we are not paying you any currency, we will be paying in Banana..."

I mean, this is probably the most absurd post you made, we use currency for a reason, there is a reason why we abandoned bartering back in bronze ages. And to think modern Currency is actually invented by the Chinese and then we have the same Chinese spilling these kind of BS is literally just mind blowing..

I mean, please do go back and use bartering in order to see "Evil America" Collapse, nobody is stopping you...

 

[beijingwalker]

sure, I would like to know how you can trade 3 tons of electronic for Bananas. Imagine this coversation

Electronic Factory owner "From today forward, we are not paying you any currency, we will be paying in Banana..."

I mean, this is probably the most absurd post you made, we use currency for a reason, there is a reason why we abandoned bartering back in bronze ages. And to think modern Currency is actually invented by the Chinese and then we have the same Chinese spilling these kind of BS is literally just mind blowing..

I mean, please do go back and use bartering in order to see "Evil America" Collapse, nobody is stopping you...

Can be traded with Chinese money in the future, at least we produce both electronics and bananas, not just printing paper money.

 

[beijingwalker]

You don't produce Banana. They are native in Sub-Tropical area.....

The only place China close to sub-tropical is Hainan Island, and they don't have banana plantation

ignorance has no boundaries

 

[khansaheeb]

Thank you Neocons:-