This might give Greenspan pause in hiking rates
- Thread starter rawman74
- Start date
Anyone that has half a clue in the financial markets knows that the "Renminbi" is manipulated by the Chinese government. They deliberately undervaluate their currency. It does not FLOAT!!!
The Renminbi has been "pegged" at roughly 8.28 to the dollar since 1995 and is clearly undervalued by as much as 40%.
Chinese authorities have accomplished this by intervening in the market, that is, buying dollars with renminbi (or yuan), to keep this relationship intact. Consequently, China's foreign reserves have exploded and are now about $350 billion, an exceedingly large figure.
China's trade surplus with the United States last year was $103 billion and growing-the largest U.S. deficit with any country. China's trade competitiveness is based on more than its undervalued exchange rate, but the latter is an important contributor.
The Renminbi has been "pegged" at roughly 8.28 to the dollar since 1995 and is clearly undervalued by as much as 40%.
Chinese authorities have accomplished this by intervening in the market, that is, buying dollars with renminbi (or yuan), to keep this relationship intact. Consequently, China's foreign reserves have exploded and are now about $350 billion, an exceedingly large figure.
China's trade surplus with the United States last year was $103 billion and growing-the largest U.S. deficit with any country. China's trade competitiveness is based on more than its undervalued exchange rate, but the latter is an important contributor.
Don't worry they will do so now that they have pumped the money for nearly nothing from the people to buy the stock market at low, when they will resell they will have already started to increase the rates so that people can borrow money at high rate for the profit of the bankers who at the same time will distribute the stocks that will then plunge as it is distribution phase from the commercials alias the same bankers. You don't trust politicians and you would trust these bankers not to work for their sole profits ? Those who would reason like that are lacking common sense and are even irrational indeed.