Chinese Economics Thread

delft

Brigadier
"This trip is likely, in part, an attempt to build on that and perhaps pave the way for payment in hard currency should the P5+1 framework agreement transition into lasting relief from those sanctions."
Again that reference to the fictional "hard currency".
 

Miragedriver

Brigadier
Interesting data regarding GDP can be found at:

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Here is a screen shot:
cOTPg30.png



Back to bottling my Grenache
 

Blackstone

Brigadier
Again that reference to the fictional "hard currency".
For all practical purposes, the Yuan is "hard currency," and will likely be included in IMF's basket of Special Drawing Rights (SDR) currencies along side the Dollar, Pound, Euro, and Yen. That is, one assumes the US doesn't veto the inclusion.
 

Verum

Junior Member
Yuan/RMB has its weaknesses. It's a government controlled currency that's not free floating. This is good for the Chinese economy, which it could be manipulated in every way it would be beneficial. But the down side is that it damages its reputation by been not free floating.

It could be fixed by making it free floating, but then it hurts the Chinese economy since it's mostly export based as of now. Uncontrolled flotation would make it so high that majority of small Chinese manufacturing firms would bankrupt overnight.

So it's a huge dilemma. But if used properly, it could be a useful tool like the US government uses its DOLLARS.
 

delft

Brigadier
World economy is being damaged by the US buying internationally using dollars created from hot air. In that sense the dollar is not a hard currency and has not been since 1971. The recent QE's, dollars created by the Fed - which is itself a creation of the large banks and not a part of US government - have been extreme examples of what has been happening ever since dollars, which are mostly create by the banks, could not be used to buy gold at a legally decided price when President Nixon stopped the sale of gold at $42.2 ( IIRC ) per troy ounce.
 

Jeff Head

General
Registered Member
Hate to say this but fiat currency which is main stream of most currency around the world are the same.

Yes...this is true.

For decades now most nations have played what I believe to ultimately be a foolish and dangerous game with fiat currencies with little or no hard currency backing.

But, as long as people believe in their worth and are willing to exchange them for goods and services...the construct will hold.

Should that confidence ever really be lost, it would result in a very hard fall...all over the world.
 

kwaigonegin

Colonel
Yes...this is true.

For decades now most nations have played what I believe to ultimately be a foolish and dangerous game with fiat currencies with little or no hard currency backing.

But, as long as people believe in their worth and are willing to exchange them for goods and services...the construct will hold.

Should that confidence ever really be lost, it would result in a very hard fall...all over the world.

and to add to the instability of fiat currency you now have things like bitcoins which is getting to be more mainstream each day.
 
Interesting data regarding GDP can be found at:

Please, Log in or Register to view URLs content!


Here is a screen shot:
cOTPg30.png

The revealing thing about this list, especially the PPP one, is that numerous countries which are rarely mentioned as large economies are quite high up on the list. Indonesia, Mexico, Iran, Nigeria, Argentina, Pakistan, and the Philippines all have larger economies in PPP terms than much ballyhooed South Africa.
 
and to add to the instability of fiat currency you now have things like bitcoins which is getting to be more mainstream each day.

In order for there to be accountability rather than just a popularity contest, which is what unqualified business trust is in many ways thereby the existence of conmen and pyramid schemes, there must be sufficient transparency which never happens without regulation and oversight.
 
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