Author: cestmoi

China to Invest 1 Trillion Overseas Next Decade   [Copy link] 中文

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Post time 2013-8-26 12:50:10 |Display all floors
vincelee76 Post time: 2013-8-26 07:17
a little, why do you ask about detroit.  The chinese are wasting their money on Detroit.  The amer ...

I can't agree with you more. At the end of the day, the Chinese Government would probably lose its pants. A very bad and unwise move by the Chinese government

Translation...(not absolute)...

我完全同意你的看法。
在一天结束之际,中国可能会失去他们的裤子

来自中国政府的一个极坏的和不明智的举动,


FIRST NATIONS ( LAKOTA PEOPLE ) Heartbreaking - (Google Search for video) "to stay true to who you are. Never allow anyone make you different or think different about what it is you are created to be ...

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Post time 2013-8-26 12:57:09 |Display all floors
This post was edited by Revolutionar at 2013-8-26 12:57
sansukong Post time: 2013-8-26 12:50
I can't agree with you more. At the end of the day, the Chinese Government would probably lose its ...




would like to see you protesting in front of ZhongNanHai.


That would be nice! because that would be the last time we see you. !!





I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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Post time 2013-8-26 13:05:19 |Display all floors
This post was edited by abramicus at 2013-8-26 13:16
cestmoi Post time: 2013-8-26 03:41
Couple of things you seem to have missed.

The overseas investment is likely to be over a period o ...

In your line of thinking, the CCP is the root of all of China's problems, conveniently ignoring that China had even bigger, potentially life-threatening problems, for more than a hundred years before the CCP came into existence, so how can you justify your thesis that getting rid of the CCP would solve most if not all of China's problems, which remain to a large extent due to hostile Western and Japanese policies.  

The one trillion dollars overseas investment is not coming from the PBOC direct, sorry.  It is coming from investors who put up the Yuan equivalent of their dollar investments, exchange their 6.121 Yuans for 1 Dollar, and then just sit it out and wait for the Yuan to devalue, as it must in order for China's manufacturing to survive and for the GDP growth rate to not drop below 3%, and then, they repatriate their overseas dollars back to China at the exchange rate of 7.00 CNY/USD, making a windfarr profit of 0.88 Yuans for every dollar they had previously "invested abroad".  For you to say that no Yuans are involved sounds either naive at best, or cunning at worst.  Of course, Yuans are involved, which is the point of the "investment" scheme to take dollars out of the foreign currency reserves of China and give it to the bigwigs and SOES that are lining up to invest as much of China's dollars abroad as they can get away with, and earn an arbitrage profit when the Yuan eventually devalues back to 7.00 from its current 6.12.

All this "investing" abroad smacks of a heist of the Chinese central bank using accounting tricks that leave only a wisp of a digital trail.

As to the time they propose to engineer this transfer of Chinese dollars abroad, 10 years, that is beside the point.  So, they can make a clean profit of 88 blllion yuans per year for 10 years, if they invested 100 billion dollars abroad each year.  Of course that is less than making 880 blllion yuans from an immediiate investment of 1 trilliopn dollars abroad, but 88 billion yuans per year is a lot of money still.  

China should not be investing any of its dollars abroad until the Yuan exchange rate is sustainable, which implies, until the Yuan falls back to its equilibrium exchange rate of 7.00 CNY/USD which was what was the case just before the 2008 Mortgage Derivative Meltdown in Wall Street.  To do so before the Yuan exchange rate is back to normal is to allow the foreign currency reserve of China to be looted in broad daylight without a shot.  It is like letting the fox into the chicken koop.

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Post time 2013-8-26 13:06:06 |Display all floors

RE: China to Invest 1 Trillion Overseas Next Decade

gooddog Post time: 2013-8-26 09:38
China government has trillions of dollars to invest abroad and US government in debt with trillions  ...

Another way of putting it .... is:   Why flog a dead horse?    {:soso_e119:}
Translation...(not absolute)

把它的另一种方式是....为什么枉费心机? {:soso_e119:}  
FIRST NATIONS ( LAKOTA PEOPLE ) Heartbreaking - (Google Search for video) "to stay true to who you are. Never allow anyone make you different or think different about what it is you are created to be ...

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Post time 2013-8-26 13:10:38 |Display all floors
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Post time 2013-8-26 13:12:45 |Display all floors
sansukong Post time: 2013-8-26 12:50
I can't agree with you more. At the end of the day, the Chinese Government would probably lose its ...

China's entrenched bureaucrats in charge of its foreign exchange rate seem totally untouchable.  Even when Jiang and Hu had to step down because of the mandatory retirement age of 70 years, this does not apply to the bankers there.  And now, one of their own is the Czar of the Anti-Corruption Campaign, presumbably because he will be most capable of detecting and stopping any financial shennanigans.  But what if the anomaly comes directly from their own institution?  All this catching of corrupt officials is like chasing after the rats while allowing the barn to be ravaged by a pack of wolves.

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Post time 2013-8-26 15:35:07 |Display all floors
abramicus Post time: 2013-8-26 13:12
China's entrenched bureaucrats in charge of its foreign exchange rate seem totally untouchable.  E ...
  1. All this catching of corrupt officials is like chasing after the rats while allowing the barn to be ravaged by a pack of wolves.
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you right. Must catch more rats.


like this big huge Rat right here. the sansukong Rat.
I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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