How China’s Currency Policies Will Change the World – analysis

How China’s Currency Policies Will Change the World

Analysis – AUGUST 26, 2015 | STRATFOR

But that is clearly no longer the case. And now, as China continues to adjust the yuan, markets throughout the world will react accordingly, even as they react differently.

Analysis – Read more:  How China’s Currency Policies Will Change the World

 

Post a comment or leave a trackback: Trackback URL.

Comments

  • de castro  On August 31, 2015 at 3:09 am

    Guessed it…the chinese bubble/balloon has pooped/popped.
    Now even the poorest on the planet can buy chinese junk for 50% less…..

    China is heading full speed ahead into recession.

    With USA 14 TRILLION DEBT peanuts !

    Our material world(girl) has got her wish.
    Now the “broom rider” girl will rule america.

    Wow wowvWOW !heehaaw !
    Nice one Cyril

    Kamtan

  • de castro  On August 31, 2015 at 4:23 am

    Seriously
    USA UK EU did exactly what china is doing now.

    In banking jargon
    QUANTATIVE EASING

    A mear fiscal adjustment……print more yuan….”devaluation by back door”
    Now they will be invited into WB IMF as full “money launderers”…..rich nations club. Cannot wait to see money markets reaction on Tuesday.

    With USA in 14trillion debt and world trading in dollars will there be a tsunami
    in foreign exchange markets….doubt it. Maybe some big waves.

    We shall see

  • albert  On August 31, 2015 at 10:17 am

    Kamtan: USA UK EU did exactly what china is doing now.

    So you are in banking too. China has been devaluing their currency for many years now. What they are doing now is nothing new. They have already change the world with their cheap products. The markets have already digested their move. The market is uncertain about the CHinese ability to solve their monetary problem.

  • de castro  On August 31, 2015 at 11:31 am

    Uncertain about chinese ability to solve their monetary problem.

    What would you suggest then.……
    Continue printing
    Stop printing
    Reduce interest rates
    Increase interest rates
    Re-align to USD
    Float yuan

    Hey am no banker or economist but feel that until China and USA increase their “middle class” in their societies the volatility will remain in the markets.Their internal consumption as important as ROW buying their products.(external consumption) ….they must get the balance right.
    NO ECONOMY will have continued growth unless the import/export balance
    is right. EU UK already have a majority “middle class” aka “working class”
    with minimum wage constraints on the lower paid working class.

    It is no point producing goods and services if the consumers are not there to purchase (consume) them. Which brings us to the job creating agenda.
    For another discussion/debate.
    If a ford assembly worker annot afford the car he makes…why make it ?

    Just one example
    of the circle complete.

  • albert  On August 31, 2015 at 6:41 pm

    Bai the Chinese started out as communist, then wannabee capitalist controlled at the top and now they have a capitalist problem. They are throwing billions into the market but it does not stop the bleeding. Its causing some serious global problems because they are the second largest economy.
    On paper the US economy is doing great: employment below 6%, the stock market has reached record levels. Our problem is in the distribution of income. The UK will suffer much more than us if China falls.
    By the way what does the UK produce apart from currie and roti (forgot the name) for tourists. I always wonder.

    • de castro  On September 1, 2015 at 1:13 am

      My brother
      Dem chiney berry berry smart…..dem guh find a “solution”…..
      London enjoys dem rich chinese tourist with the POUND deh favourite
      currency…..London City the “money launderers” of our planet.
      Why dem Germans want UK in EUROLAND.
      POLITRICKS my friend.
      Agree that USA has to resolve their Rich V Poor class in their society.
      Suggest TAXATION as the WMRW(weapon of mass redistribution of wealth)
      “Socialism” ….capitalism with a conscience.
      Build up a sustainable middle class.

      Throwing billions into market AKA Quantative Easing is a sort of devaluation.
      Makes your exports more competitive. Improves your “trade weiged index”
      Export/import imbalance…..jugglers dilema.

      At present uk is aligned to EU …65% EXPORT to euroland.
      Hopefully in a decade it will be 35% with EU 65% ROW.
      Trade is a very diverse balancing act in a global world.
      Get it right you prosper get it wrong you are bancrupt….
      Brazil heading that way…..maybe another Greece
      with re-scheduled IMF WB loans. See Lula has stepped in to
      guide Wilma…..withdraw some of the “austerity” initiatives.

      Hey will have to charge a consultancy fee for all this
      Politico/econonico bull****….chuckle chuckle.
      Just a schnap of el dorado 15yo will do.
      Salud
      Habla luego me amigo
      Kamtan

  • de castro  On September 1, 2015 at 12:40 am

    Shallow thinking my brother…..
    UK is one of the few countries that export twice as many uk manufactured cars
    as it imports.
    After a home the next most important purchase is a car…..then comes the
    Electrical whites and electronics. Decade ago uk had no manufacturing base.

    Just Google “trade weighed index” for the stats.

    Am no uk patriot/nationalist or even royalist but my four children and grandchildren enjoy a lifestyle I only dreamt of.
    In my boyhood days in GG ECD BG saw a picture of Buckingham palace
    Big Ben and some castles……thought am going there to check it out.
    Believed that the grass was greener elsewhere at mid/late teens.
    Rest is history…..born a Guyanese will die a Guyanese. My space already reserved in Cove and John cemetry with my ancestors.

    On arrival in London with thousands of Jamaicans/west Indians/Guyanese
    in 60 s ….my first rejection by the white Irish “room to let” landlady ….sorry
    no ” coloureds” …London residents resented all these “coloured peoples” arrivals from its former colonies. Rest is also history.
    Today London pop over 10m which almost doubles in summer
    tourist season is a thriving metropolis of mixed ethneticity.

    In 2015 it is estimated that over 40million passengers will pass through
    GATWICK airport…..my retirement home a bungalow 7 minutes from airport
    rented from my local government CBC.

    SORRY IF I STRAYED A BIT FROM SUBJECT to give a background of my experiences in my country of residence….not by choice but more by
    chance…..returned to guyana where my four children were born before
    re-migrating back to uk in 1975….Also lived in Spain for decade after
    retirement at 60….EU now my oyster visiting the new kids on the block….
    easstern EU which was Putins (russian) ex colonies….poland hungary chez rep
    Etc etc …over 17 ex soviet colonies.

    Am in proocess of writing my biography my legacy after my exit.
    My 4 children and 6 grandchildren and hopefully a great great grandchild or two
    before my exit.

    Hey a lifetime is but a century enjoy it if you can.
    Que sera sera

    Finally
    For a lil island of tribal barbarians to have such an influence on our planet
    is an achievement in itself…..invaded by Romans in 55BC who civilised the
    south by adopting their gods….built ADRIAN WALL to keep the barbarians north out is history itself. Now Donald Duck comrade Trump wishes to rebuild
    BERLIN wall to keep the “aliens” out.
    THE END

    Sir kamtan lord of cherin by appointment to HRH QE2 UKPLC….longest reigning monarch. God save the queen.😂

  • albert  On September 1, 2015 at 11:00 am

    Maybe an unfair question to ask. Still dont know apart from tourism what specifically UK exports. The last time I was there the price of everything was sky high, relative to American prices and imported. I wonder how my British family (in-laws) were making out with such a high cost of living. The larger question was what was my favorite European country producing to provide for its people. The only thing I could find that I like was “roti” and currie. Even this cost much more than in New York.

  • de castro  On September 1, 2015 at 3:56 pm

    Everything is relative….also when you were here it was tougher as it was 2.40$
    to pound….everything in UK twice as expensive……today £=$1.50.
    Even today London is still an expensive tourist destination.
    Yet they come in their millions.
    UK makes most of its money in the “city of London” square mile.
    Trading…that’s why I suggested you Google “trade weighed index”.

    If your currency is the strongest on the planet….pound is…
    It does not matter what you buy…..matters more what you sell.
    Import export differentials…..trade weighed index.
    Buy cheap sell expensive the best way I can explain.

    Just try to imagine the numbers…over 12million tourist visiting yearly
    spending £ s……pop uk 70m.
    Monies serves no purpose unless it is mobile……lend borrow
    scenario…..

    Hey must end this epitath hoping my explanation is not too far fetched.
    Sometimes I do go OTT. (over the top) …

    Salud
    Kamtan

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s