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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (135788)	9/28/2017 12:14:28 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217708

By instituting "currency controls" to stabilize the value of the Yuan at the level China's leaders promised the IMF, this means the Yuan is not fully convertible and only some people can convert their Yuan into other currencies. Initially China has placed foreign investors at the head of the queue, meaning many Chinese firms wanting to obtain foreign currency to buy other companies or foreign assets have been told "No, no foreign currency conversion for you right now." A country like Saudi Arabia would be pleased to be paid in Yuan if the currency is fully convertible for them and the Chinese central bank can instantly convert this into what ever they want whether this is Dollars, or Euros, or Brazilian Reals. But if China tells Saudi Arabia, "No, not right now we can't convert your Chinese funny money into what you prefer," then Saudi Arabia would be foolish to accept over-printed funny money nobody wants. This is fundamentally obvious to everyone but you. This means China has to put fall-back procedures into place to keep the oil flowing, like an oil futures market scheme to hoover up gold from their citizens so China can have access to something readily convertible to keep buying oil and other vitally needed supplies.

To: TobagoJack who wrote (135788)	9/28/2017 12:33:44 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217708

Back in the time of Mao literally nobody wanted Chinese currency (then called "a soft currency"), so China had to sell whatever assets or commodities people with foreign currency would buy from them. Like North Korea today, China sold rice to foreigners during times of drought in China. China sold antiquities and art formerly owned by "capitalist-roaders" to museums and collectors around the world - just like the Soviet Union did. All of the ancient art was worthless decadent artwork, not "valuable" Socialist Realism so it was sold. Chinese buyers are now paying top Dollar to buy many of these treasures back, (not top Yuan, top Dollar). Armand Hammer built-up an exquisite collection of Faberge eggs which were formerly owned by the Czar which Lenin traded to him in return for pencils and a pencil factory. - en.wikipedia.org What do you think China sold during the Mao era to obtain "hard currency"? It wasn't contaminated crap pig iron produced in the mud hearths Mao demanded that each village Mao build. Other communist nations certainly traded with China, trading their shit goods in return for China's low-quality shit goods. But shit goods had very little appeal elsewhere in the world. Mao's Great-Leap into Economic-Wastralism To an unchanging communist bullshitter "economics is more hate" and voting for Nazis is smart, but most don't give a shit what they think - I certainly don't. East Germany made some of the best quality "shit goods" in the communist block. To visit East Germany you had to exchange 18 Deutschmarks for 18 Ostmarks for each day you were going to be there. People like the elderly retired woman I met on the train to West Berlin who visited family for months at a time in East Germany had a bank account in East Germany of something like 18,000 Ostmarks - because she said East Germany only offered "shit goods" in return for "shit money". Their bottled cherries weren't bad, and the pickles made by the Spreewald gherkins factory were a favorite of some - but after the wall came down, most former East Germans didn't even buy these goods. I bought things like meals in an overpriced restaurant for foreigners and VIP communists. The elderly woman told me in preparation for visiting the east she bought the shabbiest clothes she could find in the "Bahnhof Mission Stores", like a charity shop, so she wouldn't stand out. But people in the East could still tell she was from the west because of the higher quality of her clothes. In China you could wear a standard Mao suit in one of two colors - and that was it. Sitting in Hong Kong and trying to rewrite China's history simply won't do. You have to stick to the facts. Like any other country, China is constrained by the limits of Mundell-Fleming. If China had not agreed to stabilize the value of the Yuan, other G12 nations would have sharply cut their access to global markets. So China needs to move their exporters up the value-added ladder to escape their current need to eliminate the full convertibility of the Yuan. Move the other direction and they're back to barter and selling art and gold. You've made it clear you're not very well versed in economics, and that's fine. It's only important that the economists at the Bank of China and China's ultimate leaders understand economics. Mao and his inner-circle of leaders didn't understand economics and China paid a horrible price for this. Deng Xiaoping understood economics, so needless to say his policies were in contradiction to Mao's and he was purged twice during the Cultural Revolution. But following Mao's death Deng was able to outmaneuver Mao's chosen successor and lead China into the enlightened world of economics - something he hid with slogans like "Socialism with Chinese characteristics" and similar euphemisms. Another of the millions of utterly worthless village iron smelting operations producing unusable metals

To: TobagoJack who wrote (135788)	9/28/2017 1:35:00 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217708

Even today some Chinese elders still wear their Mao suit while feeding the swans in Luzern Switzerland while his princeling son and grandchildren wear more normal fashions on holiday. It will surprise no one that the son was earlier taking photos of his meals at the restaurant with his phone. Many like us found this an endless source of amusement. Dad's retro-Mao suit is cut from a fairly decent fabric which wasn't the case when Mao was alive.