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China's renminbi as a reserve currency? Not so fast.

Ahlevah

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China’s latest efforts to impose stricter control on capital outflows, especially on the yuan, are set to hurt its goals of creating an international currency and expanding the nation’s global influence, analysts say.

The Chinese central bank and foreign exchange regulators have made the decisions behind closed doors and declined to confirm the new rules that are circulating on social media applications and grabbing news headlines, raising questions over the transparency of Chinese policymaking.

“In order to become a reserve currency, the markets have to trust the authorities,” Paul Gruenwald, the chief Asia-Pacific economist for S&P Global Ratings, said at a briefing.

While China has the ambition to make the yuan a reserve currency, “it’s not uniformly moving towards a reserve currency” and China’s ambition is “many, many years away”, he said.

China's capital controls can harm currency, global ambitions? | South China Morning Post

Back to the drawing board, I guess. :shrug:
 
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Back to the drawing board, I guess. :shrug:

I guess the secret of a Reserve Currency is to be burdened with a huge, unmanageable debt like the USA. $20 trillion of direct debt, hundreds of trillions of deferred obligations. Yowza, that's the economic solution, eh?
 
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Back to the drawing board, I guess. :shrug:

In the 1990s the Chinese government saw the opportunity to make some money selling organs for transplant, so they starting ripping the organs out of political prisoners, people in prison for being members of the Falon Gong and what not, and selling them to Westerners. Tens of thousands of organs were sold in this way, ripped from the bodies of healthy prisoners who were strapped down and subjected to this without anesthesia.

I won't have anything to do with such an evil government. Anyone who trusts their currency or anything else about them is insane.
 
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Back to the drawing board, I guess. :shrug:

China has allowed the RNB to increase in value for the last ten years relative to the USDollar. At this time it is at parity. It is the labor rates in the USA and China that cause the trade imbalance. Nothing can be produced cheaply in the USA anymore. Wages are relative to home prices because people must be able to afford a home. Homes are extremely expensive in the USA and the values have been propped up by bad gov't policy as recent as 2008 when the USA should have allowed the banks and the mortgage/housing market to collapse. That would have made home cheaper and affordable at lower wages stopping/reversing the wage spiral that increased the price of everything. China has reduced its poverty rate down from 84% to 10% in the last twenty years. China is supposed to take care of Chinese and they do and their success indicates they are doing something right, especially for their citizens. Perhaps the USA needs to help its' citizens and screw the one tenth of one percent, eh?
 
Tens of thousands of organs were sold in this way, ripped from the bodies of healthy prisoners who were strapped down and subjected to this without anesthesia.
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do you have evidence of this?
 
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