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Currency Manipulation

FunnyMoney

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#1
essay removed
 
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Uncle

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#2
To run a PEG you need the reserves to maintain it.

Golden Regards
Uncle
 

ZZZZZ

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#3
US politicians and The Fed are much bigger currency manipulators than the Chinese.

In their Infinite Wisdom, every time they tinker and tweak with US interest rates, it affects the comparative value of the FRN.
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ZZZZZ

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#4
Just because somebody else is committing a crime, doesn't mean that the other side isn't or isn't actually committing a much bigger crime.

The thread is about the currency manipulation, those who've mentioned it in the past, and the nature of it's illegality and those involved in the treasonous act - which was to the detriment of the American people.
My point is that interest rate manipulation IS currency manipulation. And it's much easier to do and get away with.
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Uncle

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#5
And where did they get the reserves to do that?

Connect those dots and that's how you arrive at treason.
It's called taking bribes and direction from foreign entities to the detriment of the American people. It's a case for treason.
You are forgetting the long game the Chinese are playing.

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Zed

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#6

Zed

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#7
Problem is, they would have done just fine and been ok without having to destroy the American middle class and our manufacturing base.
It was always going to happen, look @ what you did to Britain when you took the mantle of empire. Life fell apart for many in the old empire as the new rose. So the cycle will continue.

The US needs to work out how to mature gracefully.
 

Zed

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#8
Translation: The US needs to accept TPTB own them and everything, and we should be happy with a future in mercenary and service sector work for our children.
No, that is not what I said.

Your response is to suck it up and play by the global rules - so what if they're full of theft, crime and a path toward tyranny.
You are stuck on rules, this more about a surfer not fighting the ocean, going with the flow and using it to your best advantage.

Do you really like the Chinese gov't that much? Do you think the system they have in place should be our goal too?
Not at all but it is what it is at the moment.

As for China it is very likely that they have to go through a big recession/correction to wash out the mass of bad credit. If that occurs the governments worst fear will rise and they will have a civil revolt on some scale. It is not inconceivable that becomes the end of the current system of government and we see a meaningful change as they move forward and 'grow up'.

I see this as being much like the 30's depression, it was driven by a debt bomb in the rising power (the US), it sucked the globe into the abyss BUT eventually when it was resolved it was clear that the US came out of it stronger than the old empire (the UK) and it took over as being the top dog. I see China's debt as being the big issue here and when they falter it will damage you more than them in the long run. They will be better positioned on the other side of it and probably dominant by then. The silver lining is that it will be a traumatic period that has a good chance of reshaping Chinese governance. This could get quite dicey for quite a while IMO.

Funny, I see that as being the flip side of this credit-fueled growth they have had, nothing comes without cost and this may well bury the architects of the last few decades of 'growth' in China. No doubt it will please many in the US and it will level the playing field a bit.

I'm speculating, but I'm not a shiny China bull... they will pay for their coke credit habit sooner or later, everyone does.
 

Fatrat

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#9
And how does the Chinese citizen protect himself from currency manipulation? same as us I guess.
 

Joe King

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#10
By being more competitive, working hard and living to a lower standard.
In other words, the same things that would build anyone's reserves.
 

Zed

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#11
In other words, the same things that would build anyone's reserves.
Yes, basically. LOL.

What to do with those pesky reserves?

Disturbingly they eventually get good at what they are doing/producing... then the real trouble starts!

People forget that Germany was the crappy producer of Europe at one point... then there was Jap Crap, and those damn Korean cars... didn't they pick up their game!
 
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Zed

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#12
And how does the Chinese citizen protect himself from currency manipulation? same as us I guess.
The Chinese government has encouraged gold ownership.
 

ZZZZZ

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#13
If each Chinese bought just one ounce of silver every year, it would consume the entire global production of silver. cool:
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Joe King

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#14
If each Chinese bought just one ounce of silver every year, it would consume the entire global production of silver. cool:
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So how do we get them to do that?
 

ZZZZZ

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#15
So how do we get them to do that?
Convince the Chinese Central Bank to print up quadrillions of paper or electronic yuan and start inflating away its value?
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Joe King

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#16
Convince the Chinese Central Bank to print up quadrillions of paper or electronic yuan and start inflating away its value?
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Ok, so how do we get their bank to do that?
....and If they do, how do we know the Chinese people won't go a different direction than silver? What if they go crypto?

Asking because at some point I'd eventually like to be able to unload those two Mercury dimes I got talked into buying back in March of '11.
 

ZZZZZ

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#17
Ok, so how do we get their bank to do that?
....and If they do, how do we know the Chinese people won't go a different direction than silver? What if they go crypto?

Asking because at some point I'd eventually like to be able to unload those two Mercury dimes I got talked into buying back in March of '11.
I dunno, all that's classified way above my pay grade .Maybe we can send Helicopter Bennie Bernanke over there and have him teach them a few things.:oriental:
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Zed

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#18
If each Chinese bought just one ounce of silver every year, it would consume the entire global production of silver. cool:
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Culturally it's gold that floats their boat.
 

Zed

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#19
The workers are unable to protect themselves fully, not even much partially. The dishonest poker game at the main table is a "tails they win - heads we lose" type situation.




The first is easily negated at will by agreements at the main table, and this occurs all the time.

The second has it's limits, some natural and others due to crony competition (elites becoming your competitor and then taking losses until you finally fold).

The third has longer term possibilities - it's the slow boil often talked about and eventually ends up in slavery (Tytler cycle).
The whole dynamic drives the US up the economic tree. Worker's needed to up skill to stay in the game. The rewards were there if you were smart about climbing the tree.
 

ZZZZZ

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#20

Zed

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#21
Well, China was on a silver standard for many decades while the rest of the world was on a gold standard.
True... I'm talking modern day.

BUT they LOVE to speculate and, ironically, they are great little capitalists if left to their own means. If silver shows enough life, and there is a way for them to participate, I have no doubt that they will pile in like there is no tomorrow. IF that were to go down it would make BTC look tame.
 

Zed

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#22
With respect, the vast majority of politician have no idea what is really going on and they will tell you whatever makes you feel vindicated and whatever gets you to support them!

... but this much is true.

Trump says President Xi runs China’s central bank: ‘He can do whatever he wants’

... within the resources he has is the only caveat you can add to that.

You seem to want a witch hunt.
 

Zed

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#23
You do realize that this quote is having it both ways... IF it is a pegged currency they import your monetary settings, i.e. your interest rates etc become theirs, it is practically the same as using USD domestically.

“They devalue their currency, they have for years: It’s put them at a tremendous competitive advantage. And we don’t have that advantage because we have a Fed that doesn’t lower interest rates,” Trump told CNBC’s Joe Kernen on “Squawk Box. ”

They, in fact, defend their currency by plowing the accumulated reserves back into UST bills thus financing the US government and keep interests rates lower in the USA benefiting all US-based lenders. Stopping that dynamic causes other issues, about which you'd no doubt complain.
 

Joe King

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#24
They, in fact, defend their currency by plowing the accumulated reserves back into UST bills thus financing the US government and keep interests rates lower in the US
Supposedly they've stopped buying Tbills, so what are they doing with their dollars now? Buying gold?