Posted on 07/14/2020 8:30:25 PM PDT by SeekAndFind
China is all in, for a Biden presidency.
And no one with a lick of sense trusts China to keep honest account books as to its currency or public or company finances. Buying Chinese goods is one thing, but buying Chinese assets is subject to the political and economic risks inherent in a Communist regime.
Translation: their currency and monitory well being are on the edge of collapse. They have a corporate bond crisis that they keep papering over. With the big drop in exports, the corporate bonds may miss their scheduled dividend. Things could get ugly then.
The traitorous US press and social media is buying it for them.
Their currency is guaranteed to float.
Any day now once the Three Gorges Dam breaks!
Try the veal, I'll be here all week.
We can’t count on Europe for anything. They’re basically useless. If they see trade with China as important to their self interests, well, you can hardly blame them.
Why don’t they just rename it the Ruth Bader Ginsberg Dam?
LOL! Yeah, right? I hear that old broad is back in the hospital. For cryin’ out loud when is that old buzzard gonna kick the bucket?
bkmk
Here is why China can not allow free trading of its currency. Every time they have tried billions of dollars worth of value are removed from china, mostly to the United States. This is called capital flight. The Chinese have bought everything in the US they can. If they invest X in something here, and only get back a fraction of the purchase price when they sell, that is a win over losing it all, which is what will eventually happen when China implodes. The implosion of china is virtually guaranteed by virtue of their bad economic policy going back thirty years.
The other problem is, even if they made Chinese money convertible, nobody wants it. Nobody wants anything except dollars. If Brazil sells something to Mexico, Mexican money must first be converted to dollars for the purchase to take place.
The Euro was the best attempt to unseat the dollar’s position as the world currency. Then, the EU simply went into Cypriot banks and stole money to pay for a bailout. Overnight, the Euro went from a challenger to an also-ran.
What the author talks about can’t happen. Chinese money is the most fiat of fiat currency. Worthless.
So true!
...liberals everywhere are dismayed.
The dollar came to dominate international trade after WWII because the US was the primary source of a critical industrial commodity (oil) and, after the devastation of the war, a source of critical industrial goods.
There was a 'dollar shortage' after the war which the US remedied with the Marshall Plan, which donated 4% of US GDP for a few years to get other countries' economies back up.
This outflow of dollars and continued trade deficits when needed allowed the dollar to become the world's reserve currency.
China would have to give up its predatory mercantilism and run trade deficits to put more yuan in circulation for the yuan to come into general use, which is impossible for them. Their mercantilism keeps the dollar in circulation and allows China to artificially keep its currency low to support exports. There isn't enough internal demand to support China's industrial infrastructure, so right now it has a terrible oversupply problem.
The only way the Chinese try to put yuan in use is through predatory loans for development where almost all the money comes back to China anyway. The 'loan' consists of little more than credits for purchasing Chinese products and services, and are now largely recognized as a front for Chinese political control.
Biden, Clinton, obama would be taking bribes from the communists to do the opposite. The $1.5 billion was a down payment that the Bidens received.
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