Posted on 08/23/2019 9:04:12 AM PDT by SeekAndFind
The value of the Chinese yuan fell to a fresh 11-year low against the US dollar on Friday, fuelling worries that China has given up on achieving any progress to end the trade war with the United States in the near term and so is moving to offset the effect of new tariffs with a weaker exchange rate.
The weaker yuan, in turn, dragged down regional currencies, aided by central bank interest rate cuts, that would lead to an acceleration of capital outflows from Asia this year.
Recent signs appear to indicate that China was preparing its economy for a scenario in which no progress is made at the face-to-face trade negotiations between US and Chinese officials expected to take place in Washington next month, analysts said.
And despite the US labelling China a currency manipulator early this month to address what it sees as the unfair trade advantage resulting from a cheaper yuan, Chinese authorities let the yuan drop to its weakest level since March 2018, the seventh straight daily decline.
The drop in the yuan followed a reduction in interest rates by the People’s Bank of China (PBOC) this week. The central bank set its new one-year lending prime rate at 4.25 per cent, down from the old lending benchmark rate of 4.35 per cent, which analysts believe is the start of an easing cycle to prop up economic growth.
“Perhaps the PBOC is sending a message to the US trade hawks that it will let the yuan gradually weaken as a policy weapon to neutralise the effect of increased tariffs,” said Stephen Innes, co-founder of Valour Markets.
(Excerpt) Read more at scmp.com ...
The Chinese believe the fake polls that show Sleepy Joe up by double digits. Why would they not wait 17 months and then Sleepy will give them whatever they want?
The sad truth is — fake polls are effective propaganda tools.
It was 7.05 yuan to the dollar. It is now 7.10.
RE: They have built a giant empty cities for years to show GDP growth
Exactly how many of these “Ghost cities” are there and how much is this costing China?
close to 50 ghost cities per this 2019 article.
https://allthatsinteresting.com/chinese-ghost-cities
OK, here’s my personal take ( now please don’t get me wrong, I am not trying to defend China or saying that there are no ghost cities ).
Sometimes, we tend to be over pessimistic about these things. I’ve been to China many times in the past 15 years and have seen this happening.
Many developments criticized as ghost cities did materialize into economically vibrant areas when GIVEN ENOUGH TIME TO DEVELOP, such as Pudong, Zhujiang New Town, Zhengdong New Area, Tianducheng and malls such as the Golden Resources Mall and South China Mall.
While many developments failed to live up to initial lofty promises, most of them EVENTUALLY became occupied when GIVEN ENOUGH TIME.
I was told by a developer that westerners who call them “ghost cities” are like pundits who call the results of a game at halftime.
Ordos Kangbashi of Inner Mongolia for example, is often seen as the one of the first and most prominent examples of the international Chinese ghost city phenomenon and fascination. Some journalists have pointed to the Ordos Kangbashi ghost city stories as an example of Western medias hasty and often misinformed reporting of development in China.
Reporting that often eschews reaching out to local officials and planners in favor of trying to attract readers unfamiliar with China’s development model and bemused at Chinas perceived backwardness.
However, as of 2016 ( the year Trump was elected), it was reported that Ordos Kangbashi has a population of 100,000 people, 80 percent of which are full time residents, with the remainder commuting daily from nearby Dongsheng for work.
READ about it from Forbes magazine:
“Our great president, with his international acumen in business , is singularly qualified at this endeavor There will never be another one like him , and there will never be another time like this! “
sad but true ...
Excuse me, Seek and Find, but what is your point? The article is about currency and your playing the ghost city game. Did I miss something, or are you riding a hobby-horse?
The entire discussion of Ghost Cities was not started by me but another poster. See Post #4 above.
That may be correct in some of those cities, where foreigners are allowed to visit. I’d just be cautious about their equivalent of “Potemkin Villages”.
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