China allows the Yuan to appreciate: And so it begins!

In my humble opinion, China allowing the yuan to appreciate is the impetus needed for the Federal Reserve to begin to raise interest rates that will lead to the eventual hyperinflationary currency spiral along with the deflationary credit/wages spiral! This will not be something that just "spontaneously" happens, it will be a gradual progression of the yuan appreciating and the Fed Reserve raising interest rates. However, the breaking point will be sudden and anything but gradual. (what signifies this breaking point is up for debate and open for speculation)

With the culmination of these events a Hobbian view of human nature, "dog eat dog" survival of the fittest mentality comes to mind! In short, it will be mankind at its ugliest! I do believe there will be much good that comes from this and many good-hearted people will shine during this period; however, the severity of this economic armageddon will trump any noble efforts in the short term. The long term outlook is too hard to predict due to the amount of variables and factors associated with this economic calamity.

Stocks Soar As China Finally Gives In To Demands For a Stronger Currency

Posted Jun 21, 2010 10:15am EDT by Peter Gorenstein in Investing, Banking, China

Stock markets around the world are starting the week on a bullish note following China’s decision to allow its currency to appreciate against the dollar.

A stronger yuan means higher prices for Chinese exports – the base of their economy - but more competitive prices for the rest of the world’s goods. China has often been criticized for keeping their currency artificially low, making for unfair competition. Domestically, a stronger yuan gives the Chinese more purchasing power and lowers the risk of inflation, an easy way for Beijing to appease their growing middle class.

This is the first time China is allowing its currency to float since the financial crisis in 2008. Prior to that, China let the yuan to rise by about 20% beginning in 2005. Don't expect a jump like that this time, China is controlling the situation tightly and will continue to limit the currency to a 0.5% daily trading range. What's different is China's sudden willingness to allow movement to the outer edge of the band: On Monday, the yuan rose 0.42% vs. the dollar, the biggest one-day move since July 2005, according to Bloomberg.

In the end, this move is largely symbolic, as Aaron and Henry point out in the accompanying clip. With the upcoming G20 meeting, the announcement illustrates China’s willingness to play their part in helping to rebalance the global economy -- at least symbolically.

Views: 52

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega commented on tjdavis's photo
Thumbnail

Now Playing

"They sure as hell are! "
5 hours ago
Doc Vega commented on Doc Vega's blog post Plausible Explanation Behind Recent Cryptid Sightings in the Wild!
"cheeki kea, yes they have already produced a Wooly Mammoth by crossing DNA from frozen remains in…"
5 hours ago
Less Prone favorited tjdavis's photo
7 hours ago
Less Prone favorited Bob of the Family Renner's photo
11 hours ago
Less Prone favorited tjdavis's photo
11 hours ago
Less Prone left a comment for Misteri
"Welcome back!"
11 hours ago
tjdavis posted blog posts
17 hours ago
tjdavis posted photos
17 hours ago
tjdavis posted a video

The Inversion: The 'Sentient World Simulation' (SWS)

Kingsley L. Dennis discussing subjects from his new book - 'The Inversion: How We Have Been Tricked into Perceiving a False Reality' (published September 26,...
17 hours ago
Doc Vega posted a blog post

Major Technical Developments in 1960 and a Major CIA Disclosure

 In 1960, there were some very significant changes in science, flight research, and oceanography…See More
Monday
Doc Vega's 5 blog posts were featured
Monday
Less Prone favorited Doc Vega's blog post The Saga of Joe Adams May Have Solved What's Behind the Numerous Disappearances Going on in our National Forests
Monday
Zfort Group posted a blog post
Monday
Misteri joined Central Scrutinizer's group
Monday
Misteri joined Machinegunmomma's group
Thumbnail

The Gathering

A place to meet and share contact information with people in your area as an emergency back up…See More
Monday
Misteri is now friends with bob hob and Vladimir Putin
Monday
Misteri updated their profile
Monday
Profile IconMichelle Reichert and Zfort Group joined 12160 Social Network
Monday
Burbia commented on KLC's group MUSICWARS
Monday
cheeki kea commented on Doc Vega's blog post Plausible Explanation Behind Recent Cryptid Sightings in the Wild!
"Anythings possible mad science would bring back all of jurassic park if they could. From a birds…"
Sunday

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted