Ufo propu engine, closed loop

[ltseung888]

  Moody's downgrade of China
 
Economist A: "Will the downgrade affect the economic growth of China?"
 
Economist B: "No. China does not need to borrow money. It can print its own. Other Nations accept RMB eagerly. The one belt one road projects help the economic growth of China and many other Nations."
 
Economist C: "After 2008, Moody's and other foreign rating agencies lost their credibility. China is embarking on a new game. It Forex trades via its own exchange. There will no longer be drain on its Foreign Currency Reserve. RMB automatically becomes a strong settlement and reserve currency with the expansion of the one belt one road projects."
 
Economist A: "So we just ignore Moody's. I look forward to a steady appreciation of RMB."

Economist A: "Let us talk about Mutual Credits. If China gives X RMB to Nation A and Nation A gives the equivalent Currency A to China, no debt is incurred. Nation A can purchase the products and infrastructures from China. That will stimulate China's economy. On the other hand, China can use Currency A to build residential buildings, malls, tourist areas, factories and explore minerals in Nation A. That will help Nation A to become wealthy. Such an act will serve as a very powerful engine of growth. Win-win."

Economist B: "That means both China and Nation A will print more of their thin air money. Are there any bad consequences?"

Economist C: " A Nation must increase it currency supply for its citizens to become wealth. The same applies to Nations. If the printing of thin air money is well managed, the act will indeed be a very powerful engine of development. If I were Nation A, I can use thin air money to build my needed infrastructures without incurring debt. I would gladly do so. If China uses my Currency A to help to bring prosperity (not inflation), I would get rich faster. Why not?"

Economist B: "If I were Nation A, I would focus on Internet and education. The key to getting rich is technology, technology and technology. I would encourage my people to learn, master and improve on technology. I would ask them to delay getting luxury goods."

Economist A: "If Nation A pegs its currency to RMB, RMB and the pegged currency will have a mass far more than USD. Does that mean RMB will be the default settlement and reserve currency?"

Economist B: "China can forex trade via its own Forex Exchange and thus define any exchange rate independent of market forces. Now China is the number one trading nation. Soon it will be the number one investor nation. There will be no stopping it to becoming the largest economy in the World. Its GDP growth can easily be 10% again."

Economist C: "USA, Japan or any other Nation can adopt the China strategy. Make other Developing Nations rich using its spare production capacity and know-how."

Economist A: "If two camps (USA et al and China+Russia et al) compete to get Developed Nations rich, it will not take long to get all Nations developed. I would guess the time to be less than one generation."

[profitis]

"If two camps"

I'm beginning to really like this camp I'm in

[ltseung888]

 Comment:

Tseung, with Mutual Credits, China essentially provides the funding and technology to build infrastructures for Nation A. There may not be any "Return On Investment". The thin air money and labor may result in a road or bridge for Nation A. That road or bridge may not bring any direct benefit to China.

Such an act is a violation of economic principles. Economic principles state that there must be a return for any effort. Otherwise, the act would not be sustained. China may be able to do it once or twice but the citizens will soon object.

You are also assuming that China can use the thin air money from Nation A to generate wealth for Nation A and for itself. Such an assumption has no basis. It is high risk. US, Japan and other Developed Nations will not do it because they rely on private enterprises. Private enterprises rely on profit to sustain their growth. Do not even think that any Developed Nation will take on such stupid, violation of economic principle acts.

[ltseung888]

 Pakistan and other Stans

Pakistan may be able to establish win-win relationship with other Stans. (Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan)

Pakistan has a larger population and the Stans have much oil and mineral resources. The one belt one road initiative covers all these Nations. Roads, rails and bridges may be built to link these Stans to the Gwadar port. Internet can bring education and opportunities to all.

[ltseung888]

Seminar on One Belt One Road and Sure-Win Businesses


June 13, 2017 at Tanner Hill from 2:30pm to 4:30pm.


See attached presentation