Ufo propu engine, closed loop

[ltseung888]

Using the Malaysia Ringgit Strategy.
If China were to declare trading of RMB outside China is illegal and pegged the RMB at 1USD to 6.8800, what is likely to happen?
(1)    China can tell all Buyers of Chinese Goods that they can pay in USD or in RMB at 1USD to 6.8800RMB (or in their own currency at the pre-agreed swap currency rate).
(2)    If the RMB fell to 1USD to 8.0000 as an example, Buyers can buy RMB in the International Market and buy the approved goods or services in China.  If they use their USD, they will only have 6.8800 to spend.
(3)    The Buyer Nations are likely to get as much RMB as possible in the International Market.
(4)    There will not be much devaluation of RMB. Bank of China does not need to defend the RMB. Other Buyer Nations will do it.
(5)    It is a win-win strategy. China wins as it can preserve its Foreign Exchange Reserve and sell more goods or services. The Buyer Nations wins as they can get more RMB for their Dollar. The Currency Speculators wins as the RMB is effectively depreciated somewhat. They would make some profit after unwinding their short position.
(6)    China can even use the event to its advantage by announcing that there is a time limit (say 2 months) for the Buyer Nations to use their RMB obtained from the International Market.

The advisors to Malaysia must have considered the what-ifs very carefully. With such plans in place, there will be no panic.
China can effectively let its trading Nations peg their currencies to RMB. So long as RMB is stable and pegged firmly to the USD, RMB is effectively a Settlement and a Reserve Currency. In theory, all rigidly pegged currencies are Settlement and Reserve Currencies.
With this new rule, Hedge Funds and Currency Speculators have no voice in determining the exchange rate. Bank of China does not need to worry about their activities. They can still trade CNY on their Forex platforms but the rates and transactions are irrelevant.


This technique allows China to preserve the exchange rate and keep its foreign exchange reserve. The claim that the likes of George Soros are Market Forces can be ignored.

[ltseung888]

The advisors to Malaysia must have considered the what-ifs very carefully. With such plans in place, there will be no panic.
China can effectively let its trading Nations peg their currencies to RMB. So long as RMB is stable and pegged firmly to the USD, RMB is effectively a Settlement and a Reserve Currency. In theory, all rigidly pegged currencies are Settlement and Reserve Currencies.
With this new rule, Hedge Funds and Currency Speculators have no voice in determining the exchange rate. Bank of China does not need to worry about their activities. They can still trade CNY on their Forex platforms but the rates and transactions are irrelevant.


This technique allows China to preserve the exchange rate and keep its foreign exchange reserve. The claim that the likes of George Soros are Market Forces can be ignored.

Tseung, what are you going to do now that you think you have a good solution?

[ltseung888]

Tseung, what are you going to do now that you think you have a good solution?

The attached email will be sent to all who may have an influence on the Financial World in Hong Kong and China.

[ltseung888]

http://www.marketwatch.com/story/this-economist-thinks-china-is-headed-for-a-1929-style-depression-2016-06-30e


Economists are allowed and encouraged to voice different opinion (even in China). There is no right or wrong in interpreting past events. Some even told me that the Asian Financial Crisis was not due to attack by Hedge Funds.

[ltseung888]

 A crazy, innovative idea
As many of you already know, China is embarking on encouraging innovation. Venture funding is easy to obtain. Crazy ideas will be listened. The following is one of the craziest (and most innovative) ideas that came to my attention.
(1)    The entrepreneur wants to develop a bicycle that can charge batteries. The batteries can be used on the same bicycle or removed to other bicycles.
(2)    The bicycles will be owned by local governments that build special bicycle lanes.
(3)    The user of such bicycles actually get paid!
(4)    If the battery of the bicycle is run down, there will be additional payment for recharging.
(5)    There will be many "reverse rental" stations facilitating the renting and parking of such bicycles.
(6)    Riders can even ride such bicycles to their own homes and use them to ride to work or to the nearby mass transit stations.
(7)    The payment can be via Smart Phones.
(    Many youngsters with no means of earning money can earn money this way.
(9)    This is a green revolution.  Many will not buy cars and pollute the environment.
(10) The health of Citizens will improve with the exercise.
Is the above idea crazy or innovative? Does it deserve support? Should such crazy ideas be promoted?