Ufo propu engine, closed loop

[ltseung888]

Question: Can someone explain how China can prevent an attack to devalue the RMB and destroy its "trust worthy status"? There is already a large amount of RMB in the International Markets.  Some was due to the large purchases of raw material since 2008 to build infrastructures.  Some was due to Chinese tourists spending aboard.  Some was due to corruption. If USA tells the World that the RMB will devalue or even collapse and start selling RMB, other holders of RMB may follow. If China were to sell its US assets to pop up the RMB, that reserve will run out.  China may then let the RMB free float.  The RMB will rapidly devalue.  This is the tactics used in the Asian Financial Crisis.  This attack can easily destroy the "trust worthy status" of the RMB.

This is one of the "features" built into the financial rules established by the West (USA).  It is like the Trojan Horses built into the Windows Operating Systems.  It is like the hidden programs in the USA military weapons sold to its allies - if the allies ever use the weapons on USA, the hidden programs will render the weapons useless.

Are there brilliant economic brains that can provide more insight???

Tseung, if you have two camps competing to help the under developed Nations developed, each camp is likely to take care of its members. The process and competition will be more prosperity for all.  There is no need to worry about nuclear wars, regional wars, currency wars, religious wars etc.

Just preach - if a Nation wants to become rich and remain rich, it should help other Nations rich.

[ltseung888]

Question: Can someone explain how China can prevent an attack to devalue the RMB and destroy its "trust worthy status"? There is already a large amount of RMB in the International Markets.  Some was due to the large purchases of raw material since 2008 to build infrastructures.  Some was due to Chinese tourists spending aboard.  Some was due to corruption. If USA tells the World that the RMB will devalue or even collapse and start selling RMB, other holders of RMB may follow. If China were to sell its US assets to pop up the RMB, that reserve will run out.  China may then let the RMB free float.  The RMB will rapidly devalue.  This is the tactics used in the Asian Financial Crisis.  This attack can easily destroy the "trust worthy status" of the RMB.

This is one of the "features" built into the financial rules established by the West (USA).  It is like the Trojan Horses built into the Windows Operating Systems.  It is like the hidden programs in the USA military weapons sold to its allies - if the allies ever use the weapons on USA, the hidden programs will render the weapons useless.

Are there brilliant economic brains that can provide more insight???

Tseung, the Trojan Horses planted by the USA government experts in Windows or in US Weapons will not be activated if there were no threads to USA. If China remains a "good boy", the financial traps will not be used against China.

[ltseung888]

Tseung, if USA attacks the RMB to cause it to devalue, China can increase the price of its goods to counter.  Or the price of export goods will be evaluated in USD.  There may be reduced exports but China does not really rely on exports to fuel its GDP growth.  Domestic consumption is more important.

GDP growth is a funny thing.  Consider the following case:

(1) The local government gave a big party for the senior citizens to celebrate the New Year.
(2) The party was "extravagant" in that the amount of money spent per citizen was far more than any previous occasions.
(3) The explanation was that the spending increased the contribution to GDP. 
(4) The spending on Infrastructures in that region was giving diminishing returns. The spending on the party gave more joy to the citizens. The thin-air money was available and must be spent.  If not spent, the allocation would be less next year.

When GDP is calculated this way, China can maintain and increase its GDP growth at will. So long as the Government is in control (or the trust is there), attacks by private  hedge funds or currency manipulators can be overcome. If the USA Government leads the attack directly, that will be a different matter...

[ltseung888]

If a Nation wants to be rich and remain rich, it should help other Nations become rich.

China is following this strategy.  The Asia Infrastructure Investment Bank and the Modern Silk Road Initiative are good examples.

What will happen if other Nations such as Japan, Germany, Russia follow the same strategy?

https://www.youtube.com/watch?v=LkDXXpPfoLc

Interesting documentary.

[ltseung888]

Tseung, if USA attacks the RMB to cause it to devalue, China can increase the price of its goods to counter.  Or the price of export goods will be evaluated in USD.  There may be reduced exports but China does not really rely on exports to fuel its GDP growth.  Domestic consumption is more important.

GDP growth is a funny thing.  Consider the following case:

(1) The local government gave a big party for the senior citizens to celebrate the New Year.
(2) The party was "extravagant" in that the amount of money spent per citizen was far more than any previous occasions.
(3) The explanation was that the spending increased the contribution to GDP. 
(4) The spending on Infrastructures in that region was giving diminishing returns. The spending on the party gave more joy to the citizens. The thin-air money was available and must be spent.  If not spent, the allocation would be less next year.

When GDP is calculated this way, China can maintain and increase its GDP growth at will. So long as the Government is in control (or the trust is there), attacks by private  hedge funds or currency manipulators can be overcome. If the USA Government leads the attack directly, that will be a different matter...

The case quoted above is actually very revealing.  China is still having a lower standard of living than USA.  In Purchasing Power Parity PPP terms, China, with its much larger population, is already number one.  All China needs to do is to rapidly increase its standard of living.  This can be done without any military conquests or regional wars.  The disputes with Japan and with Countries in South China Sea should not be a factor in the continued rapid increase in standard of living.

Increasing GDP on paper is not very Meaningful.  Increasing the living standard of the Citizens is. The coming Meaningful Economic Activities for China may include:

(1) Every Citizen has a smart phone to do e-commerce. The e-commerce includes Government Social Security Benefits, Banking, Goods and Service Payments, moderated forums etc.
(2) Super Democracy.  Every Citizen or Voter can vote on key issues via their smart phones.
(3) Lifelong education via the fastest internet connections.  Some may be tied to their career advancements.
(4) Improving living standard with the new electronic gadgets that will be better than any existing ones.  These will cover food, health, entertainment and security areas.
(5) Flying saucers to replace the family car???
(6) Work with Russia as one camp to compete with USA to see which camp can help poor Nations develop faster.

So longer as China does not get into wars (including economic) that will derail or send it backwards, the prospects are very bright.  When a Nation is free to define more Meaningful Economic Activities for its GDP growth, it can grow at almost any rate. (One more thing to avoid is internal party politics with each party accusing the other as messing things up.  Do not fall into the trap of Stupid Democracy.)