Ufo propu engine, closed loop

[ltseung888]

Question 7: You are claiming that the Hedge Funds are ganging up to devalue the RMB and make huge profits. You have disclosed how a retail FOREX trader can turn 200K to 5m in six months. Are the Hedge Funds using the same strategy?


The turning 200K to 5m example is to show theoretically - how huge profits could be made even by the calculating retail Forex traders taking advantage of the attack on RMB by the Hedge Funds.. The Hedge Funds can use much safer strategies. They can even be brokers or partner with brokers to lower the transaction costs. They do not need to worry about any sudden event that might cause a "margin closeout".  They do not need to play the game of turning 200K to 5m. They will be quite happy to turn 200K to 400K in six months for now. When China runs out of Reserve, they will go for the kill. They will make billions and destroy the Chinese economy at the same time. (They are the foot soldiers in the Economic War.)


Just look back at the collapse of USSR and the Asia Financial Crisis.

[ltseung888]

Question 8: Can you describe the action from the point of the Hedge Funds (or crocodiles)?

The Hedge Funds will Open buy Orders for the USD/CNH pair betting the value to go up (RMB devalue). The Central Bank of China or its agents will do the corresponding sell order. The Hedge Funds will Open more buy orders until the Central Bank of China slows or skips some corresponding sell orders. That will force the USD/CNH pair value to go up somewhat.

The Hedge Funds can wait – even overnight as they are winning bets. The Bank of China will have to close their losing bets daily to avoid the additional loss in premium. That means the Bank of China is helping the Hedge Funds to win!

The number of trades and the amount involved are much higher than those from the combined retail Forex traders. The calculating retail Forex traders should always bet on the side of the Hedge Funds. (Bet with the winner.)

The Bank of China and its agents have zero winning chance in this "currency or economic" war. This war will drain the hard earned Reserve. Like one news reporter said: "It is like pouring sand to try to fill the sea. There is just not enough sand to do so."  When will China ever learn?

[ltseung888]

 Question 9: Do you think the crocodiles will pause and digest rather than attack constantly?


Yes. Some Central Bank of China Officials may be lured to say that there were never any threats. It was just normal market fluctuations. The top Chinese Economists should play the what-if scenarios with their computers.

[ltseung888]

Question 10: Will China be able to achieve the goal of having RMB as the Settlement and Reserve Currency under the current situation?


Will any Nation be stupid enough to hold a depreciating currency as Settlement and Reserve Currency?


If the RMB were rigidly pegged to the Dollar and occasionally China appreciates the RMB, that will be a different story. If the interest rate in Chinese is higher than that in USA, it will be even more tempting to hold RMB.


Who advised China to let "market force" determine the exchange rate? The crocodiles?

[ltseung888]

 Question 11: What will happen if China has its own Forex Exchange within China? All bets are placed with this Chinese Forex Exchange. The gain and loss are effectively under the control of the Chinese Government. In addition, the Chinese Government can theoretically produce infinite amount of thin-air money to do the trading.


The bets are actually propagated to the International Forex Exchanges. In such a setup, the Chinese Foreign Currency Reserve will never be drained. All it involves is printing more thin-air RMB. The daily Forex Transactions may exceed 10 trillion or more. China will have a "Place" for its citizens to "invest" the extra thin-air money. The Market Forces are no long the crocodiles. They are the almighty dragons!