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发帖数: 344 | 1 Here's what I got from todays headline: China hits Back at U.S on Yuan
rights. See below:
Do you guys know what the face value really means to a certain currency? If
China holds Yuan's value down, the domestic suppliers must be hurt by the
reluctant price rises, while simultaneously benefits the US producers for
cheap prices of their products. That was why US always try to force China to
stop suppressing the value of Yuan.
Now let me talk you about the T-bill (Treasury bills) issue. Do you believe
the US has really been hurt by owing too much money to China? I would like
to say yes to the people, both in China and the US. But it has significantly
filled up the wallets of someone who are hiding behind all the time. Why
the Fed never felt anxious about such a huge debt held by America to China?
Because that's exactly one of the major supplies of their profits. Here what
the case features: exploiting valuable loans from China when the value of
USD is stable, and then devaluate it while paying these loans of, therefore,
what Chinese people get back from the US at the maturity of T-bills is
merely some disvalued greenback!
So now you might want to ask, how does the Fed manipulate the value of USD
at will? Well, fairly easy, keep this in mind, they captured the authority
of printing dollars almost a century ago. If they wanna devalue the dollar,
just print as many as they can, provide enormous money supplies to uncle
Sam right at the moment that most of the T-bills sold to China are matured.
Then they paid these disvalued greenback plus valueless interests to Chinese
government. Thus as you can see, what can we get then?
At last, let me discuss why sometimes Fed wants to print a tremendous
amount of money. Those guys spread open their loans to people who need them
to expand their business. Therefore, lots of loan-backed assets start
cumulating. When the business scale of the market reaches a degree. Fed
starts taking actions-- suddenly cutting the money supply off, consequently
all these loan-backed assets will face an unprecedented slump on value due
to the lack of backing from their loans, which then facilitates those guys
hiding behind the Fed to take over the scattered assets in the market with a
cheap cost. Isn't that a perfect deal? |
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