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Title: Just found this news atricle Post by: joburgtaxi on November 25, 2013, 02:30:43 PM Hi
I just found this news article and it seems that the inevitable is starting to happen. http://wallstreetsectorselector.com/2013/11/china-announces-going-stop-stockpiling-u-s-dollars/ (http://wallstreetsectorselector.com/2013/11/china-announces-going-stop-stockpiling-u-s-dollars/) Title: Re: Just found this news atricle Post by: Hawker on November 25, 2013, 04:08:39 PM Why would that matter? The yuan is over-valued and will fall against the dollar once it floats. That's one reason Bitcoin is doing so well in China - its perhaps the only freely convertible currency.
Title: Re: Just found this news atricle Post by: Sindelar1938 on November 25, 2013, 04:49:02 PM China keeping even a small fraction of forex reserves in btc is a game changer
Wait and watch And pray.. Title: Re: Just found this news atricle Post by: Topazan on November 25, 2013, 11:53:41 PM Why would that matter? The yuan is over-valued and will fall against the dollar once it floats. That's one reason Bitcoin is doing so well in China - its perhaps the only freely convertible currency. What makes you say that? Seems to me the dollar is over-valued vs the yen. How else do you explain our ability to maintain such a massive trade deficit with China for so long?Title: Re: Just found this news atricle Post by: Spendulus on November 26, 2013, 03:31:40 AM Why would that matter? The yuan is over-valued and will fall against the dollar once it floats. That's one reason Bitcoin is doing so well in China - its perhaps the only freely convertible currency. What makes you say that? Seems to me the dollar is over-valued vs the yen. How else do you explain our ability to maintain such a massive trade deficit with China for so long?Title: Re: Just found this news atricle Post by: Topazan on November 26, 2013, 09:32:47 AM Sorry, that was a typo. They do share a common etymology.
Title: Re: Just found this news atricle Post by: jdbtracker on November 26, 2013, 09:45:46 AM May not matter, considering how many people have BTC, it could drive the rest of the world into cryptocoins to avoid devaluation, after all how easy is it to spend Gold?
Title: Re: Just found this news atricle Post by: Hawker on November 26, 2013, 10:31:33 AM Why would that matter? The yuan is over-valued and will fall against the dollar once it floats. That's one reason Bitcoin is doing so well in China - its perhaps the only freely convertible currency. What makes you say that? Seems to me the dollar is over-valued vs the yen. How else do you explain our ability to maintain such a massive trade deficit with China for so long?2 questions so 2 answers: 1. Capital controls in China are strict. It’s easy to bring money into the country, but getting it out (to invest or spend) is more difficult. That means there are are plenty of wealthy Chinese citizens and residents looking to move their money around the world with greater freedom. - See more at: http://marginalrevolution.com/marginalrevolution/2013/11/china-and-the-soaring-price-of-bitcoin.html#sthash.jC8Yzyqn.dpuf 2. As to the trade deficit, since 1974, the container revolution has meant that factories worldwide compete on a level playing field so countries wither high wages see their industrial bases squeezed. For example, when I imported TVs from China, it cost less to get the TV from Shenzhen to Felixtowe that from Felixtowe to London. UK wages are falling in real terms and at some point the UK worker will cost as little as the Chinese worker. Meanwhile, a trade deficit is inevitable. Title: Re: Just found this news atricle Post by: NUFCrichard on November 26, 2013, 10:35:48 AM I don't think they plan to start hoarding BTC? It's a little bit small for that.
It is massively important for the $ losing it's reserve currency status, and ending the current debt fueled bubble with a huge currency collapse. |