Bitcoin Forum

The People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan’s appreciation.

“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting. Neither Yi nor Zhou gave a timeframe for any changes.

China’s foreign-exchange reserves surged $166 billion in the third quarter to a record $3.66 trillion, more than triple those of any other country and bigger than the gross domestic product of Germany, Europe’s largest economy. The increase suggested money poured into the nation’s assets even as developing nations from Brazil to India saw an exit of capital because of concern the Federal Reserve will taper stimulus.

Yi, who is also head of the State Administration of Foreign Exchange, said in the speech that the yuan’s appreciation benefits more people in China than it hurts.

And so it begins :) this is one of the warning signs I was waiting for.

so basically now china wants the strengthen its own currency, which will drive out foreign investment right?

It will drive out weak and debt based investment, if other countries want to trade with them they're going to have to fix up their economies and make their currency worth something to others. Not only that, we have Bitcoin ffs, it's worth $1000 right now, I'm pretty sure that any of us who have half a brain are going to be entirely capable of trading with the Chinese.

The people who complain about a rising Yuan are the ones who benefit from the previous system of money printing.

They're getting fuck all in return for those exports, paper money is debt, so all those western countries who are 'helping' China grow are really just in a parasitic relationship, it's the equivalent of someone staying in your house, eating your food and sleeping in your bed forcing you to work for longer hours and then having the balls to tell you that they're giving you extra employment by making you work longer for them. The only difference is this is happening with entire countries.

The same thing is happening with other resource/production based countries in Europe as well, Germany, Norway etc. are feeding the habits of all the other countries like Italy, Greece and Spain who don't produce anything or trade things in equal value.

The reason other countries' currencies are low is because they are being continuously devalued or countries hardly produce anything and trade it, it's fraud, plain and simple, why should China just keep letting itself get conned out of it's exports for nothing? That's all that's happening here, sure they could lower the price but they'd have to make sure that they were actually getting something in return.

Also, paper being debt is a fact and not something you can just brush off whenever you debate currencies/economics.

That's not the problem! You're saying the opposite.
China is keeping the yuan undervalued so their products could be sold cheaper. They don't want to lower the price of their currency.

Is the US dollar a worldwide ponzi scheme? Yes, there are no doubts. I predict the collapse in less than 10 years.

Stop being in denial Niothor, that kind of thing doesn't work now :P

Have you seen the rate that we're printing money and how the federal reserve is acting exactly like you while also bluffing about tapering at the same time? I think 10 years is a real possibility, 5 years could also happen depending on how desperate they get. The financial crisis in 2008 - 2009 practically happened overnight as well, you're going to be in denial about that too or are you going to claim nothings going to happen still? America and Europe's biggest creditor is getting ready to abandon it, that's actually one of the biggest signs I've seen so far and leads me to believe western economies will end up collapsing far sooner than 10 years depending on how eager China are to get rid of the government treasuries they hold.

We won't know for sure the exact timing but with how desperate all our leaders are getting I'm not sticking around to see if they do anything sensible.

Also you already said that 10 years it's a possibility. It means you don't see this as certain. That's enough for me.

That's because I have calculated there's a chance that the leaders might band together and suddenly 'save' the economy through some mad scheme like discovering an alien race and dumping all the debt on them. I very rarely am 100% sure on something unless it's blatantly obvious to me.

It could happen, but with Bitcoin the whole game has changed, I think people will just move their money out and let the governments collapse before they come up with anything, we now have a way to effectively protest against government decisions that politicians can't change.

Oh please you mean like how they 'successfully' shut down Piratebay and Silkroad? Like how they went after filesharing?

*Downloads an episode of The Daily Show and The Big Bang Theory just to piss them off more*