Sunday, December 18, 2016

Zero Hedge — Caught On Tape: China's Currency Rigging


The "currency rigging" involves is China's supporting the peg rather than let the market break the peg by driving the RMB down.

China needs to float and let the RMB stabilize. Any devaluation will be one-off. 

2 comments:

Matt Franko said...

If they remove the peg, their currency will go UP...

No way their people will put up with having to breathe thru knock off Nike sweatshirts eventually... their standard of living will go UP, which means their currency will go UP...

The HZICs (head zombies in charge...) are suppressing the value of their currency... they are paying MORE yuan per USD... MORE yuan paid per USD means the currency goes DOWN... they remove the peg and the yuan goes up along with their domestic standard of living....

Schofield said...

The baked-in-defect of money is having no intrinsic value, it's therefore open to manipulation and accordingly Ricardian Comparative Advantage is deeply flawed too!