Will include whether China is printing press? Whether to export deflation?
What should China in the global financial war? He should at least lower the exchange rate of the yuan against the us dollar and thereby try their problems to burden the rest of the world. Things that, if in relation to the dollar, the yuan will fall, this will mean that on the world market of goods from China will be cheaper, but the domestic market will experience growth in production, while imports will be less to get into the country. Imported goods will rise in price.
As will turn the situation in China? What will be done in terms of a currency
war, the Chinese Central Bank? Will start printing more banknotes? or something else will take. So far apart as to lower interest rates on loans until nothing was undertaken in 2015.
Europe and America are the main markets for Chinese products. There is not now behold stable prices in Europe fell for the third month in a row, the goods from China push aside all that makes Europe, deflationary pressure on Europe is growing. In England inflation also have it at a lot below the target, in the United States is also similar. As for Japan, there are increasing deflationary processes and very active. Similar processes in Japan had already taken place, then only a huge dollar inflows parity had been reached, the economy, and has saved it from collapse. In China about the same happening.
What happens in the rest of the World, in the World other than China? There all trying to reduce the value of its currency
, include machines and print money, also make your site different economic zones. In fact the more foreign exchange reserves of the national Bank, the more powerful is the country in this currency
If we compare the figures for balance China since 2005, has increased the money supply by more than 6 times, although for the past year in China make the stock exchange. This in turn gave the chance for the Bank of Japan to stabilize the situation. The European Bank starts to buy state bonds in the amount of one billion euros to increase its balance sheet in case of financial turmoil.
Probably not a secret is that for many countries, the weakening of the exchange is the only way to stimulate the domestic producer. China also plays a devaluation of the Renminbi, even if at the end everybody loses, China will still win. For businessmen who are connected with dollar area oscillations Chinese currency
is very expensive. If China open will be fighting on the currency
market, all the times will feel it in full force. Everything goes to it, currencies of many countries began to float freely, which heralds not the best times for the economies of many countries.
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