China 'ready for currency war'

Published: 2 Mar 2013 at 14.34
Online news: News

BEIJING - A top Chinese central banker says his country is "fully prepared for a looming currency war", state media reported on Saturday.

However, the conflict could be avoided if major countries observe the consensus reached at the recent G20 meeting to focus monetary policy primarily on domestic economies, said Yi Gang, deputy governor of the People's Bank of China.

G20 members "had shown no signs of scaling back monetary easing that has injected a flood of cash into global markets" the Xinhua news agency said, highlighting the 20% depreciation of the yen against the US dollar since Japanese Prime Minister Shinzo Abe took office in December.

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hillfarang
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Discussion 6 : 03 Mar 2013 at 09.346
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When I first went to China about 15 years ago, a dollar bought over 11 yuan. Now it's just over half that.

I agree that before the USA ($) and Europe (euro) complain that they should each get their economic houses in order. This includes austerity as well as currency controls. I believe the days of the dollar as the World's reserve currency (mostly due to KSA agreeing to price oil in dollars) are numbered. All Empires decline... just ask the UK about their "pound sterling!"
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NoodlesPhD
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Discussion 5 : 02 Mar 2013 at 19.025
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Russia is currently the largest buyer of gold followed by China…USA is currently watching Honey Bo Bo on TV. Any Japanese with their savings in gold or silver bullion (coins, bars etc) lost zero purchasing power, if they held Yen, they just got a 20% shave.
Gold is money…just give your Thai girlfriend a gold necklace and you will learn this lesson very quickly.
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onlyasking
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Discussion 4 : 02 Mar 2013 at 17.534
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D2 What China will also do is to sign bilateral agreements that will enable trade between countries without using the US$. They have started with it and if they succeed it will undermine the $. By doing this the trading countries saves about 3,5% in trading cost. Interesting to note that Chinas gold production increased with 12% last year and as you said they still became a net importer.
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txapi
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Discussion 3 : 02 Mar 2013 at 17.173
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Bring it on! I welcome a rise in gold prices!!! Early retirement here I come!!!
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Worzel
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Discussion 2 : 02 Mar 2013 at 16.352
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China has recently moved from a leading exporter of gold to being a major importer. They may back the Yuan with gold. This would be a game changer.

Of note, the Germans requested for the gold held by the US since WW2 to be returned. The currency or money war is well under way but the sheeple have no notion of what it means.
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davidh
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Discussion 1 : 02 Mar 2013 at 16.291
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You cannot expect China to embark on a program to re-value its currency until Developed Countries make moves to reduce the money supply - they call it quantitative easing these days I believe.
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China 'ready for currency war' | Bangkok Post: business