5 ms·
A possibility is that they believe that country no longer has much to gain from undervaluing its currency as its neighbors are starting to be real competitors i
by kissickas 8y ago
A possibility is that they believe that country no longer has much to gain from undervaluing its currency as its neighbors are starting to be real competitors in manufacturing, and now they're more interested in building up a consumer class.
- ianhawes 8y agoThis. China is transitioning quickly to a consumer based economy from manufacturing.
- doctorpangloss 8y agoOn the contrary, the market is signaling that Chinese consumers are reducing their spending, choosing to save even more. > [These sales] will help finance the deficits without running up a dangerous amount of debt in foreign currency. That's why they're selling! The arbitrage, really, is that sales of this nature are very technical and not well understood by consumers. They signal bear market like a yield curve inversion does. But because it's so technical, the average person's confidence isn't impacted the same way that a headline, "China is Hunting for Foreign Buyers of its Empty Apartments" would. Even though both have similar macroeconomic effects, given enough scale.
- deleted 8y ago[deleted]
- scoot_718 8y agoThe idea that Chinese citizens save most of their income has been wrong for about a decade. They're carrying a lot of private debt.
- AlexCoventry 8y ago> sales of this nature... signal bear market like a yield curve inversion does How? How is this different from the treasuries the US sells every year?