2015-04-28

Chinese QE Is Coming: Renminbi Headed Lower, Buy Gold, Silver, Commodities and Equities

中国式QE将形成独立的“游泳池”
First, the reason for today's financial difficulties arise, because the rate of return on capital investment declining results, but also the financial expenditure and economic growth can not match ending, extrinsic aging phenomenon is exacerbated by fiscal spending and sacrifice the environment for growth model is not sustainable. Thus, when the country needs to improve management efficiency, improve the efficiency of the use of financial, economic efficiency and thus recovery. However, the central bank to buy bonds anyway, can not solve the problem of economic efficiency, are avoided solve the problem, so as loose personal view is that the introduction of such a QE from the beginning, the exchange rate officially entered the downward track.

Second, will the renminbi foreign exchange rate immediately depreciate? It may not in the short-term. However, it will immediately "reinforce and improve the walls of the pool," so that the pool of capital selectively and out, in order to meet the requirements of SDR. If added to the SDR, central banks will need to buy the yuan, it will ease pressure on the yuan devaluation, which a little desperate, if the yuan cannot join the SDR, you will need an abacus to calculate the exchange rate.
Gold, silver, commodities and equities PRICED IN YUAN are headed higher.

No comments:

Post a Comment