The good Dr. gives zero fucks about the PBOC’s efforts. He’s declaring insanity to be reigning inside the confines of the Chinese Central bank. What they’re doing, according to him, is unsustainable and will only lead to massive devaluation–to the tune of 10-15%.
Related: The Chinese government keeps tossing good money after bad, attempting to stabilize the Yuan, fending off capital outflows.
If you enjoy the content at iBankCoin, please follow us on TwitterThe central bank will say Sunday that the currency hoard fell by $118 billion to $3.2 trillion in January, according to economists’ estimates in a Bloomberg survey. That would exceed a record $108 billion decline in December, which brought last year’s total draw-down to more than half a trillion dollars and capped the first annual decrease in the reserves since 1992.
“China is facing a significant capital outflow problem,” said Krishna Memani, who helps oversee $217 billion as chief investment officer at Oppenheimer Funds Inc. in New York. “It’s an astounding reduction in their capital account position. This is an issue they’ve been aware of, and they have to find a way of managing it. The economy itself cannot turn this around.”
Whatever will I do Huckleberry?
ARK
New hero
https://youtu.be/PWrssmgerwo
Year of the monkey? Oh yes! Please play with my monkey!
Tell Me about it.
10-15%? Dude is an optimist. Try yuan/USD to 12, this year.
I wouldn’t even call 10-15% a devaluation. That’s a rounding error.