China, the useful idiot...

I read on an Italian forum this article, placed by someone who writes there. It talks about China. The Article is here: http://www.finanzaonline.com/forum/showthread.php?t=891184

This person affirms that since China entered the World market we have assisted to some noticeable unbalances.

I don’t know where our friend has been for the last twenty years but we have seen real unbalances for many years and actually since China has been around it has been the propeller of the world economy coming to help the economies more than mining them. The crisis we are assisting has got nothing to do with China, actually China is the one suffering for the American disgraces. He (or she) talks about the CNY USD pegging as the big damage to the world economy. I would like to remind this writer that China hasn’t got the currency pegged anymore and that revaluing the Yuan against the greenback it’s devaluing the amount of dollars in their hand and reducing their income from exports. Furthermore a dollarised economy served well America until the day before yesterday. So even claiming that the range was unfair is another lie.

Another false allegation is the one where it says that China is exchanging the cumulated funds from export into other currencies. I would really like to understand how people think the export works.

Let’s say I am an Italian exporter. I sell condoms to the States that pay back in USD. I keep these dollars, I give them to my bank and I ask them to convert them into GBP, for example? Just because the GBP has a better outlook?

Is this the best that Italian financial culture can express? Is it China, as State, exporting goods or are companies doing that? Where are Chinese buying their raw material from and how do they pay for them, in which currency? Do they really invest their money into foreign currencies? Or perhaps foreign shares?

I frankly think that too much TV is not good for anyone and when the TV is pure propaganda because we like to find some faults in the others, I think that we are really at a paradox.

Nice to know, as well, that the internal consumptions are at embryonic level. It means that our friend has some data available about it. Probably his sources are different from the most official ones…

Let’s forget about the rest because it’s typical small talks proving that there is still a lot to do to make people understand that disinformation is more dangerous than the wars he sees in act.

I really wish people would study before making fool of themselves and, to be very honest, I wouldn’t even publish my data to prove that everything said in that post is bullshit. I think that the person who wrote that post knows what he says and perhaps he will illuminate us with some facts, rather than words.