NOTE: I realize The Epoch Times is very anti-CCP, but this short piece is also worth reading.
- Sovereign currency policy faces the intractable dilemma of what economists call the “impossible trinity.” Countries can have a fixed exchange rate, free capital flow, or sovereign monetary policy but must choose only two of three. Economics textbooks give clean and clear definitions of each. Still, in reality, China tried to manipulate each and come out worse due to its attempts to manipulate the laws of economics.Chinese Communist Party (CCP) technocrats attempted to create a system where they could enjoy the best of the three options and leave behind the worst parts. China implemented a quasi-fixed exchange rate, which is effectively a U.S. dollar index, with tightly controlled capital flows, and a semi-sovereign monetary policy. READ MORE
Similar Posts:
- Meet The 7 Men Who Will Rule China (Epoch Times / ZeroHedge)
- China to Exert Greater Financial Discipline This Year (BNP Paribas AM)
- Kyle Bass: China’s Xi Intentionally Crashing Property Market, Preparing For War (Epoch Times)
- Some Key Points: The Renminbi & China Commercial Paper Market (KraneShares)
- Prepare For Capital Controls – The Third Horseman Of The Unholy Trinity’s Apocalypse (FortuneAndFreedom.com)
- Emerging Market Links + The Week Ahead (October 10, 2022)
- Why China’s Marriage Crisis Is An Existential Threat To The Country (Epoch Times via Zero Hedge)
- What’s Really Driving China’s Currency Stability (KraneShares)
- Secret to Enduring Stagflation Sends Traders to Emerging Markets (Bloomberg)
- China’s Local Equity Market: ‘…How and Where and Who’ (Aberdeen Standard)
- Lazard Emerging Markets Fund Manager: Full-blown Financial Crisis in China is Unlikely (FE Trustnet)
- Moody’s Downgrades Macao to Aa3 with Negative Outlook (Moody’s)
- China Congress Ends As “Dictator For Life” Xi Stacks Inner Circle With Loyalists; Equity Market Implications (Zero Hedge)
- One Of China’s Biggest Commodity Traders Faces Liquidity Crisis (Zero Hedge)
- The Future of Yuan (Express Tribune)