On the «bombshell» dropped by China on 20 November 2013 (I) [Strategic Culture Foundation / Sweet & Sour Socialism Essential Archives]]

Valentin KATASONOV | 29.11.2013

Since 21 November, an article by well-known financial analyst and blogger Michael Snyder under the headline «China announces that it is going to stop stockpiling US dollars» has spread through the media like wildfire.

* Michael Snyder’s article *

We quote: «China just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media. The central bank of China has decided that it is ‘no longer in China’s favor to accumulate foreign-exchange reserves’». Michael Snyder’s article predicts that China’s decision will have serious consequences for the United States. According to Snyder, even if this bombshell does not destroy America, it will still cause the country enormous damage. Can it all really be as the American analyst claims?

The bombshell itself, according to Snyder, was dropped on 20 November. It was dropped by a deputy governor at the People’s Bank of China in a speech at an economic forum being held at the Tsinghua University. «It’s no longer in China’s favor to accumulate foreign-exchange reserves», writes Bloomberg, quoting the official’s speech. According to the official, the appreciation of the yuan benefits more people in China than it hurts.

It is curious that Snyder, who is an experienced blogger («The Economic Collapse» blog) and a shrewd analyst, interpreted the official’s statement so emotionally. In our opinion, there is nothing particularly sensational in his words.

Firstly, similar statements have been made in China before (always very cautiously), but they never lead anywhere…

Full Part I article link: http://www.strategic-culture.org/news/2013/11/29/on-the-bombshell-dropped-by-china-on-20-november-2013-i.html

Part II link: http://www.strategic-culture.org/news/2013/12/01/on-the-bombshell-dropped-by-china-on-20-november-2013-ii.html


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