politics

China 'fully prepared' for currency war: banker

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China rearing it's ugly, greed,y head. This will only get worse.

10 ( +12 / -2 )

China has been "manipulating " its curency for a long time. So this is no new threat.

9 ( +11 / -2 )

"The yen is down 15% against the dollar in 6 months..."

But it was 110 yen to the dollar in 2008 and touched 76 in 2012. That was over a 30% difference in four years. I've asked this before, where was the Chinese, or international outrage for that matter, when the yen was at 76? I'll answer my own question, there weren't any complaints whatsoever, because everyone else benefited.

7 ( +10 / -3 )

I think it goes without saying there has occurred some currency manipulation. My question is what do you call 4 years of quantitative easing in the US, or the bond purchases by the EC. Where was China's concern when the Yen went from 125/$ to 75yen?$? How did South Korea express its opposition to this? For how many years has the US Congress debated the issue of China manipulating its currency. How many time has Obama spoken on this very issue. Sure, Japan is doing it, my question is, who isn't/hasn't?

5 ( +5 / -0 )

Is this not the "kettle calling the pot black"? (Not asking for free English lesson). There is no reason that yen should be 75 to the dollar. That is a fallout of the financial catastrophy the UN unleashed on the world in 2007, when nobody wanted to have dollars or euros. There is no reason Japan should suffer for the catastrophy made in the USA.

5 ( +5 / -0 )

China's ultimate bet is that once everything is played out on this finite planet the last few people still grubbing a living will be Chinese. It is never about creating something great but about being able to outlast. We see this in almost every policy and every threat.

4 ( +4 / -0 )

Yes, "fully prepared" is an odd comment considering that China has been by far the largest currency manipulator in recent years. And South Korea is not far behind.

4 ( +6 / -2 )

"Do you think S Korea, China and even the US will stand by and allow Japan to manipulate the yen to benefit exports."

As of yet, the US hasn't raised any objections to yen weakness.

4 ( +5 / -1 )

By blaming China for everything under the sun

I think there are "some posters" here that seem to blame Japan (or Japanese culture) "for everything under the sun" and would even take the side of some unjustifiably (given China's own longstanding, documented currency controls) aggressive Chinese bank official. But really, what Westerner in his or her right mind (assuming you are a Westerner in your right mind) would rather support a Chinese government over a Japanese government? At least weinjapan can see uncensored James Bond movies, watch youtube, surf the full freedom of the net, and not have to worry too much about our human rights should we want to criticize that Japanese government.

4 ( +4 / -0 )

AsianhometownMar. 03, 2013 - 11:57AM JST Im no fan of China but It amazes me how people can blame China for the potential currency war. Mr Abe started this >by driving down the yen by 15% against the dollar.

Abe "started this"? Do you realize how long the Yen has been overvalued?

4 ( +4 / -0 )

China is the largest producer and importer of gold -so I would say they are the most prepared for a currency war. Still they have a billion+ people to protect from a fiatcurrency shock.

Historically their currency has been silver.

China's use of silver as a medium of exchange is reflected in the name for bank "銀行" (literally "silver house" or "silver office") and for the precious metal and jewel dealer "銀樓" (literally "silver building" or "silver shop").

3 ( +3 / -0 )

Some people are really overreacting.

In what way? By saying China has always manipulated and totally controlled its own currency? By saying China didn't complain when it took only 76 yen to buy a dollar?

3 ( +3 / -0 )

The yen is down 15% against the dollar in 6 months while the Chinese yuan is up about 2% over the last 12 months. Clearly Japan aims to stimulate exports by pushing it's currency lower. The Chinese response so far has been muted. Japan needs to avoid following this course further or a regional bout of competitive devaluations will end with no winners.

2 ( +3 / -1 )

True, Billyshears. Compared to China Japan looks freeeeee.

2 ( +2 / -0 )

@asianhome, you have got to be kidding right? before the US got there printing press going into overdrive the yen was about 110 it the went as low as 76 now Japan has joined in and brought it back up to a somewhat normal level everybody is blaming Japan!? China USA EURO SK to name a few have all been doing it long before Japan even considered it. any criticism from them just make the hypocrites!!

1 ( +2 / -1 )

The currency is the real issue and I do not like the value of a currency to be stripped away (inflation). Plus the interest rates are low and many aged savers in Japan will take a hit on interest, plus the costs of goods will go up (money worth less), creating a financial crunch specifically for those on limited (fixed) income.

Uncertainty in BOJ leadership (Masaaki Shirakawa stepped down) should be a concern also.

Prime Minister Shinzo Abe has turned to Mr. Kuroda, 68 – and equally dovish academic Kikuo Iwata, a strong critic of previous bank policies, as one of his deputies – largely because of their shared view that a more aggressive monetary policy could help stimulate growth, weaken the yen and arrest nearly two decades of crippling deflation.

1 ( +2 / -1 )

@ Konsta

I agree with your latest two comments. Some posters here really need some critical thinking instead of just blindly criticizing other posters that post comments that carried disagreement with Japan handling of the monetary strategy of those that immediately point at China when ever there is a comment that not to the taste of the Japanese public.

0 ( +1 / -1 )

China prepared for a currency war after they had already been devastated by a currency war. What morons. Bernanke already stuffed your economy with "hot money" so that inflation is now robbing you of wealth. When Bernanke pulls out all the "hot money" from the Chinese economy, then all those bubble assets will burst. Yes, we've got the BOJ creating "hot money" but it just wasn't needed. Bernanke did it all by himself.

0 ( +0 / -0 )

And I agree this all started with Bernanke printing dollars like crazy.

0 ( +1 / -1 )

Umm, How can I say this? We are already in a currency war... When you have entire continents stimulating their economies with an endless supply of liquidity, you have already began the currency war. Why do you think the Yen and Swiss Franc strengthened so much? Because it was a safe haven for investors to flock to. What Japan is doing is no different than the US and EU... And as for China, well they live on stimulus! Where would its large enterprises stand without the Central Government's endless subsidizing? Lets look at the Shadow Banking in China, where they lend like banks and do not have to adhere to regulations. The Non-Performing Loans (NPL's) in China is staggering! They, teh US, and the EU are only preventing the inevitable... A complete economic meltdown! We basically have moved from a credit bubble to a liquidity bubble worldwide! Japan wants inflation, its going to get plenty in less than a decade, we all will!

0 ( +0 / -0 )

And just to piggyback, China's currency hardly circulates around the world... Nobody wants to really hold that paper because they are on the brink of the bubble bursting... Every country out there wants a weaker currency so therefore its nobody's fault! Quit pointing the finger... China could be handled so easily! Just stay out of their way and let them keep doing what they are doing! Raise the military budget 10% and yet do nothing about the toxic air that has engulfed the country. The fallout will be massive to an already backwards healthcare system. Someone up top quoted the Chinese proverb about waiting by the river long enough and eventually your enemy's corpses will float by... This could not be any more true with China! Ignore them long enough and they will destroy themselves within...

0 ( +0 / -0 )

@Moonraker

Ancient Chinese Proverb: If you wait by the river long enough, you can see the bodies of your enemies floating by.

-1 ( +0 / -1 )

blah blah blah yawnnn anyone who thinks the yen is undervalued should have their head examined china is the largest currency manipulator the government controls the forex market in china and has a cap on how much yuan can be traded offshore plain and simple so when you complainers can find time to research this accurately then join the conversation

-1 ( +0 / -1 )

and for your info china buys more american and japanese bonds than any other country which has long kept their currency at an advantage if your economy is growing at 10% for 10 years and your able to maintain being the global manufacturer it isnt because you are good at making quality products its because your currency is cheap which makes your labor cheap and that makes your product cheap nextttt.

-1 ( +0 / -1 )

China is fully prepared for any kind of war, it seems. Yen remains overvalued on a historical basis and even more so if we take fiscal deficit and current account deficit into account, plus aging population. 130 to 150 to the dollar feels about right to me. not that I am any kind of expert.

-1 ( +0 / -1 )

@ semperti

I wonder whether you do read some of the world currency analysts reports on the value of the Yuan for the last two years. They all had commented that the Yuan against the US dollars is at fair value.

Countries including Germany are making noise on the large devaluation of the Yen due to Abe monetary strategy. I can appreciate his desire to make Japanese goods more export orientated but by the same token Japan should not point figures at other countries that would repeat the same scenario as Japan in making their export cheaper in the world market place.

-2 ( +1 / -3 )

billyshearsMar. 03, 2013 - 05:51PM JST ... I think there are "some posters" here that seem to blame Japan (or Japanese culture) "for everything under the sun" and would even take the side of some unjustifiably (given China's own longstanding, documented currency controls) aggressive Chinese bank official. But really, what Westerner in his or her right mind (assuming you are a Westerner in your right mind) would rather support a Chinese government over a Japanese government? At least weinjapan can see uncensored James Bond movies, watch youtube, surf the full freedom of the net, and not have to worry too much about our human rights should we want to criticize that Japanese government.

Don't you see yourself the logical contradiction (and more) in "How can you even criticize the government, which doesn't punish us when we criticize it?" Besides, how is this denial of critical thinking in many forum members is even on topic? Also, whom among democratic and free US or democratic and free Europe or democratic and free Japan will you choose to support, when the currency war starts?

-2 ( +0 / -2 )

paulinusaMar. 03, 2013 - 12:02PM JST ... As of yet, the US hasn't raised any objections to yen weakness.

(paulinusa, I have taken your post not to contradict, but as a starting point.)

Nor did the Chinese.Not in any serious form. Similar to Smithinjapan, I do not see anything special in Yi's speech. Why people assume that his words are about the 15% yen devaluation? Why people even assume that he is speaking about Japan and to Japan?

These are not his words, but of some unnamed critics (who are probably not even Chinese, but mostly American and European):

Those fears have largely been fuelled by the recent steep decline in the Japanese yen, which critics have accused Tokyo of manipulating to give its manufacturers a competitive edge in key export markets over Asian rivals.

He is speaking to all the nations (very sanely), and particularly to the US and Europe, to avoid the currency war and to keep the current dollar based (US made) financial system intact. In the case, when the US, Europe, Japan and BRI will start devaluation, China will follow. What is special in these statements, and where he refers to Japan and not to what may happen in the future? They are exact statements everyone is saying.

Nobody is making serious noise about Japan. Enjoy your Abenomics. People are worried about who will follow and what will be the scale of the disaster.

-2 ( +0 / -2 )

billyshears: "In what way?"

By blaming China for everything under the sun -- some posters claiming they just hope "when it's all done there are some Chinese left grubbing", etc. -- when any threat of a currency war started right here in Japan with 'Abenomics'. So China says it's prepared, and that's all there is to it.

-3 ( +1 / -4 )

Some people are really overreacting. China is just saying it's ready if it comes down to a currency war, nothing else. If any nations are trying to start one, I think we all know which ones they are.

-4 ( +1 / -5 )

paulinusaMar. 03, 2013 - 11:38AM JST

But it was 110 yen to the dollar in 2008 and touched 76 in 2012. That was over a 30% difference in four years. I've asked this before, where was the Chinese, or international outrage for that matter

You keep asking and ignoring the answers. Once again.... when the Japanese Yen was at 110 to the dollar, it was at the tailend of a G7 approved Japanese currency manipulation to weaken the Yen. If not for the 2001 - 2007 G7 approved currency manipulation - a breathing space which Japan had promised to use to restructure their economy away from an export driven one. A promise Japan failed to keep - the Japanese Yen would have in all likelihood have hovered in the mid Y90's to the dollar from 1996 to 2008.

Is it really that difficult to comprehend?

-5 ( +2 / -7 )

Im no fan of China but It amazes me how people can blame China for the potential currency war. Mr Abe started this by driving down the yen by 15% against the dollar. Do you think S Korea, China and even the US will stand by and allow Japan to manipulate the yen to benefit exports.

-6 ( +3 / -9 )

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