http://www.forexconspiracyreport.com/falling-chinese-exports-and-the-yuan/ Falling Chinese Exports and the Yuan Over the last five years the Chinese Yuan or Renminbi (CNY) has strengthened substantially against the US dollar. Only in the last year has the dollar reclaimed any lost ground. The strong Yuan coupled with a weakened world economy has hit Chinese exports. Our interest is in falling Chinese exports and the Yuan. Bloomberg Business shows the USD CNY conversion rate over the last five years. It shows a fall from 6.8 Yuan to the dollar to the 6.2 range. The path taken by the USA out of the recession was mapped out by the US Federal Reserve under its former chairman, Ben Bernanke. When the stock and real estate markets collapsed around the world roughly $7 trillion in equity simply disappeared. Bernanke is a recognized expert on the causes of the Great Depression. Knowing which road not to follow was critical for the American recovery. The Fed bailed out banks and the likes of General Motors. They instituted a stimulus program called quantitative easing in which they purchased as much as $85 billion in treasury bills and corporate bonds each month in three phases over six years. The end results were to, a cheaper US dollar and a substantially healthier US economy. But, how does this fit into falling Chinese exports and the Yuan? Weakened Chinese and World Economy Reuters reports that China’s March exports shrink fifteen percent year on year. China’s export sales contracted 15 percent in March [which is] a shock outcome that deepens concern about sputtering Chinese economic growth. The tumble in exports – the worst in about a year – compared with expectations for a 12 percent rise and could heighten worries about how a rising yuan CNY=CFXS has hurt demand for Chinese goods and services abroad, analysts said. The yuan’s strength was one factor in March’s 19.1 percent on-year decline in exports to the European Union and 24.8 percent drop to Japan. In a sign that domestic demand was also tepid, imports into the world’s second-biggest economy shrank 12.7 percent last month from a year ago, the General Administration of Customs said on Monday. By volume, coal imports plunged more than 40 percent in January-March. A rising Yuan has made Chinese products more expensive in virtually all markets. This puts downward pressure on Chinese exports. It also reduces demand from China for raw materials from a whole host of suppliers. The Chinese economy is hurting. Coal imports fell by forty percent as factories cut back. A strong Yuan has hurt Chinese exports and a weakened Chinese economy is contagious. Tying the Yuan to the Dollar The USA has worked its way out of the recession and has be best employment numbers in years. The oil fracking boom is helping the economy by keeping gasoline, natural gas and home heating oil prices down. And the US Federal Reserve expects to raise interest rates later this year.

1. By www.ForexConspiracyReport.com

2. Over the last five years the Chinese
Yuan or Renminbi (CNY) has
strengthened substantially against
the US dollar.

3. Only in the last year has the dollar
reclaimed any lost ground.

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5. The strong Yuan coupled with a
weakened world economy has hit
Chinese exports.

6. Our interest is in falling Chinese
exports and the Yuan.

7. Bloomberg Business shows the USD
CNY conversion rate over the last
five years.

8. It shows a fall from 6.8 Yuan to the
dollar to the 6.2 range.

10. The path taken by the USA out of the
recession was mapped out by the US
Federal Reserve under its former
chairman, Ben Bernanke.

11. When the stock and real estate
markets collapsed around the world
roughly $7 trillion in equity simply
disappeared.

12. Bernanke is a recognized expert on
the causes of the Great Depression.

13. Knowing which road not to follow
was critical for the American
recovery.

14. The Fed bailed out banks and the
likes of General Motors.

15. They instituted a stimulus program
called quantitative easing in which
they purchased as much as $85
billion in treasury bills and corporate
bonds each month in three phases
over six years.

16. The end results were to, a cheaper
US dollar and a substantially
healthier US economy.

17. But, how does this fit into falling
Chinese exports and the Yuan?

18. Weakened Chinese and
World Economy

19. Reuters reports that China’s March
exports shrink fifteen percent year
on year.

20. China’s export sales contracted 15
percent in March [which is] a shock
outcome that deepens concern about
sputtering Chinese economic growth.

21. The tumble in exports – the worst in
about a year – compared with
expectations for a 12 percent rise and
could heighten worries about how a
rising yuan CNY=CFXS has hurt
demand for Chinese goods and services
abroad, analysts said.

22. The yuan’s strength was one factor in
March’s 19.1 percent on-year decline in
exports to the European Union and 24.8
percent drop to Japan.

23. In a sign that domestic demand was also
tepid, imports into the world’s second-
biggest economy shrank 12.7 percent last
month from a year ago, the General
Administration of Customs said on
Monday.

24. By volume, coal imports plunged more
than 40 percent in January-March.

25. A rising Yuan has made Chinese
products more expensive in virtually
all markets.

26. This puts downward pressure on
Chinese exports.

27. It also reduces demand from China
for raw materials from a whole host
of suppliers. The Chinese economy is
hurting.

28. Coal imports fell by forty percent as
factories cut back.

29. A strong Yuan has hurt Chinese
exports and a weakened Chinese
economy is contagious.

30. Tying the Yuan to the Dollar

31. The USA has worked its way out of
the recession and has be best
employment numbers in years.

32. The oil fracking boom is helping the
economy by keeping gasoline,
natural gas and home heating oil
prices down.

33. And the US Federal Reserve expects
to raise interest rates later this year.

34. In a world of low interest rate this is
big news.

35. Smart traders are parking their assets
as dollars which drives the price of
the dollar up.

36. And because the Yuan is pegged to
the dollar it drives up the price of the
Yuan as well.

37. Falling Chinese Exports and
the Yuan

38. Forbes reports on China’s trade
numbers.

39. China’s exports slumped 15 per cent in
March against a year earlier in a sharp
reversal of the past two months’ growth
and raising the prospect of disappointing
first-quarter economic growth.

40. Jitters about the slowing Chinese
economy, for which Beijing has set a
growth target of “about 7 per cent” this
year, reverberate globally and have
already helped dent commodity prices.

41. Markets will be watching closely when
the country releases its estimate for first-
quarter gross domestic product on
Wednesday.

42. China is buying less as well as shipping
less: March imports fell 12.3 per cent
compared with the same month last year.

43. There is said to a bit of “lumpiness”
in Chinese reporting of trade figures
but nevertheless a 15% fall is
significant.

44. The concern beyond falling Chinese
exports and the Yuan is that when
China manufactures less it also buys
fewer commodities from the third
world.

45. These are countries that owe money
to China and buy their products as
well.

46. Falling Chinese exports could be a
sign of a significant economic
downturn and the need to uncouple
the Yuan from the dollar and let it
fall!