874 China should shed its bourgeoisie worries, about the value of its currency Yuan!

Here is a REUTERS news report dated 5th Jan. 2017 originating from Singapore, about the anxieties relating to the falling value of Yuan, and the Chinese dilemmas on whether to devalue its currency further, or to spend part of its $3 trillion forex reserves to support its Yuan, by selling US Dollars and buying its own currency. China is the world's Second Largest Economy. Chinese Forex Reserves as on date are the World's largest. Most of the Dollar reserves, though OSTENSIBLY and THEORETICALLY are owned by the Chinese Government, at field level, the US Dollar funds are owned by the Capitalists of not only USA, but also Canada, Europe, ANZ, probably South Korea, Singapore, or indirectly even Japan through proxies and fronts. Here is a link to AsianAge.Com: Click to go to http://www.asianage.com/business/economy/060117/fears-arise-about-chinas-forex-reserve-dip.html, and study Fears arise about China’s forex reserve dip. There is also a forecast that: "Vicious cycle of more outflows and currency depreciation looms large". The report says:--

While the world’s second-largest economy still has the largest stash of forex reserves by far, it has been churning through them rapidly since August 2015, when it stunned global investors by devaluing the yuan and moving to what it promised would be a slightly freer and more transparent currency regime.

Since then, authorities have repeatedly intervened to support the yuan when it weakened too sharply, burning through half a trillion dollars of reserves and prompting them to sell some of their massive holdings of US government bonds.

They also have put a tightening regulatory chokehold on individuals and businesses who want to move money out of the country, while denying they were imposing new capital controls.

Concerns over the speed with which China is depleting its ammunition are swirling, with some analysts estimating it needs to retain a minimum of $2.6 trillion to $2.8 trillion under the IMF’s adequacy measures.

yb-a-donkey personal views which are not intended to be imposed on others:

In Telugu language spoken by 100 million people across the world, there is a proverb: "aDusu tokkanEla, kAlu kaDuga nEla" ? Approx. Engl. purport: Why should a person tromp in mud, and get compelled to wash his feet?

Another Telugu proverb: "parugetti pAlu tAgE kannA, nilabaDi nILLu tAgaTam mElu". Approx. Engl. gist: It will benefit to drink water while standing, when compared to drinking milk, chasing and running.

Third Telugu proverb: "gOdAvari Ita, lanka mEtA!" . Approx. Engl. meaning, with context: Godavari is a very wide river in South India, with significant number of islands (lanka) in its meanders. Godavari flows with large water masses, currents and waves. The Lanka lands have good grass meadows, nutritious for cattle to graze. When there are no fierce floods, cowherds take their buffaloes to Godavari islands for grazing. Both to and fro, buffaloes are made to swim in the Godavari River for reaching the islands. In the process, the buffaloes get tired and weary, by the time they reach their homes in villages. In the Chinese Context of swimming Chinese Rivers, who are the sufferers: Chinese Working Class.

vrishaNAla prayAsa (Fatiguing labor of Testicles)

A fourth Telugu idiom is also worthwhile to quote: vrishaNAla prayAsa. Approx. English: vrishANamu (s), vrishaNAlu (plural) = testicles. prayAsa = labor which causes fatigue, without yielding any results. This idiom might have been of some importance during those Centuries when Procreation and Reproduction were the objects and goals of sexual inter-course. When a sexual intercourse resulted NO OFFSPRING (no conception and pregnancy), all the labor was regarded as "Futile fatiguing labor of testicles". Today, after sterilisation of couples for family planning, every sexual intercourse has become 'recreation oriented' , though it does not result in birth of an off-spring. The entire Stock Exchange Speculations, Currency Exchange Speculations, in reality, are only vrishaNAla prayAsa (Fatigue of Testicles).

Though the Great Messrs. Bill Gates, Warren Buffet et al., Investment Institutions, Banks and Brokers like CitiBank, Goldman Sachs, Barclays Bank, Deutsche Bank, etc. and their Investing Agents, Experts are worshiped with great reverence by Stock and Currency Brokers, in reality everything is only vrishaNAla prayAsa. What happens in Wall Street may benefit Messrs. Bill Gates, Warren Buffet and their tribes, including Mr. Donald Trump who himself is a business tycoon, how their prosperity is going to sustain themselves (they can fatten themselves, but they can't eat everything they accumulate), and lowest Strata Working Class in United States or Europe?

China poses, even today, as a Communist country. That means, theoretically, it is ruled by its Proletariat (Working Class). For survival, and also as a part of international symbiosis, and also mutual sustenance and dependence, societies and countries have to export and import. There is nothing wrong in that.

There is also nothing wrong for a Communist country to have State Capitalism. That is, all the Capital and the Productive Assets and Means of Production belong to the State, and the State can meet the needs of its people, either through domestic production or through exports/imports, or both. So far so good.

What can be the primary tasks of a genuine Communist Government?

The primary duty and task of a Communist Government, ought to be to produce the food, clothing, shelter, old age security, health and education needs of its Citizens. Ordinarily, these should be produced domestically. Sometimes, on account of droughts, floods, earthquakes, and other calamities, domestic shortages may arise, for which imports of the essential commodities may have to be done for distribution to population, whenever scarcities become rampant.

Nothing wrong in import of raw materials and export finished goods after production

If a country needs raw materials for running its industries, it can definitely and re-export the finished products, thus earning some surpluses. Okay.

Nothing wrong in foreign borrowings, for import of latest technology and Capital Equipment

Upto maximum and optimum levels, even State Capitalism, a Communist country can mobilise its INTERNAL resources (e.g. dig out all its minerals, use all its lands, employ its coal for thermal power etc.), for maximising its production to meet its domestic needs, and export needs.

NEED FOR EXPORT-ORIENTED PRODUCTION

As long as imported goods, machinery, foreign borrowings are used for production of goods intended for export, a country can meet its payment obligations, dividend payment obligations, Capital-Repatriation obligations without much tumult.

UNFORESEEN GLOBAL RECESSIONS AND DEPLETION OF EXPORT DEMAND

Unforeseen changes in demand for goods, can trouble a country, its exports, to some extent. Ordinarily, a country should be able to overcome this type of slack export demand, after one or two years. Our current global recession began in 2008. As long as American Government and American Citizens, European Governments and European citizens, went on with their profligate ways, the imports of those countries cannot really fall steeply for a long periods. And there are indications, that those countries and their citizens are returning to their old ways of liberal consumption patterns, through imports. Then why should Chinese Economy, Chinese Exchange Reserves, Chinese currency suffer?

OBESITY OF CHINESE ECONOMY, ABSENCE OF TRUE MUSCLES IN THE CHINESE MULTINATIONAL CORPORATES

Here lies the answer. China, forgetting that it is a Communist country, tried to overeat more than what it can chew, swallow, and digest. China, in the name of foreign investments, indiscriminately invited speculators, tax evaders in their own countries, exploiters of working class, sweat shop owners. Chinese political bosses, bureaucrats,party leaders tried to make their own fortunes ignoring the needs of the working class, and throwing to winds the basic principles of Marxism. Just as the European colonialists taught Chinese people to get addicted to opium, the new Chinese Political Bosses, in connivance with the Euro-American Investors, tried to make Chinese People to learn the consumption manners and ways of the Yankee World.

Who exploited whom?

By inviting Euro-American-ANZ Multinational Capitalists, and making them to buy Chinese Company shares at high pricesthe Chinese Political bosses, bureaucrats, business tycoons, might have thought that they (Chinese Barons) have become billionnaires through their CLEVERNESS, INTELLECT, AND INTELLIGENCE, which would not have otherwise been possible in a Truly Communist Society. But, are the Euro-American-ANZ Multinational Capitalists fools? Either way is possible. Some Chinese Barons may be great decision-makers and some others of their ilk may be fools. In the same manner, some Euro-American-ANZ Multinational Capitalists, with all their Computer Algorithms, may be equally great decision-makers and some others of their ilk may be fools. In other words, exploitation might have taken in both the ways.

But who were, who are, who will be real sufferers?

Ans: Chinese Working Class, both rural and urban.

WHAT ARE THE OWNERSHIP PATTERNS OF THE CHINESE MULTINATIONAL CORPORATES?

The Presidents, Prime Ministers, and the Opposition Leaders, Voters and general public, Media of the traditional Capitalist and Colonial countries i.e. U.S.A., Canada, Europe, ANZ, want their Corporates and Investment Firms to repatriate back their Investments from China, produce goods locally, pay taxes locally.

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