Topic: Devaluation of Chinese Yuan - page 4. (Read 6884 times)

Then the eventually of yours slowly but surely turns into the never of mine. There can be only one...

And that is the US dollar!

Governments in the state of a major money fuck-up (of any kind) are known to restrict the free flow of foreign currencies and precious metals, up to direct prohibition under the threat of criminal prosecution...

Let's recall the notorious US Gold Reserve Act of 1933

Those within the devalued currency regimes may see value in gold or other private assets. More likely they buy dollars though (if they can).

China is done. They say don't sell shares! Then they arrest the sellers. Control the worlds peoples' free market real democracy with guns. Fucking noobs.

Here is an idea: China stock and housing crash. They can not afford to buy a single blue barrel of oil, nor an imperial ton of iron ore. What then? Money printing! Always smart. But their "peoples money" will not buy anything abroad. Then what? Use their stash of dollars. Sorry treasuries. Then what? Interest rate hike in treasuries. Yellens dream. Then what? Credit contraction....

This impacts crypto-currency in at least two ways:

• Those within the devalued currency regimes may see value in gold or other private assets. More likely they buy dollars though (if they can).
• This is the global economic collapse into totalitarianism as Western government try to squeeze blood from every turnip. Thus driving money and commerce into free trade zones of anonymity and decentralization (if those technologies are sufficiently easy and mature).

Getting back to the OP, sorry, but I think this is mostly a non-event for bitcoin.  The yuan has risen far more over the last few years and so this devaluation is just taking a little of this back.  Plus it is designed to help the Chinese economy and so I don't see it really starting a panic.

After all, if people in Venezeula who have seen their currency become utter worthless against the dollar have not rushed to bitcoin, I don't think the Chinese will.  Now if it would just slow down their miners dumping bitcoin onto the market.....

Getting back to the OP, sorry, but I think this is mostly a non-event for bitcoin.  The yuan has risen far more over the last few years and so this devaluation is just taking a little of this back.  Plus it is designed to help the Chinese economy and so I don't see it really starting a panic.

After all, if people in Venezeula who have seen their currency become utter worthless against the dollar have not rushed to bitcoin, I don't think the Chinese will.  Now if it would just slow down their miners dumping bitcoin onto the market.....

But knowledge creation is not the same as non-supervisory compensation, right?

Because knowledge creation is where all the value is added. The manufacturing is headed towards a zero margin economy.

You should understand what this productivity is made of. If we substitute one group of machines with more productive ones, why should the increase in productivity be reflected in the increase in wages?

This chart is so sad. What happen in the past that now we have so low compensation for increased productivity? World supposed to be evolving, not devolving.
Exactly this problem is touching every major economy. And China is trying to keep it that way.

This chart is so sad. What happen in the past that now we have so low compensation for increased productivity? World supposed to be evolving, not devolving.
Exactly this problem is touching every major economy. And China is trying to keep it that way.

I love you because I am formerly AnonyMint and since 2013 my goal has been to add more anonymity to cryptoland. Thanks for validating my thesis about a coming glorious, anonymous Knowledge Age.

What I see people essentially saying in this thread is that Bitcoin is autonomous. They can get access to it, spend as anonymously as they take the care to obscure their IP address, and use it without any permission or without obtaining any account with some authority. In short, permission-less commerce (do what you like, no big brother with his dick up your ass!). Most of the terms above fall under the "autonomy" umbrella taxonomy.

In my case, I don't have a utility bill matching my current address because I rent. And so I can't comply with the asinine Patriot Act KYC identification requirements that exchanges and financial institutions impose. So no worries, I just go place a buy order on localbitcoins, then go deposit some cash in a local bank and I get the BTC released an hour or so later.

Later as the bankrupted Western governments start to limit more how much money you can get out per day from your ATM account (e.g. Greece is an example of what is coming to every Western nation because they are all broke), then if you are holding crypto-currency you can sidestep these restrictions.

However, do note that Bitcoin is not reliably anonymous (unless you are for example connecting via a unregistered, public WiFi connection) as your IP address can be traced back to your identity (and Tor and I2P don't really stop the national security agencies from tracking your identity on the block chain) and so the authorities will one day in the future be clawing back against you prosecuting you for violating their regulations by using Bitcoin.

This is why I (formerly username AnonyMint since 2013) support the development of altcoins with more robust built in anonymity. Many users will not appreciate the need for this until later when so many Bitcoin users are being busted for past activity all stored on the block chain.

So that is the reason that you (deisik) hold no coins, only dollars in your home. Wait, that is risky, not home, but in a deposit box. Wait, that is costly, and pays no interest to mitigate the devaluation, a bank deposit. But wait, the interest rate is zero, it must be in treasuries. But wait, those also pays almost nothing, it will have to be corporate bonds and corporate equity. I say good luck with that.

It is like going on a long trip and having a two year old in the back seat. When will we be there? You could say soon, but that would not take into account a two year olds concept of time. You could say in a long time, just don't think about it. Or you could just say never. Use the words of a famous politican: Some time in the distant future. Then, suddenly, we arrive.

Yes, the US$ is indeed still alive.  My guess would be that a short-term deflation is close to or now at hand.  If so, the US$ is a safe place for your money.  "Subject to a sudden change."

And the dollar will (likely) eventually collapse...  Why?  ALL other fiats have collapsed in the past.  Mostly due to the same causes: government overspending and money printing.