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Topic: The Future Crypto Market & China Printing Money - page 3. (Read 613 times)

hero member
Activity: 924
Merit: 520
Well in another post I was wondering how China seems to be in some cases so anti bitcoin but they are usually the top mining pools in the world. What do you make out of that?
That's the difference between the government and its citizens.  It's not China's government that's mining bitcoin; it's the people.

China having an anti-Bitcoin stance is all about preserving the status quo especially when their Government are somewhat threatened by this emerging technology since the ruling party wants to hold on to their power as long as they can. Imho.
member
Activity: 1134
Merit: 10
Right but you know how "Big Red" likes to do it. The people work for the greater good of the commune, or something like that.
legendary
Activity: 3332
Merit: 6809
Cashback 15%
I haven't been watching the stock market for a while now and wasn't aware the Dow had dropped 500 points--but in terms of percentage, I don't think that's a whole lot.  Nor do I think this media-hyped corona virus is responsible for that or whatever it is China is doing with the money printing.  How many of these viral outbreaks have we seen make the news?  They all have turned out to be much less deadly than the media would have you believe, and I'm pretty sure this current virus isn't wrecking the global economy--or even affecting it to an appreciable extent.

Well in another post I was wondering how China seems to be in some cases so anti bitcoin but they are usually the top mining pools in the world. What do you make out of that?
That's the difference between the government and its citizens.  It's not China's government that's mining bitcoin; it's the people.

member
Activity: 1134
Merit: 10
Well in another post I was wondering how China seems to be in some cases so anti bitcoin but they are usually the top mining pools in the world. What do you make out of that?
full member
Activity: 854
Merit: 115
In my opinion, China is regrettably the wall that prevents Bitcoin from advancing and even the other crypto due to there is connection between BTC and most of them. And OP there is no evidence for the printing of money in China, the media is full of fake and trival  information to be honest, stop believing them otherwise  they will probably affect you negatively. Fortunately, despite all of these issues Bitcoin is still moving but in a silent way.
member
Activity: 1134
Merit: 10
Do you all think that the Corona Virus has spread more than what they tell us in the news?
sr. member
Activity: 1050
Merit: 377
How could you just prove that china is printing 1.2 Trillion Yuan with just a 3 line post with no evidence? Each country has their own reserve bank which has the ability to print the currency notes but the process is quite lengthy. There needs a lot of permissions in order to start printing currency notes but in case of china, china is already facing rough times due to the corona virus.

Nearly 500 people are already dead due to the corona virus whereas 500+ are yet infected and struggling to recover from the most fetal virus. There might be a need to stop this infection so that not much people come under their threat and hence china might be needed some huge funds in order to stop the contamination by spreading some antidote through the medium or air, water or food.

I agree with you. In any case, China will take any measures to stop this crisis; otherwise, China may receive enormous damage on all fronts, from the economic level to a decrease in the level of power in the country. If China can print 1.2 trillion yuan, then it will. In addition, we do not know all the information; only official data is provided to us. Perhaps the situation in China is much worse than it is shown in official media.
legendary
Activity: 1134
Merit: 1597
Using cash will only spread virus. For Chinese is now much better to use Bitcoin and keep your wallet cash viruses free.
I know banknotes are usually full of germs and microbes, but do you really think they contribute that much to the spreading of the virus? By using Bitcoin they'd still pay for physical stuff, so whatever you do you still end up with something physically existing in your hands in exchange for physical/digital money.

snip

Nearly 500 people are already dead due to the corona virus whereas 500+ are yet infected and struggling to recover from the most fetal virus.

snip

It's not the most fatal virus. At least not yet. We've seen pandemics worse than corona and this one is so hyped..

So how is "injecting" money into their own economy going to help fight corona virus? Printing money to help fight corona virus also makes no sense at all. How come you are saying printing money is going to have short term negative effect? If this keeps on going on, it is going to affect Chinas economy very badly in the long run. Look at those countries that have printed insane amount of money. See how messed up their economy is.
Haven't heard anywhere that goods from China are being rejected.

Packages sent to Romania have been suspended a day ago due to the virus. I'm talking about the Romanian Post, not sure what about the other logistic companies.

Their economy is already very badly affected.. and will most likely take a pretty long route to recover from what happened. Injecting more money is a way they tried to help with the situation in Wuhan and all the other quarantined areas. It affects their economy on both the short and long terms.
copper member
Activity: 2968
Merit: 574
www.Crypto.Games: Multiple coins, multiple games
I believe that China has been 'injecting' money into its own economy for its efforts to fight the virus and whatnot, though that doesn't necessarily mean that they are not printing money on the side. While it may have short-term negative effects on their own economy, knowing how China's capability to outgrow any demands on its products, they can keep up. Then again, at the current state of things, countries are rejecting goods from China on the fear that it might have taken some of the virus on its journey. Even though the virus can only last long for 12 hours max without a host, other countries are still trying to get extra cautious and not risk anything.

The virus may have impaired some of the manufacturing industries that rely on China but as soon as the virus is controlled and quarantined, the economy would surely keep up and be stable once more.
So how is "injecting" money into their own economy going to help fight corona virus? Printing money to help fight corona virus also makes no sense at all. How come you are saying printing money is going to have short term negative effect? If this keeps on going on, it is going to affect Chinas economy very badly in the long run. Look at those countries that have printed insane amount of money. See how messed up their economy is.
Haven't heard anywhere that goods from China are being rejected.
member
Activity: 1134
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Completely off initial subject but given all the countries in the world which is the most financially sound and in order?
legendary
Activity: 3500
Merit: 1162
www.Crypto.Games: Multiple coins, multiple games
What makes no sense is the fact that China could print as much money as they want but as long as they can't manufacture and sell stuff all around the world and mainly to Japan and USA, they will not survive this.

Of course, corona will not continue forever and eventually it will all blow over and companies will continue to work with China in the near future, however up until that moment if the big ones start to move their operations in somewhere else, it will literally be the end of Chinese power that they have worked so far.

Do not forget that China is not the only country where USA or Japan or any other nation can just build factories and have cheap labor, there are tons of Asian and even African countries that will offer cheap labor just like China and when one companies switches to those nations, they are not coming back.
legendary
Activity: 2730
Merit: 1288
Seemingly this Corona Virus has put the Free World and its associated markets into shambles. Now seemingly China "panic printing" money in the nice sum of 1.2 Trillion Yuan.

Using cash will only spread virus. For Chinese is now much better to use Bitcoin and keep your wallet cash viruses free.
full member
Activity: 1162
Merit: 168
How could you just prove that china is printing 1.2 Trillion Yuan with just a 3 line post with no evidence? Each country has their own reserve bank which has the ability to print the currency notes but the process is quite lengthy. There needs a lot of permissions in order to start printing currency notes but in case of china, china is already facing rough times due to the corona virus.

Nearly 500 people are already dead due to the corona virus whereas 500+ are yet infected and struggling to recover from the most fetal virus. There might be a need to stop this infection so that not much people come under their threat and hence china might be needed some huge funds in order to stop the contamination by spreading some antidote through the medium or air, water or food.
legendary
Activity: 3542
Merit: 1352
Cashback 15%
I believe that China has been 'injecting' money into its own economy for its efforts to fight the virus and whatnot, though that doesn't necessarily mean that they are not printing money on the side. While it may have short-term negative effects on their own economy, knowing how China's capability to outgrow any demands on its products, they can keep up. Then again, at the current state of things, countries are rejecting goods from China on the fear that it might have taken some of the virus on its journey. Even though the virus can only last long for 12 hours max without a host, other countries are still trying to get extra cautious and not risk anything.

The virus may have impaired some of the manufacturing industries that rely on China but as soon as the virus is controlled and quarantined, the economy would surely keep up and be stable once more.
sr. member
Activity: 1638
Merit: 278
@crwth thanks for the links.

Yes, they ease their monetary policy as a precautionary step to overcome a decline in demand (and productivity) as well. I'm afraid that this virus seems more severe than the initial thought. However, this virus hasn't been declared an epidemic as far as I know, and let's hope it won't.

Scientists say it will become pandemic soon though Sad
https://www.businessinsider.nl/wuhan-coronavirus-pandemic-what-that-means-epidemic-difference-2020-2?international=true&r=US
China is only about to print the number of yuan they would actually need to stop contamination of the virus. So far, only china is greatly affected by the corona virus but yet there are few other countries which also are showing persons infected with corona virus. This might show us how fastly corona virus can spread and in no time, it could even spread globally making huge loss of human resources.

There should be some medium to stop this from happening as even there is no actual medicine available for this virus to stop from spreading which makes it more harmful that ever. China is the country responsible for the outcome of this virus and perhaps they should solve this on their own.
legendary
Activity: 1806
Merit: 1521
The People's Bank of China is responsible for this $173.81 Billion, and it is said that it is injected, but not printed [1]. Does it automatically connote to the part where they print money with that? I don't think so. It's with reverse bond repurchase agreements.

It basically does mean they are printing money. The reverse repo operations temporarily create money out of thin air, much like the Fed engaging in QE. Injecting 1.2 trillion yuan of cash into commercial banks only requires moving some numbers on a balance sheet. The central bank also instituted rate cuts, which is essentially another form of money printing: https://www.scmp.com/economy/china-economy/article/3048676/chinas-rate-cuts-response-coronavirus-too-marginal-help

If shit hits the fan and commercial banks start collapsing anyway, the securities underlying those reverse repo operations won't be bought back. It's all a big mirage. Everybody is just hoping that everyone else retains faith in the system.

They did this because of the current situation in China, which is the Corona Virus; they need a short-term raise in the capital for their country to possibly fight against this situation. [2] This is not panic printing but liquidating to have more room for research to fight this disease.

It's not about fighting the disease. The PBOC is doing the same thing the Fed was doing in 2008 in order to prevent a banking liquidity crisis where banks stop lending to each other and other businesses. If that were to happen, the entire economy could grind to a halt and basically collapse.
hero member
Activity: 1834
Merit: 759
Do you have a credible link to prove that China is printing money? because I am sure they are not doing any such misconducts. If they print money according to their own wish, they wouldn't go out to the world and distribute loans to the needy nations like Pakistan, Sri Lanka and Maldives among others. Printing money as per their own wish, will lead their economy in the same line as Venezuela or Zimbabwe. I am sure China will not take any such steps especially when they are aiming to become the strongest country in the world. So check your facts first!

It has been cleared up above that they're not printing money in this case, but it's inaccurate to say they're not printing money:

In a healthy economy, the economy itself grows faster than the money supply. In an economy being pumped up by financial and monetary stimulus, money supply tends to outgrow the economy. It is not a good thing. When the supply of money grows faster than the supply of goods and services in the economy, inflation and/or cross currency devaluation typically loom on the horizon. China’s economy has been pumped with unprecedented amounts of fiscal and monetary stimulus for a decade. In fact, it has created nearly $14 trillion more currency than the US in the last decade while growing its economy only $2.3 trillion more.

As for the virus' impact, at least on China's economy:

Financial regulators in the country have said they believe the impact on China's already slowing economy will be "short term".

One more thing to note is that people are scrambling to find a vaccine, and that one is even ready for testing. It's easy to get lost in all the negativity, but with people starting to be aware (how to protect against it, what it really does, etc.), fewer people are going to be infected, and the outbreak is going to slow down. It's hard to believe that it's going to go on completely unchecked, and that's basically the only way it can have long-lasting impact to the economy.
copper member
Activity: 2324
Merit: 2142
Slots Enthusiast & Expert
@crwth thanks for the links.

Yes, they ease their monetary policy as a precautionary step to overcome a decline in demand (and productivity) as well. I'm afraid that this virus seems more severe than the initial thought. However, this virus hasn't been declared an epidemic as far as I know, and let's hope it won't.

Scientists say it will become pandemic soon though Sad
https://www.businessinsider.nl/wuhan-coronavirus-pandemic-what-that-means-epidemic-difference-2020-2?international=true&r=US
copper member
Activity: 2786
Merit: 1256
Try Gunbot for a month go to -> https://gunbot.ph
The People's Bank of China is responsible for this $173.81 Billion, and it is said that it is injected, but not printed [1]. Does it automatically connote to the part where they print money with that? I don't think so. It's with reverse bond repurchase agreements. They did this because of the current situation in China, which is the Corona Virus; they need a short-term raise in the capital for their country to possibly fight against this situation. [2] This is not panic printing but liquidating to have more room for research to fight this disease.



[1] - https://www.reuters.com/article/us-china-markets-rates/china-central-bank-unexpectedly-cuts-reverse-repo-rates-to-help-economy-as-virus-spreads-idUSKBN1ZX05X
[2] - https://www.investopedia.com/terms/r/reverserepurchaseagreement.asp
hero member
Activity: 2842
Merit: 772
Seemingly this Corona Virus has put the Free World and its associated markets into shambles. From Dropping the Dow Jones over 500 points on Friday to now seemingly China "panic printing" money in the nice sum of 1.2 Trillion Yuan. Needless to say the real questions lie in "What Next"? "What's really going on"? "How will this effect everything"? "Are we in trouble"? As usual any thoughts and comments are more than welcome.

I think you are talking about China pumping their market by printing $170++ millions because of the said health crisis. Well in an economic standpoint of view of any governments around the world, printing money is the best choice, right now.

Are we in trouble because of this? We really don't know, US-China trade war has somewhat impacted the economies of this two nations that trickles world wide. But with the current epidemic like this and reports surfacing that other countries are already affected, might be. But as far as crypto goes, there could be some positive impact as they say, as bitcoin could be used a leverage in this kind of situation.
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