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Author Topic: Ufo propu engine, closed loop  (Read 472147 times)

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #900 on: February 23, 2017, 06:17:18 PM »

Question 7: You are claiming that the Hedge Funds are ganging up to devalue the RMB and make huge profits. You have disclosed how a retail FOREX trader can turn 200K to 5m in six months. Are the Hedge Funds using the same strategy?


The turning 200K to 5m example is to show theoretically - how huge profits could be made even by the calculating retail Forex traders taking advantage of the attack on RMB by the Hedge Funds.. The Hedge Funds can use much safer strategies. They can even be brokers or partner with brokers to lower the transaction costs. They do not need to worry about any sudden event that might cause a "margin closeout".  They do not need to play the game of turning 200K to 5m. They will be quite happy to turn 200K to 400K in six months for now. When China runs out of Reserve, they will go for the kill. They will make billions and destroy the Chinese economy at the same time. (They are the foot soldiers in the Economic War.)


Just look back at the collapse of USSR and the Asia Financial Crisis.

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #901 on: February 23, 2017, 11:34:24 PM »

 Question 8: Can you describe the action from the point of the Hedge Funds (or crocodiles)?

The Hedge Funds will Open buy Orders for the USD/CNH pair betting the value to go up (RMB devalue). The Central Bank of China or its agents will do the corresponding sell order. The Hedge Funds will Open more buy orders until the Central Bank of China slows or skips some corresponding sell orders. That will force the USD/CNH pair value to go up somewhat.

The Hedge Funds can wait – even overnight as they are winning bets. The Bank of China will have to close their losing bets daily to avoid the additional loss in premium. That means the Bank of China is helping the Hedge Funds to win!

The number of trades and the amount involved are much higher than those from the combined retail Forex traders. The calculating retail Forex traders should always bet on the side of the Hedge Funds. (Bet with the winner.)

The Bank of China and its agents have zero winning chance in this “currency or economic” war. This war will drain the hard earned Reserve. Like one news reporter said: “It is like pouring sand to try to fill the sea. There is just not enough sand to do so.”  When will China ever learn?

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #902 on: February 24, 2017, 12:10:14 AM »
 Question 9: Do you think the crocodiles will pause and digest rather than attack constantly?


Yes. Some Central Bank of China Officials may be lured to say that there were never any threats. It was just normal market fluctuations. The top Chinese Economists should play the what-if scenarios with their computers.

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #903 on: February 24, 2017, 01:10:31 AM »

Question 10: Will China be able to achieve the goal of having RMB as the Settlement and Reserve Currency under the current situation?


Will any Nation be stupid enough to hold a depreciating currency as Settlement and Reserve Currency?


If the RMB were rigidly pegged to the Dollar and occasionally China appreciates the RMB, that will be a different story. If the interest rate in Chinese is higher than that in USA, it will be even more tempting to hold RMB.


Who advised China to let "market force" determine the exchange rate? The crocodiles?

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #904 on: February 24, 2017, 07:19:36 AM »
 Question 11: What will happen if China has its own Forex Exchange within China? All bets are placed with this Chinese Forex Exchange. The gain and loss are effectively under the control of the Chinese Government. In addition, the Chinese Government can theoretically produce infinite amount of thin-air money to do the trading.


The bets are actually propagated to the International Forex Exchanges. In such a setup, the Chinese Foreign Currency Reserve will never be drained. All it involves is printing more thin-air RMB. The daily Forex Transactions may exceed 10 trillion or more. China will have a “Place” for its citizens to “invest” the extra thin-air money. The Market Forces are no long the crocodiles. They are the almighty dragons!

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #905 on: February 24, 2017, 07:20:33 PM »
Question 12: What will happen if China uses one of the "not officially recognized" Chinese Brokers within China to do the trade?


Make sure that Broker can act as Market Maker for the USD/CHN trade. Use one that can be totally "controlled" in Hong Kong or Macau is acceptable. Best is to use one within China.

Trading through such a broker with the result of the trade reflected on the International Forex computer systems can guarantee that China will beat the Hedge Funds. No Foreign Currency Reserve will ever be used. The trading can be done with thin-air created RMB. China can theoretically create infinite amount of RMB and no gang of Hedge Funds has a chance to beat China.

Do not stupidly trade via the foreign Forex Exchanges. (Is China trading through the London Forex and giving away billions?)

This can be achieved quietly without any loss of face or announcement of changes in policy. It can be done on Monday when the Forex Market in China opens...

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #906 on: February 24, 2017, 07:30:18 PM »

Question 12: What will happen if China uses one of the "not officially recognized" Chinese Brokers within China to do the trade?


Make sure that Broker can act as Market Maker for the USD/CHN trade. Use one that can be totally "controlled" in Hong Kong or Macau is acceptable. Best is to use one within China.

Trading through such a broker with the result of the trade reflected on the International Forex computer systems can guarantee that China will beat the Hedge Funds. No Foreign Currency Reserve will ever be used. The trading can be done with thin-air created RMB. China can theoretically create infinite amount of RMB and no gang of Hedge Funds has a chance to beat China.

Do not stupidly trade via the foreign Forex Exchanges. (Is China trading through the London Forex and giving away billions?)

This can be achieved quietly without any loss of face or announcement of changes in policy. It can be done on Monday when the Forex Market in China opens...


The above was actually discussed at Z.com in Hong Kong. Their Experienced Forex Manager "agreed" with the analysis. Z.com stopped USD/CNH pair trading some years back. But the logic is clear to the ones in the trade... When will China ever learn?

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #907 on: February 25, 2017, 07:40:21 PM »
 Question 13: If China plays with its own FOREX Exchanges, does that really mean that it can reflect or manipulate or control the exchange rate? Can China then regulate and expand its FOREX Industry?
 
 
Yes. It was like the gaming industry. Macau became the crown jewel of the gaming world. International investment poured in to take advantage of the opportunities of winning RMB from the Chinese Citizens. In that process, Macau became wealthy. Macau can help the surrounding regions to become wealthy especially after completion of the Zhuhai-Hong Kong-Macau Bridge. That is expected to open to traffic at the end of 2017.
 
It will be a case similar to the State Enterprises. Dad and Mom shops will never be able to compete with Multi-Nationals. But properly run State Enterprises can easily beat the Multi-Nationals with the deep pocket and resources from the Government.
 
Regulated, large scale, well financed Forex Exchanges will emerge from China. These Forex Exchanges, both Chinese funded and Foreign funded, are likely to dwarf any existing Forex Exchanges. The drawbacks of shady Forex operators will be overcome. China may demand all Forex Exchanges to have a physical presence (forcing significant investment in property, equipment, management) and the creation of thousands of jobs. China will weigh the advantages of imposing taxation or imposing a transaction fee (or adding 1 PIP to the spread as tax to the Government).
 
It is likely to be a very Meaningful Economic Activity. Many investors will find an alternative to investing in stocks or property. The investing into derivatives (or pure numbers game) must happen sooner or later as the amount of thin-air created RMB reaches a certain level. (USA learned that long ago.)

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #908 on: February 25, 2017, 08:08:35 PM »
 Question 14: There is a rumor spreading in Hong Kong. The two persons responsible in defeating the Hedge Funds (Soros at al) are both in jail. It is a plot by the West to prevent them from “fighting and winning” again. Do you think that this is true?
 
Anyone can spread rumors. The crocodiles spread rumors that RMB will depreciate. Some news media spread rumors that trade war between China and USA is inevitable. Anyone can think of something to write (or to excite) to raise eyebrows. These persons will attract attention (President Trump is a typical case.)
 
In my humble opinion, Hong Kong is very stupid to imprison its two top financial brains who had actual experience in fighting the Economic War. Chinese history had many cases of “getting the emperors to persecute their best Officials”.

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #909 on: February 26, 2017, 08:02:14 PM »
 Question 15: If China allows regulated Forex Trading and other derivative trading in China, does it mean that China would have solved the problem of allowing an outlet for the thin-air RMB? There is no need to speculate on the property and stock markets? Chinese Citizens will all have improving standards of housing, food, education etc.?
 
USA and the West also allow the use of BONDS to absorb their thin-air currencies. Many of these bonds are issued by private banks with no real means of income. They promised the buyers of these bonds a higher interest rate than bank deposits. Some of the thin-air currency is then effectively taken out of immediate circulation. There will be less thin-air currency to be used for speculation. The USA and other Western Governments use their QE policies to buy such bonds to pop up the private banks.
 
China should use the extra thin-air money to help all its citizens to become rich and to help other Nations rich. Building infrastructures within China to create more jobs and better travelling is generally accepted. But building infrastructures in Africa and other less developed Nations is still a “mental obstacle”. Some less far-sighted politicians still view that as “pouring money down the ocean”. The far-sighted politicians should see such actions as – to get rich and remain rich, one should help others rich. Influence will not be via Military Force or Economic Cunning. Disintegrating USSR (or China) or destroying other “Miracle Nations” will not buy long lasting peace. Making them rich so that all can enjoy the prosperity will.
 
Knowledge has the characteristics of – you have more when you give more away. Thin-air money may now acquire the same characteristics with the right mind-set and management.

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #910 on: February 26, 2017, 08:13:55 PM »
 Question 16: Are you claiming that your solutions can prevent the Hedge Funds from draining the Reserve of China? Do you really think that you are better than all the Brain Trusts at Harvard, MIT, Cambridge, etc.?
 
Knowledge has the characteristics of – give it away and you get more. I am giving away what I know and I am sure that I am getting more. The Brain Trusts of the West have to “keep their knowledge secret” for political reasons. I and many others like me have an immense advantage over these Brain Trusts…

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #911 on: February 26, 2017, 11:15:51 PM »

 Question 17: What will happen to the USD/CNH pair prices if China does take the actions you recommend?

If China were to trade through “a controlled” Forex exchange or broker within China, there will be many trades around 6.85. There will be no more drain on the Reserve. The to be published figure on March 7 should reflect that. The Hedge Funds will soon realize that their efforts will no longer be effective. They will get the News Media to call China a currency manipulator.

If the long term prospect is an exchange rate of around 6.85, the betting strategy will have to change. There will not be any “sure win” any more.  Too bad.  But China is saved…

The winning strategy may be to open Forex Exchanges in China or buy the stock of the Companies that will do so… ;) ;)

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #912 on: February 27, 2017, 04:16:47 PM »
 Question 18: Are you saying that the strategy used to disintegrate USSR; devalue the British Pound and destroy the Asian Miracle in 1997 is now useless with your stupid proposal? China has lost one quarter of its Reserve. Many Chinese are changing their RMB to USD. The Forex Brokers in London are enjoying their new found wealth. Do you really think that you can succeed when all those better than you failed?
 
The New China is no longer “governed” by a few uninformed leaders any more. The Internet allowed anyone with ideas to be shared. This particular thread has over 120,000 hits. Some of them are from Chinese Nationals who has ways to pass on the information to higher authorities. The Leaders of the Chinese Communist Party listen to logic and they can reason independently. (Elites in Hong Kong still believe in Market Forces and imprisoned their two top financial brains who had real experience in fighting the crocodiles.)

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #913 on: February 28, 2017, 11:39:19 PM »

Question 17: What will happen to the USD/CNH pair prices if China does take the actions you recommend?

If China were to trade through “a controlled” Forex exchange or broker within China, there will be many trades around 6.85. There will be no more drain on the Reserve. The to be published figure on March 7 should reflect that. The Hedge Funds will soon realize that their efforts will no longer be effective. They will get the News Media to call China a currency manipulator.

If the long term prospect is an exchange rate of around 6.85, the betting strategy will have to change. There will not be any “sure win” any more.  Too bad.  But China is saved…

The winning strategy may be to open Forex Exchanges in China or buy the stock of the Companies that will do so… ;) ;)


If every Nation trades through its own Forex Exchange, does that mean the "atomic weapon" of the Economic War is no longer effective? USSR might not have disintegrated. The Asian Financial Crisis might not have happened? China can spend its reserve on useful goods and services - no longer handing it to the crocodiles?


I think that the proposal to have two camps competing to bring up the economy of poor nation is much better than the present Economic Wars...

ltseung888

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Re: Ufo propu engine, closed loop
« Reply #914 on: March 03, 2017, 11:00:12 PM »

 Question 19: This question was raised by a Banker. He asked: “What is likely to happen to the RMB exchange rate if China stops buying RMB (or the USD/CNH pair) for a few days in the Forex Exchanges?”
 
Many of us paused to think. Friend A yelled: “The USD/CNH pair value will shoot past 7.0 and may even go beyond. It will spell financial chaos internationally. China will not allow that.”

Friend B said: “Why not? USA is accusing China as the Currency Manipulator that artificially lowers the value of the RMB to gain export advantage. The rapid depreciation of the RMB (increase in value of USD/CNH) in a couple of days will show the World that this is not the case. The Manipulators are the USA Hedge Funds or Crocodiles.”

Friend C said: “In order for China to drastically change its currency strategy, it needs to show the World a very good reason. The rapid increase in the USD/CNH rate for no economic reason will provide a good story.”

Friend A: “Is that worthwhile? Financial Chaos for a few days will cause China to lose face.”

Friend B: “On the contrary, it shows that China understands the stupid rules set by the West. It shows that China will not play according to such rules. Defining a new set of rules is of paramount importance.”

Friend C: “The new rules may be as drastic as the Malaysian Ringgit in 1998. It may be back to rigidly pegging to the USD with periodic appreciation. It may be playing the Forex Exchange game via a Chinese Exchange within China. It may be some rules not discussed previously. China just cannot play according to the present rules and see the draining of its Foreign Currency Reserve; followed by a collapse of the currency and disintegration of the Nation.”

Tseung: “When you mention the disintegration of the Nation, the decision makers in China will take note. They have seen the disintegration of USSR.”

Friend A: “I just do not believe China will allow a sudden change in the RMB Exchange rate. Let us see.”