[rrggrr]

RMB declining in open market against USD.

China issues much debt in USD and pays interest in USD. What should be 1 unit of debt is 6 or 7 units of debt because of currency differential & risk premium.

China purchases many imports in USD.

To keep RMB well under USD, China must sell USD and buy RMB in open market. This has happened for many years.

In sum, as long as China subsidizes domestic market the effect of all of this is not felt to most Chinese. However, this becomes very, very, very, very costly. Look at food prices in China as one example.

When there is a rebalance / reconciliation the RMB savings will be hurt.

China hopes to prevent this by gold purchase and Belt & Road growth.

Very difficult situation. Bad management of economy.

[theseadroid]

I'm more interested in what average Chinese experiences than the macro currency/debt figures. Yes food price has been going up. But salary has been going up in the past decades or so as well. I feel purchasing power has been flatlining now than before. Environment wise it's getting better actually. I agree with the growth of salary and food price, people's savings are destroyed. But other than that I wont use the word destroyed for other aspects. I personally think if it's not because of the economic achievement of the Chinese government, you wont see as much nationalism from there today.