Donald DumbFuck

[Abba]

@Delus

Haha take it this way.

If dollar increases against ksh for example ikuwe 110shs. Exporters who convert kshs into dollars to import will be forced to pay more meaning imports will be expensive. On the other hand, exporters will be very happy because watapataa more kitunguu in terms of kenya shillings. Now apply to China. By devaluing the yuan, they make their products more attractive to become cheaper for export meaning kitunguu inukee zaidi but wale wanataka kuimport in USD will have to fork out more yuan meaning watapigwa miti zaidi.

Ukitaka na kiluhya, sema tu pia:D:D

I get it now .are you a primary school teacher by any chance…:D:D

[Abba]

@gashwin

try to take it in slowly:D.

:D:D wacha ninyenyekee ni funzwe

[ndume]

To manufacture, China has to import raw materials and also petroleum products. Devaluing their currency will make this very expensive.

Those yapping here about devaluing a currency as a weapon are out of their depth.

[Polmos]

Napita tu.

[Wechez]

@Mr Jailer

Devaluation is where the Central Bank governor simply wakes up in the morning and declares…‘Kutoka leo 1$=110KES up from 1$=100KES.’
This has the effect of making stuff Kenyans sell abroad (i.e. Exports) cheaper. If a foreigner has $1million that person will move from having 100millionKES to 110millionKES overnight.
China are trying to nullify the effect of taxation on their products by the US govt by devaluing their currency (allowing Americans to buy more Chinese stuff with the same amount of US dollars).

cc @Mathaais @Abba

Hii ni below the belt.

[gashwin]

@Purple

75% of all Chinese goods are made for continental USA

this is a lie. maybe 20 p c only. just look at made in china in stores from berlin to bangalore; from where i sit i cannot remember one product made in USA in any of the supermarkets i shop in.

[Gerald_Achieng_Achie]

Trump is only fulfilling his campaign pledges. What he is doing is what got him elected. He dared asked some tough questions, that other politicians dare not ask.
For all I know, China does extremely well when American consumers are doing well.
So, let Trump deliver on his promises, the world is much at peace with Donald.

[Charley_Flani]

@Mr Jailer

Devaluation is where the Central Bank governor simply wakes up in the morning and declares…‘Kutoka leo 1$=110KES up from 1$=100KES.’
This has the effect of making stuff Kenyans sell abroad (i.e. Exports) cheaper. If a foreigner has $1million that person will move from having 100millionKES to 110millionKES overnight.
China are trying to nullify the effect of taxation on their products by the US govt by devaluing their currency (allowing Americans to buy more Chinese stuff with the same amount of US dollars).

cc @Mathaais @Abba

Spot on. A weakened currency makes exports cheaper for any export-led economy.

As @obienga said earlier, more than 6 trillion of US debt is held by non-US residents.

That’s nothing to scoff at.

And it’s not just the debt. US Dollar bills are basically international IOUs and if they all return home… it’s Weimar time for the USA.
https://i.kym-cdn.com/photos/images/original/000/947/960/cfe.jpg

The Americans are playing themselves.

[shocks]

@Simiyu22

Inflation. Primary effect of devaluation of a currency to a local economy. Def: A devaluation is a decline in the country’s standard of living. Traditionally, it is a tool used by a desperate government with a poor economic policy.

Trump still up 2:0

China needs a different approach.

In China its a bit different (command led economy), the government has a say on prices of basic commodities e.g food and rent, so a devaluation will not hurt the common mwananchi, only guys who consume imported products

[gashwin]

@Purple

China ni wezi wa intellectual property nothing else.

hii statement tuliona ni upussy zamani uliza @Swansea

[shocks]

@ndume

To manufacture, China has to import raw materials and also petroleum products. Devaluing their currency will make this very expensive.

Those yapping here about devaluing a currency as a weapon are out of their depth.

You are wrong, China has always kept the yuan below it’s true value, hi game haijaanza leo and that is what has aided it’s export led economic growth. Of course it has downsides, but it’s something they are pros at

[gashwin]

@Purple

Copy cat thieves selling cheap stuff, no thank you.

he he…they said if you want to kill a dog you give it a bad name…

[chriskiil]

@Purple

WE Kenyans should also be worried at the rate at which the Chinese are dumping their substandard junk in OUR country, thereby killing your manufacturing base.

I hate kenyanans who call other kenyans ‘kenyans’,ngitee!

[thesavage]

@shocks

In China its a bit different (command led economy), the government has a say on prices of basic commodities e.g food and rent, so a devaluation will not hurt the common mwananchi, only guys who consume imported products

“Free trade” is a tricky game. Governments can conspire in board rooms behind closed doors to fuck the Chinese. Si just a few years ago Kenyans walirauka asubuhi moja wakazima Chinese phones? The number of jobs at risk in Cina ni mob. Chinese hawawezi kujifanya arrogant. Kama vile @gashwin amesema, ukitaka kuua ngui unambandika jina mbaya. If Chinese play too hard, watapangwa.

[shocks]

@Abba

Layman : I’m to understand that usa owes china trillions of dollars in their reserves . What if china iseme ferk it , I need all my money back, will usa raise that cash?

It’s not as simple, China will have to look for someone to sell to those bonds, na ikiwa hawataki kuziuza kwa bei ya kutupa they cannot just dump the whole lot in the market.
Hii story ya China having its yuan at a lower value is what causes them to have so many billions dollars in surplus which have to be invested somewhere, in this case the safest place to pack dollars is in USA treasury bonds. So as long as China will have a trade surplus with USA, they will have to invest in those bonds

Another thing: china exports stuff all the world. So si ati usa pekee. So what if , what if china decides to stop trading na usa and they start deals with European Union , africa and other places like canada ?

USA is China’s biggest export market, vile @gashwin amesema around 20% of all their exports, so China cannot just say fuck that.

[Delus]

@Abba

I get it now .are you a primary school teacher by any chance…:D:D

Haha apana:D

[Simiyu22]

@shocks

In China its a bit different (command led economy), the government has a say on prices of basic commodities e.g food and rent, so a devaluation will not hurt the common mwananchi, only guys who consume imported products

Big focus on media drama, a lot of people dont realize that Donald Trump has a smart economic team, full of career economists and scholars. Every act on his part has been carefully considered. China’s has a $370 B surplus with the US that went largely untamed. Any kind of regulation only reduces the surplus and advantages the US.

[Okwonkwo]

@chriskiil

I hate kenyanans who call other kenyans ‘kenyans’,ngitee!

she’s american

[system]

@obienga

This is about to get exciting
[ATTACH=full]184937[/ATTACH]

Kama unaelewa mambo ya forex trading leta mawaidha tukule hii matunda ya vita ya wakubwa

[Abba]

@shocks

It’s not as simple, China will have to look for someone to sell to those bonds, na ikiwa hawataki kuziuza kwa bei ya kutupa they cannot just dump the whole lot in the market.
Hii story ya China having its yuan at a lower value is what causes them to have so many billions dollars in surplus which have to be invested somewhere, in this case the safest place to pack dollars is in USA treasury bonds. So as long as China will have a trade surplus with USA, they will have to invest in those bonds

USA is China’s biggest export market, vile @gashwin amesema around 20% of all their exports, so China cannot just say f**k that.

You are well informed brother thanks