The Renminbi will be a serious competitor for the US Dollar

The free trade area of the renminbi is for Marc Faber only a matter of time . In an interview , the investor explains what consequences this may have for the world economy – and why he does not particularly like Chinese stocks .

Summarily translated from German :

http://www.fondsprofessionell.at/news/markt-strategie/nid/faber-renminbi-wird-ernst-zu-nehmender-konkurrent-fuer-den-dollar/gid/1011933/ref/4/

It is a project that takes on all industries and sectors of the global economy influence : The Chinese government wants to rehearse the free trade of the yuan in the just recently founded Special Economic Zone in Shanghai. Marc Faber this step is only logical that the renminbi is traded freely , for it is inevitable anyway . “China is testing so happy in miniature. , The government looks exactly which benefits Hong Kong with his free economy ,” the investor said in a recent interview with the Business Week .

Government is communist , ultra- capitalist economy
Once the Renminbi is freely convertible, he become a serious competitor to the U.S. dollar , said Faber . Already, China is in many important sectors of the global economy than the U.S.. Faber, who lives in Thailand and Hong Kong for more than 30 years of watching the rise of China . The economy holds the investor now for ultra -capitalist, but the government still for communist, he said the economy week .

Faber: “I do not especially Chinese companies “
How you can benefit from it , do not know Faber . However, much depends on whether the renminbi remains strong, or whether China moves into a currency war with Japan. Faber personally do not particularly Chinese companies , as he betrayed . The good companies are already expensive, and the poor are so poor that he did not have . “Who wants to take advantage of China, the best buys shares from Hong Kong. Moreover, shares of casinos in Macau are interesting,” said Faber . Although it was not unriskant , but if you are bearish, could be worth that , according to him .

Statistics fake? Growth of more than four percent
And there’s a reason why Faber Chinese companies prefer to avoid – even though he is of the opinion that they are even superior to their Western competitors : He does not believe the current statistics. The current growth estimates Faber on top four percent – about three percentage points lower than specified by the authorities. ” In recent years, China has extremely extended the loan amount . Growth with much money you can always blow up ,” says Faber . “This puts tremendous growth . ” ( dw )

….more from Marc:

Artificially Low Interest Rates causes Excessive Debts