The Leaders of 20G Summit

Presidents or premiers

 

Dear Sir/Madam,

 

      I learn that Your Excellency will be attending the G20 Summit this week in London, and how to cope with the financial tsunami of once-in-a-century to have a common view with a good recipe that will certainly draw the attention of the world and I hope that this document is truly worth your attention and may it be used as a reference.

 

      Before the commencement of G20 Summit meeting, the views of different national leaders have been circulating through media:

 

1.      The European leaders have suggested the need to re-form financial institution practices;

 

2.      Chinese central bank chairman Mr. Zhou Xiao Chuan has proposed the creation of an ultra sovereignty reserve currency to replace the existing United States Dollars for international trading.  The suggestion is well supported by Russia, India and Brazil.

 

3.      President Obama replied that investors are still optimistic about the United States’ economy and at present US Dollars is exceptionally strong and stable. Thus Obama dismissed the need to create an international reserve currency.  President Obama also emphasized that lowing medical healthcare cost can help to lower the national deficit.

 

4.      The United Kingdom’s Bank of England (BOE) Chairman Mr. Mervyn King was saying that, the bloating goal is necessary, and must realize the price stability.

 

5.      European Central Bank (ECB) vice-president Mr. Lucas Papademos express also than the  more conventions measures to carry out, the quantification-easing of monetary policy it may be a select of Central Bank, but it should be find out the difference of  quantification-easing between the relaxation of credit.

6.      ….
　

        Above is the subject of the 20-nation summit also perhaps not far from, the other leaders of Europe was to express must be to rectify the financial order and Brazilian President Lula was to express that 20-nation summit must be a result on 27/3/2009, otherwise, people would be hard to believe that the future 20-nation summit, therefore, leaders of 20-nation summit must know where is the disturbance of financial order, as follows the background case it was not to tolerate to overlook: 

 

a.    If you do not forgetful, you should remember that I wrote in May 8, 2008 and August 2 two letters in Hong Kong through the consulate in your country give you by fax, the two letters pointed out that the Chinese government intervened to interfere the exchange rate of yen since 2004year and the interfere-cost is the key to touch off the crisis of inferiority mortgage loan, the contents of the letters of the website can be link to:

 

www.ycec.sg/lzm/080508.htm or the main pages is www.ycec.sg/lzm.htm

 

b.    However, the foregoing case of Chinese government to interference yen since 2004year and my advise did not receive international attention.  Because of the sovereignty-fund of the Chinese government to assist the Hong Kong Monetary Authority to use the leveraged of big Margin trading to sell yen and buy currencies of other countries to force the yen revaluation, the Japanese government has failed to feel quite helpless and can only to see with one's eyes the yen revaluation to at the 90.88 on revaluation at once, the Chinese government's target at my Margin account all the Deposit at 91.14 yen was clearing up to!

 

c.    In virtue of the Renminbi (RMB) is a closed currency, so the Japanese government can not to retaliate, Japan’s dignity was to suffer a challenge!  Therefore, the yen exchange rate was control by Chinese government until the first ten-day period of February of 2009year, until the Japanese government announced that it would be stationed a helicopter ship at Diaoyu-Islands, by thus opposition, so Chinese government to give way to adjust the yen exchange rate between to 96-99.00 again to haggle over prices with Prime Minister Mr.Taro Aso. At this time, Japan announced export was to descend nearly half of 45.7% on the last third part of February of 2009, in the news, Prime Minister Taro Aso was to be enraged and hand tremors very critical, but the Japanese export industry was maximum sufferer just too.

 

I.     About how to rectify the banking order

 

Prime Minister Taro Aso will attend the 20-nation summit, the case will be confirmed. Chinese government interference the yen exchange rate it in the end how to impacting the economic order?

 

First of all, the tide of interest arbitrage in 2007 is a lure of the inferiority mortgage loan intensification, I believe that no one would object to such a definition. In Hong Kong, the inferiority mortgage loan by financial companies affected by the small, but in the U.S., banks involved in the transition to seed down for the crisis of the inferiority mortgage loan.  At this moment, when the Chinese government to intervene against the Japanese yen exchange rate it was to twist the market-law by July of 2007year (¥ 119.0), and after, the yen's appreciation again and again to raise the quota the inferiority mortgage loan of interest arbitrage, but also time and again to make the early phases of the mortgage loan to stop pay out the funds, so the crisis of tinferiority mortgage loan it was to lead to the bank’s bad account of the inferiority mortgage loan quick lift and to lead Obama to use ten thousand and hundred million U.S. dollars for purchase the bad account, Obama must to know this cause and effect.

 

Secondly, today's question-bank of financial tsunami is not entirely bad debt from mortgages, the 20-nation summit leaders also need to know the Chinese government to intervene against the Japanese yen exchange rate and twist the market-law of foreign exchange it brought more serious the consequences of what ?

 

In addition to the mortgage business, the Margin Deposit of scalp foreign exchange is a great business in banks for another.  In general, not to think that banks provide customers with Margin Deposit of scalp foreign exchange only for gain the price difference of commerce, under the past statistics, the customers of Margin Deposit of scalp foreign exchange account which 70-90% are losers, the bank's Margin Deposit trade department have some financial experts, but also in the capital when the solid to play a "market maker" role to earn even greater profits!   However, the Chinese government to intervene against the Japanese yen exchange rate of the twist of the law of the foreign exchange market can be non-financial experts predict and that today's financial tsunami from the question-bank more so at sovereignty-fund’s intervene and huge losses to be at sea.

 

Clearly, today's foreign exchange margin trading market has been basically in shock, some banks simply the end of the Ministry of foreign exchange margin the first time. Original, the foreign exchange margin trading market is an important place to retrieve scattered funds of the society’s middle, upper classes, if not this market, the flow of currency will be a serious decline, as a result, employment and the currency’s quantification-relaxed environment can hardly viable.

　

     A result of the above, the 20-nation summit to rectify the financial order must have the following two important measures:

 

A.    In addition to repurchase the bad debt of bank mortgage and to establish a un-laissez-faire article for the mortgage loan;

 

B.    To put in order that similar to China's sovereignty against the background of the customer funds out of foreign exchange margin trading market;

　

II.  About to replace the existing reserve currency and

the quantification-easing of monetary policy

 

Chinese bank president was advocated to development a reserve currency of exceed sovereign rights to replace the existing reserve currency the U.S. dollar is not realistic, Obama need not annoyed, Chinese bank president was a childliker people, because the reserve currency must show that there is movement of the market and value, could it wait the Chinese bank president how to find an extraterrestrial being to assure for the reserve currency of exceed sovereign rights?  Furthermore, the 20-nation summit doesn't have to waste time for it.

 

Secondly, Obama pointed out that the U.S. economy chronic treatment drugs are NOT God's mistake, God is the medicine the Federal Reserve Board to acquire treasury of 300 billion to one trillion, 700 billion refund of Chinese treasury bonds, which is the number of Chinese migrant workers which blood and sweat of long for thirty years accumulation of wealth it should be return to the people, but regardless how to use the 700 billion funds by Chinese bank president, Bank of England (BOE) governor to achieve the inflation objective of price stability and the quantification-easing of monetary policy of European Central Bank (ECB), vice president can also be easing immediate to come true.

　

G20 should be to repair the financial system as a primary mission and avoid reviving the global economy an enormous amount of money invested will be in vain.