Mlies Guo: The Disappearance of the Hong Kong Dollar is the Beginning of RMB to Worthless Paper

On June 24th, Miles Guo, the founder of the New Federal State of China (NFSC), revealed in a live broadcast that the Hong Kong dollar will definitely disappear and that the disappearance of the Hong Kong dollar is the beginning of the RMB’s journey to worthless paper.

Miles stressed in the live broadcast the Hong Kong dollar will definitely decouple from the US dollar. He pointed out that there are two ways to unpeg the Hong Kong dollar. First, active unpegging, that is, taking the Hong Kong dollar off from US dollar and link it with RMB, or a basket of currencies (a country uses a combination of national currencies with different weights to determine the exchange rate of its own currency). Second, passive unpegging. As the Hong Kong economy collapses and subsequently unpegging from the dollar.

However, Hong Kong’s linked exchange rate system requires that every Hong Kong dollar sold by a note-issuing bank must be backed by a corresponding amount of US dollar reserves to ensure there are sufficient US dollar reserves to maintain a stable exchange rate. Therefore, if the Hong Kong dollar is unpegged from the US dollar in any way, then the Hong Kong dollar is no longer the Hong Kong dollar, which means that the Hong Kong dollar has disappeared.

In addition, Miles also judged that the Chinese Communist Party (CCP) would probably take the initiative to buy out the currency in order to save the Hong Kong dollar. However, this move by the Chinese Communist regime shows the world that it is not the so-called strong economic power of the Communist China, but the ambition of the Chinese Communist government to manipulate the currency.In this way, no country would want to peg its currency to the RMB. The RMB can only circulate in the Communist China, and once the government falls, the RMB without coupling with gold will have no value. Therefore, Miles Guo concluded that the disappearance of the Hong Kong dollar is the beginning of the RMB’s journey to worthless paper.