Posted on 08/11/2015 3:04:44 AM PDT by SkyPilot
As China contends with an economic slowdown and a stock market slump, the authorities on Tuesday sharply devalued the country’s currency, the renminbi, a move that could raise geopolitical tensions and weigh on growth elsewhere.
The central bank set the official value of the renminbi nearly 2 percent weaker against the dollar. The devaluation is the largest since China’s modern exchange-rate system was introduced at the start of 1994.
China’s abrupt devaluation is the clearest sign yet of mounting concern in Beijing that the country could fall short of its goal of roughly 7 percent economic growth this year. Growth is faltering despite heavy pressure on state-owned banks to lend money readily to companies willing to invest in new factories and equipment, and despite a stepped-up tempo of government spending on high-speed rail lines and other infrastructure projects.
A steep drop in the Shanghai and Shenzhen stock markets in late June and early July, only halted by aggressive government actions, appears to have dented consumer demand within China. Automakers, typically the earliest bellwethers of lower demand, have announced declines in sales last month; Ford China, for example, said last Friday that its sales had fallen 6 percent last month compared with July of last year.
China’s devaluation represents a difficult dilemma for the Obama administration. The United States Treasury has tried to use quiet diplomacy in recent years to encourage China to free up its currency policies, while blocking efforts in Congress to punish China for major intervention in currency markets over the past decade to slow the rise of the renminbi. Many in Congress have long accused China of unfairly building up its manufacturing sector at the expense of American jobs by undervaluing the renminbi, and the Chinese devaluation could fan those criticisms.
(Excerpt) Read more at nytimes.com ...
If the US does not have a major market collapse between now and October, I would be very surprised.
Rot Ro Relroy...
Ping
Scarlet Memorial: Tales Of Cannibalism In Modern China~ Zheng Yi (Author),
Red China is a bubble.
The Chi-Coms have a little over a year with Obama as president. A little over a year to freely seize the assets of the American "useful idiots" [Lenin's term for corporations] and complete Deng's version of Lenin's New Economic Policy (NEP).
United States Free Enterprise, INC.
INVOICE
Your Treasury certificates are your payment receipts. Thank you.
Unfortunately, a few hours after you devalue the renminbi, you want to devalue it again.
Haha!
China has at least 2% inflation this year. Plus, I love the funny line in the article where the country decided on 7% growth. You could see the Chinese reader thinking, “I wanted 8% growth, but no!” Like a country can ‘plan’ anything.
If China were to nationalize private companies it would be killing itself and break into a million little pieces. Plus, it would plunge much of the world into a deeper depression than we’re already in.
When our factories closed down, shipped off the China, and then our laid off people went on the dole that was our depression, one we ares still in. You can't kill something that is already dead.
Just order people to buy the cars.
Here’s another thing Trump has been harping about, it happens, it happens BIG TIME, and nobody not one person says “hey, maybe he was right”.
He should jump on this.
Sounds good to me.
As for worldwide deep depression it would last only as long as it takes for truly private companies in the West to be formed, augmented, or otherwise brought up to speed to once again produce our goods.
Westerners will just have to suffer using last year's smart phone for a few extra months in the beginning.
Meanwhile Red China disintegrates as hundreds of millions more citizens become unemployed and this time Tiananmen Square is China itself. End of Red China.
This is more in line with what I thought existed in Red China:
a significant portion of China’s largest companies remain state-owned enterprises, private sector companies are making their mark this year in part thanks to a heated IPO market both at home and overseas. E-commerce giant Alibaba debuted at No. 269 after scoring the world’s largest IPO in history in New York last year. Other notable newcomers include Dalian Wanda Commercial Properties , run by China’s richest man Wang Jianlin, and Lens Technologies, which turned its founder Zhou Qunfei into the world’s richest self-made woman.
I'd be willing to bet a modest sum that no one becomes rich without the approval of the Party.
The Soviet version of NEP was so successful that it scared the commies and they terminated it and the Nepmen.. Deng's version has the Communist Party members and families becoming the billionaires.
I cannot take you seriously. You don’t define your terms. You lie regularly. Free trade works. Central planning fails. It’s simple if you don’t have a rear view mirror pasted to the front of your face.
Trump’s been predicting this, for how long??
Free Traitors will one day be hunted down. You have your religion, gloBULLism, unfortunately this Free Trade "system" is not sustainable. You know it.
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