China is waging a currency war against the USA:
http://www.marketwatch.com/story/how-the-dollars-rise-led-to-the-yuan-devaluation-2015-08-11
Look at the U.S. Dollar skyrocketing against all other currencies:
Posted on 08/12/2015 9:03:30 PM PDT by tcrlaf
The "one-off" adjustment has now reached its 3rd day as The PBOC has now devalued the Yuan fix by 4.65% back to July 2011 lows.
The PBOC seeks to reassure... -CHINA PBOC SAYS YUAN REMAINS STRONG CURRENCY IN LONG-TERM -PBOC SAYS THERE IS DEMAND FOR DEVALUATION OF YUAN VS USD -PBOC CHANGE OF YUAN MECHANISM RELATED TO JULY CREDIT: ZHANG -PBOC SAYS YUAN CHANGE IS BENEFICIAL TO LONG TERM STABILITY -PBOC SAYS YUAN EXCHANGE RATE ADJUSTMENT ALMOST COMPLETED *YUAN RATE ADJUSTMENT POSITIVE TO CONFIDENCE IN YUAN: PBOC'S YI *NEW YUAN MECHANISM `POSITIVE' TO INTERNATIONALIZATION: PBOC YI *PBOC SAYS NO BASIS FOR YUAN'S CONSTANT DEVALUATION: ZHANG
Even before this evening's date with debasement history, Japan felt the need to step up the currency war rhetoric. Following disappointing Machine Orders data, Abe advisors Hamada warned that "Japan can offset Yuan devaluation by monetary easing," and so the race to the bottom escalates. China has its own problems as BofAML's leading economic indicator showed "the foundation for a growth recovery is not solid, facing more downward pressure," and while confusion reigns over why The PBOC would intervene at the close to strengthen the Yuan last night, the reality is the commitment isn’t to a devaluation for China’s exports, but undoubtedly its actions are directed toward trying to keep the wholesale finance interfaces somewhat orderly. Finally, China’s devaluation couldn’t come at a worse time for Argentina - about a quarter of the country’s $33.7 billion of foreign reserves are now denominated in yuan, which suffered its biggest loss since 1994 on Tuesday.
Having devalued the (onshore) Yuan fix by 3.5% in the last 2 days, China did it again... shifting Yuan to 4 year lows
-CHINA SETS YUAN REFERENCE RATE AT 6.4010 AGAINST U.S. DOLLAR
(Excerpt) Read more at zerohedge.com ...
There is NO WAY, no matter how desperately the FED wants to raise rates, (so Democrats can campaign on The Great Economic Recovery!!") that they can do it under these conditions, it seems.
I wonder the effect raising rates would have on the national debt. Admittedly I am not an expert on how the interest portion of that debt works.
An occasion for regime change in Argentina, one would hope.
Higher interest rates make debt grow exponentially.
L
China is waging a currency war against the USA:
http://www.marketwatch.com/story/how-the-dollars-rise-led-to-the-yuan-devaluation-2015-08-11
Look at the U.S. Dollar skyrocketing against all other currencies:
That’s what I thought, unless the rate is locked in for a long time. Still, we keep raising the debt so the new debt would definitely be at the higher rate. That could get very bad very fast.
This is making Trump’s statements re Chinese currency manipulation look very prescient!
It’s like he has a crystal ball or something :-)
I’m afraid it’s already very bad.
Good luck to you.
It has long bee said that a westerner cannot think like the Chinese do. That may be true, but the coming (or aleady here) Economic War with China has been talked about for the last several years.
IMO, China has ONE YEAR LEFT to complete it’s expansion initiatives, before America has real leadership again.
The combination of a weakening economy, and Donald Trump’s anti-China bluster is probably pushing them to move to Economic War.
It’s LONG been said that China could single-handedly crash the US Economy by driving the Dollar sky-high, the uncoupling from it, sending the USD into freefall.
Then they start selling the treasuries.
Game over...
Welcome to Zimbabwe/Weimar Republic style-inflation, American Idiocracy-Style.
While we’re wallowing in the economic riots, they consolidate the China Seas.
Oh absolutely it is already bad. Just saying, it will be even sores. That must be part of the motive to keep the rates where they are. They can spend more.
So call me crazy but China deliberately starts devaluing its currency and all of a sudden something goes boom in a major Chinese port city. Yeah, probably just a coincidence.
Pretty much.
As I said, good luck to you.
L
wow....I didn’t think of that.
My takeaway from this is that the Chinese government is losing all control of the economy and a severe depression in China will be unavoidable.
Oil prices are low now, and they will continue to go down. Oil under $40/bbl is likely later this year.
We’re all in deep trouble.
No, China is in deep trouble if their economy tanks’ along with countries whose budgets are based on much higher oil prices.
I'm not Asian but imo Asians especially China are much smarter in trade the USA has been. the politicians in the USA are owned and bought and paid for you know what. That's why I support Trump
All the Asian countries are devaluing their currencies. The USA doing nothing about it.
So where does that leave us? It seems to me that we’re headed for big trouble. It’s really getting crazier it seems.
Gypsies have crystal balls.
Looks like SOS ‘M. Ed’ Kerry has one too. He said if we didn’t stop being so difficult over giving insane Muslims nuclear bombs, our dollar might no longer be the world’s currency reserve.
And if our insane federales can’t continue printing the Benjamins as fast as possible, we’re skarewed.
Dollar Bubble Set To Burst As China Devalues Yuan
https://www.youtube.com/watch?v=hoe5WVJxnCI
Andy Hoffman-Something Gigantic & Horrible Happening This Year
https://www.youtube.com/watch?v=sTvczO4Bo60
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