Topic: Devaluation of Chinese Yuan - page 6. (Read 6884 times)
Someone is shorting yuan like Soros did to HongKong dollar during 97, the pressure is so high that they must give up some ground. Usually the operation is not a single one, but a combination of different positions in stock index future and major stocks, maybe even commodities
The Chinese are gearing up for something. First it was the "correction" on the stock markets and then they partnered up with the BRICS countries to create their own little circle of friends and now they are
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
I guess they would sooner break their neck. It may look as if they are up to something when essentially they may be just desperate in their efforts to save their own economy from collapsing...
Deep inside I never believed in China's economic miracle
I read today that Argentina (one of the countries they were signing deals with) has 1/3 of their foreign reserves denominated in Yuan, so this devaluation is hurting those who partnered on the Yuan as a reserve currency diversification (at least in the short-term but remember Armstrong's model is the $USD will peak 2017.9 or 2020.05).
Asia's economic miracle is still in place, because their debt is only at the corporate or LGO level and not unfunded social welfare liabilities to the tune of for example $125 trillion the USA owes the boomers. The West is demographically bankrupt, Asia is demographically fertile.
The population of Americas are 95 to 99% of European origin. Thereby the failing demographics can be remedied by sucking valuable human resources from outside (the pick of the basket). Isn't that exactly what the US has been doing the last 150 years? Is anything going to change? I guess many Asians would be happy to leave for the US if they were given such an opportunity...
A better life is only a world away
The Chinese are gearing up for something. First it was the "correction" on the stock markets and then they partnered up with the BRICS countries to create their own little circle of friends and now they are
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
It not a strategic move, it is not to make their exports more cheap. It is firefighting, they are dead scared of the price movements in equity and housing. It is panic.
The Chinese are gearing up for something. First it was the "correction" on the stock markets and then they partnered up with the BRICS countries to create their own little circle of friends and now they are
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
I guess they would sooner break their neck. It may look as if they are up to something when essentially they may be just desperate in their efforts to save their own economy from collapsing...
Deep inside I never believed in China's economic miracle
I read today that Argentina (one of the countries they were signing deals with) has 1/3 of their foreign reserves denominated in Yuan, so this devaluation is hurting those who partnered on the Yuan as a reserve currency diversification (at least in the short-term but remember Armstrong's model is the $USD will peak 2017.9 or 2020.05).
Asia's economic miracle is still in place, because their debt is only at the corporate or LGO level and not unfunded social welfare liabilities to the tune of for example $125 trillion the USA owes the boomers. The West is demographically bankrupt, Asia is demographically fertile.
This Minsky moment correction for Asia will be completed by 2020 and Asia will lead up in growth while the wheels fall off the West from 2020 forward until Singapore and Shanghai replace New York and London as the financial capitals of the world by 2032.
The Yuan devaluation is more of a reflection of the death of the West (massive deflation) than it is a statement about Asia.
Asia was primarily an exporter to the West. This collapse will ween Asia of that role and set it up to lead the world as a consumer and producing for its own constituency. The West needs to die as a consumer in order for that transition to occur.
Don't be fooled.
The Chinese are gearing up for something. First it was the "correction" on the stock markets and then they partnered up with the BRICS countries to create their own little circle of friends and now they are
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
at least one of their reasons is that now their exports will be cheaper. If you were buying something in USD, the price has now essentially gone down 1.9% or whatever they devalued the yuan. Of course politicians are now saying its giving them an "unfair" economic advantage.
Recently chinese economy is going down for that they have tried their best by reducing interest rates to provide liquidity and stopped many companies stocks trading to reduce further markets collapse and so on however they failed to stabilize or improve the conditions. Now it is their another way to provide benefits to all chiniese companies by devaluating their currency. These are dirty tricks but I don't think these things they can do for long time
The Chinese are gearing up for something. First it was the "correction" on the stock markets and then they partnered up with the BRICS countries to create their own little circle of friends and now they are
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
I guess they would sooner break their neck. It may look as if they are up to something when essentially they may be just desperate in their efforts to save their own economy from collapsing...
Deep inside I never believed in China's economic miracle
Third day of devaluation of the yuan but UK stocks rise. Reason given was an unlikely increase in US interest rates. Problem with devaluation of one currency is if other major currencies follow then it is just a meaningless cycle.
The Chinese are gearing up for something. First it was the "correction" on the stock markets and then they partnered up with the BRICS countries to create their own little circle of friends and now they are
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
devaluating the Yuan. It's as if they are preparing for a strategic move in the economic market. I would be worried if I was in debt to them at this moment.
Do anyone else see this pattern or am I delusional? Break the economy and win the war before it started?
Martin Armstrong's computer and I have been telling you for past years that October 1, 2015 is the BIG BANG and now you all better start to listen.
Wow, China did it again!
Poor Argentina has suffered the most, since about a quarter of its foreign reserves (however small for a 43 million people country) are denominated in Yuan...
Poor Argentina has suffered the most, since about a quarter of its foreign reserves (however small for a 43 million people country) are denominated in Yuan...
...
Tonight (US ET) China devalued a third time, that's three times in three days... Link:
http://www.zerohedge.com/news/2015-08-12/china-devalues-yuan-3rd-day-4-year-lows-argentina-suffers-losses-japan-escalates-cur
* * *
Ahh, if I had to guess, this is an issue that will be recurring for some time. Maybe a long time. This is just one more variable to throw into the financial and investment equations. Now it is harder still to figure out safe places for our money.
Shanghai is down 0.70% as I write.
Tonight (US ET) China devalued a third time, that's three times in three days... Link:
http://www.zerohedge.com/news/2015-08-12/china-devalues-yuan-3rd-day-4-year-lows-argentina-suffers-losses-japan-escalates-cur
* * *
Ahh, if I had to guess, this is an issue that will be recurring for some time. Maybe a long time. This is just one more variable to throw into the financial and investment equations. Now it is harder still to figure out safe places for our money.
Shanghai is down 0.70% as I write.
The world used to call China a market manipulator because it wouldn't let its currency appreciate.
Now it goes ahead and devalues its currency. Go figure.
Now it goes ahead and devalues its currency. Go figure.
In any form of fiat theres always a devlauation due to being no limits of pumped more in circulation.
I think its better to take away that, since most are in debt with china that it may be worth while though to have yuan if you more of them wanting to be the us world reserve currency.
I think its better to take away that, since most are in debt with china that it may be worth while though to have yuan if you more of them wanting to be the us world reserve currency.
This devaluation of Yuan will really force the people to keep their savings in some independent and easy to access currency and then remain only Bitcoin.It will be seen huge investment in coming weeks from Chinese and I am thinking this way also.
That would be no-brainer if the Chinese CB continues to devalue Yuan every night (which is what it seems to be fixed on right now, wtf)...
This devaluation of Yuan will really force the people to keep their savings in some independent and easy to access currency and then remain only Bitcoin.It will be seen huge investment in coming weeks from Chinese and I am thinking this way also.
...
MF Doom and TPTB
Yes, China is having problems with other countries having lower production costs re export products.
But for relatively complex products requiring certain reasonable quality standards (like rolling bearings), that production will likely stay there. Also re bearing production, robots are rapidly going into Chinese plants, lowering their costs.
We will see in a month or two whether or not small importers of some Chinese products (like us) benefit from lower prices.
And how contagious those lower prices really are (we buy much more from Korea than China, we also buy from Japan).
MF Doom and TPTB
Yes, China is having problems with other countries having lower production costs re export products.
But for relatively complex products requiring certain reasonable quality standards (like rolling bearings), that production will likely stay there. Also re bearing production, robots are rapidly going into Chinese plants, lowering their costs.
We will see in a month or two whether or not small importers of some Chinese products (like us) benefit from lower prices.
And how contagious those lower prices really are (we buy much more from Korea than China, we also buy from Japan).
This is a reflection of the China's collapsing manufacturing sector, which has I believe two consecutive readings below 50. It was turning into a rout. Also labor costs have risen so much in China and the Yuan had appreciated so much that China has become uncompetitive globally with manufacturing costs being about on par with the USA.
Overall this is an ominous sign of the collapsing global economy.
Overall this is an ominous sign of the collapsing global economy.
I have heard/read about many manufacturers saying the cost savings of manufacturing in china has gone away. Plus the logistical issues can become a nightmare if there are quality issues. Even a bunch of entrepreneurs on the show shark tank have stated this as well.
This is turning places like vietnam/thailand into more opportunistic places for manufacturing.
Go to the Martin Armstrong thread to learn more about what is really happening in the global economy.
I corrected MA's typo and clarified his intent as follows...
http://www.armstrongeconomics.com/archives/35858
http://www.armstrongeconomics.com/archives/35858
Quote from: Armstrong
The dollar rally and the devaluation of the yuan is not a fluke and it most certainly is not a one-time event. The dollar declined[appreciated] against the yuan for 19 years during the same timing that saw gold decline from 1980 to 1999. The major low on an annual closing basis at 2013 and 2014 was an outside reversal to the upside for the dollar. The Yearly Bullish Reversal stands at 683 and technical resistance stands at 658. The dollar filled the gap that existed prior to 1994 and is yet another confirmation that the dollar rally is underway.
Yes, the world trade is contracting and will get much worse after October.
...we see capital still pouring into the USA from both China and Europe. The real estate cycle has/or will peak with this turning point around the world from Switzerland, Britain, Canada, to Asia right down into India and Australia.
The dollar rally is unfolding despite the fact people do not understand why. They look only at the USA debt and assume the dollar must crash, when in fact, the problem we face is on a global scale and $18 trillion in U.S. debt is simply not the large enough for international capital tohide[runaway from the USA as a safe haven]. The future is going to be anything but a textbook move.
Yes, the world trade is contracting and will get much worse after October.
...we see capital still pouring into the USA from both China and Europe. The real estate cycle has/or will peak with this turning point around the world from Switzerland, Britain, Canada, to Asia right down into India and Australia.
The dollar rally is unfolding despite the fact people do not understand why. They look only at the USA debt and assume the dollar must crash, when in fact, the problem we face is on a global scale and $18 trillion in U.S. debt is simply not the large enough for international capital to
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