Posted on 08/06/2019 7:53:50 AM PDT by BenLurkin
China priced the yuan's reference rate at 6.9683 to the dollar on Tuesday, a hair above the key 7:1 ratio to the US dollar. Although that was the weakest level for the yuan in 11 years, many Wall Street investors feared China would price the yuan below that psychological 7:1 barrier.
The managed yuan continued to slide Tuesday, but the pace of its decline slowed. One dollar last bought $7.0200 yuan in China, anld 7.0490 yuan in the offshore market, where the currency trades more freely
China devalued its currency on Monday, leading it to fall below a key threshold that had last been breached during the financial crisis. Global stocks sold off in response and the Dow, S&P 500 and Nasdaq Composite logged their worst day of 2019. The Nasdaq was the worst hit, because tech stocks would be hit particularly hard by an escalation in the trade war.
(Excerpt) Read more at cnn.com ...
Great. This is the best for everyone, including China.
How disappointing for CNN and the Lefties.
Business Insider is an odd name for a left-wing website
China is loathsome.
Yeah lol
They sound pi@@ed off.
“China wouldn’t stand up to Trump the bully!!”
is what they wanted to say :)
It is a little bounce. Up 100 after falling 800 isn’t much of a bounce but still. I wondered last night just how the market priced this change in exchange rate? Whatever bad news the reaction is always extreme and the peeking out of the closet is always slow and timid. So it goes. Such is the market.
Exactly. Their forced human organ harvest program should make them the pariah of the world.
It may not always work 100%, but the last president on the Republican side who had the same ability was President Reagan and on the Democrat side President Kennedy. Since Reagan no other President from either party could make the other side pause, until Trump came along.
I am not sure how all of this will end. The world economy is WAY overdue for a recession (several market signals don’t look too good), thus a month or twelve from now things might be different. But that doesn’t take away the fact that President Trump can cold stare the enemy, and the enemy will look down.
World economy? They need us we don’t need them.
They have improved over the years. From 100 % wrong to 90 % wrong.
Much as I’d like to see the silver lining here, I’m at a loss as to how this is China blinking. The market is grasping at straws. Devaluations aren’t completed in a single day. It’s been at 7.0x for the entire day.
“Exactly. Their forced human organ harvest program should make them the pariah of the world.”
No! The Russians are the enemy! Why? Because they are White! It would be racist for the left to rail against the Chicoms. The Russia nonsense feeds the white supremacist/nationalist meme.
Krushchev didn’t blink too hard. He got the biggest benefits out of the missile confrontation. JFK gave up a lot.JFK blinked badly at an earlier meeting which most likely motivated K to ship the missiles to Cuba.
Yesterday's decline wasn't the result of a massive sell-off due to changing market fundamentals. It was the result of a large informal "write-down" for every major company that has assets in China that effectively lost a lot of value in U.S. dollars simply because of the change in the yuan-dollar exchange rate.
If I have a manufacturing plant in China that is valued at 500 million yuan and the exchange rate is 6 yuan per $1 U.S., then this plant is listed on my books as a an asset with a value of just over $83 million.
If the Chinese government decides tomorrow to devalue the yuan so it is now exchanging at a rate of 7 yuan per $1 U.S., my asset is now worth less than $72 million even if the factory is still humming along producing the same volume of products.
As far as agricultural products go, we do. This sector produces MUCH more than the American public can consume on it's own.
Damn, should have bought some Yawns when it was over 7.00.
China is financing continued cheap exports on the backs of it’s citizens now, who are about to get smashed with hyperinflation.
Anyone paying attention knew this was China’s last big weapon, which is why trillions of dollars of capital has fled in the last 6-9 months, being taken overseas and converted into dollars and euros.
Now that China has pulled the trigger, they can only continue to do so, making things worse.
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