[riverdawg]

About 4% against the US dollar, so far. As I understand it, the Chinese have a “noisy” peg of the yuan against the US dollar, allowing trades within a +/- 2% band of the peg. But the US$ has soared in the past year (e.g., a 20% rise against the Euro and many other currencies), and China's policy has dragged the yuan upward along with the US$. This has hurt Chinese exports to other countries, and the devaluation is designed to realign its currency with other non-$ currencies.

[1010RD]

Very good, RD, on the monetary side, but what is killing the world’s economy is terrible fiscal policy. China is paying for its centrally planned economy and missing (read aborted) people.

It’s the pension crisis, tax and regulatory policy that are at the heart of the problem. In a word: socialism.