Posted on 08/11/2015 4:06:44 AM PDT by expat_panama
China's shock 2 percent devaluation of the yuan on Tuesday pushed the dollar higher and raised the prospect of a new round of currency wars, just as Greece reached a new deal to contain its debt crisis.
Stocks fell in Asia and Europe as investors worried about the implications of a move designed to support China's slowing economy and exports.
The stronger dollar hit commodity prices, driving crude oil down after Monday's hefty gains.
Weaker stocks lifted top-rated bonds, with yields on euro zone debt also falling on the Greek deal, struck nine days before Athens is due to repay 3.2 billion euros to the European Central Bank.
China's move, which the central bank described as a "one-off depreciation" based on a new way of managing the exchange rate that better reflected market forces, triggered the yuan's biggest fall since 1994, pushing it to its lowest level against the dollar CNY=CFXS in almost three years.
The Australian dollar AUD=D4, often used as a liquid proxy for the yuan, fell 1.1 percent to $0.7324 as the U.S. dollar rose 0.4 percent against a basket of currencies .DXY before paring gains.
In Asia, the Singapore dollar SGD=D3 hit a five-year low while the Malaysian ringgit MYR= and the Indonesian rupiah IDR= hit lows not seen since the Asian financial crisis 17 years ago. The Japanese yen JPY= hit a two-month low of 125.08 to the U.S. dollar.
The euro EUR=, buoyed by the Greece deal, rose 0.1 percent to $1.1022.
U.S. reaction will be crucial. Washington has for years pressed Beijing to free up the exchange rate to allow the yuan to strengthen, reflecting the growth in the world's second-largest economy.
Today, China's economy is slowing and the new exchange rate mechanism gives markets greater ability to push the yuan lower...
(Excerpt) Read more at reuters.com ...
Well the other thing is that the $$4 could be worthless and other currencies are more worthless. Just saying.
Upon what are the dollars values being loosed?
Why next month...the “blood moon” business?
29 Elul is Sunday, Sept. 13th.
Shemitah. The moons are just a sign—not a cause.
Saying but not doing. I mean, you're sure as heck not willing to toss your dollars in the trash are you?
I wasn’t speaking of them as a cause....just a sign. But there was chatter about this September being the beginning of a whole bunch of “stuff” so you’ve just confirmed that for me!
If God chooses September to begin to judge us in earnest it is for our sins!
...the dollar does not buy as much...
As much of what? Five years ago dollars bought gold...
you choose one item
--and you chose no items. Inflation means we look at actual prices. Sure, too often on these threads folks go for feeeeelings but those of us working in the economy look at prices. Either people list a stack of typical goods along with their transacted prices over time or their not to be taken seriously.
I had the TV on over the weekend and there was a national ad from a bank(forget which one) offering a 0.25% 180 day CD. That is about like throwing $$$ in the trash.
Because I thought it was pretty much self-evident.
What was the cost of a Big Mac 5-10 years ago? A box of cereal? A car? Your electric rates? A pair of socks? A pizza? House prices? Rent?
The point is that most of everything we use to live on has risen in price--the value of a dollar is less because one dollar buys less of common consumer goods. I'm not talking about investment in a metal.
A hurried forced international agreement that all debts public and private as well as international could reset the economies in a positive way(an international “Jubilee” if you will)...the hard hearted elitists will never allow their power to be diluted that way without intervention from on high!
Proverbs 28:8He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor.
It's the difference between devaluing and inflation.
de•val•ue
(diˈvæl yu)
v. -val•ued, -val•u•ing. v.t.1. to set a lower exchange value on (a currency).in·fla·tion
inˈflāSH(ə)n/nounnoun: inflation Economicsa general increase in prices and fall in the purchasing value of money."policies aimed at controlling inflation"
We hear pundits and posters confuse these terms a lot.
Preppers ping?
You're asking me and you don't know.
When we talk inflation we look at prices first and only after we see them do we decide what the trend is. In the mean time what we do have is that the dollar is not being devalued and in fact it's increasing in value on the international exchange markets. You can say we got inflation internally if you want but if you're talking "inflation" it's believable only when you're also pointing to an actual list of a basket of prices.
It doesn't mean the "value" of the dollar is strong. The economies across the world all suck.
The ‘value’ of the dollar is akin to the unemployment numbers....hot dog squeeze. The game is rigged and EVERYONE uses the wrong numbers...
There’s $120+T in unfunded liabilities (political ‘promises’ that even some here believe they are ‘owed’).
Just because nobody talks about it doesn’t mean the elephant left the room.
We have an administration that has a Federal Reserve that can print the money to pay the interest. They have printed money to make up for American’s being out of work to replace lost revenue... Nothing to see here, just move along. Invest accordingly. Only when working American’s quit working because they cannot support themselves will this economic deck of cards collapse.
I should say all debts canceled...!
Only when we want to sound philosophical. When it's time to feed ourselves we have to do work that others are willing to pay money for at an agreed price, and the money gained is used for survival also at agreed prices. What we got today is that Chinese oil, gold, and electronics are now being offered to us for fewer dollars and our dollars now have more value --in their eyes.
Ordinarily that's a good thing but this case their falling prices seem to be caused by an econ downturn, which can be bad for us as that sort of problem tends to spread.
I’d encourage you to take a look at the hit international companies are taking from the “strength” of the US Dollar. Hint: Its billions of dollars of losses.
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