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 ...
LOL!
Have you been watching Bonner’s video? I got it in my email this morning.
It could also all occur some September around Tishri or in a manner that reminds of us the Hebrew festivals and holy days....just as you claim! Not closed to the idea of it...but in the end only the Father knows!
I don’t know who Bonner is..
The owner and Founder of Agora Publishing.
The Father’s prophets have clearly stated that it is Tishri 1, and they are not “Hebrew Festivals,” but YHVH’s Appointed Times.
Literally all of his events occur on his appointed times, from the beginning to the end.
I think it more proper to state that his plan unfolds in the pattern denoted or “typed” by his established historic festivals...not necessarily by the calculated timings as men understand time! That the plan is unfolding like a flower blooming that undergirds all history is without doubt! How we time it is not how God times it, indeed God dwells outside of time.
For example, God said to Jacob that Israel would be 400 years in Egypt before he would bring them out. It was actually 480 years as Moses was 80 years old when he led the nation out. Now one could argue that the 400 years ended when Moses was born...but it still took 2 40 year generations before God had Moses ready to lead! Was God inaccurate in his statement to Jacob? No! At 400 years, Moses was born. Satan certainly was aware that God was ready to move as Pharoah had been provoked to kill the new born Hebrew male children...but like Satan has ultimately always done at important key junctures of spiritual history...”whiff, swing, and a miss!” God has always reserved for himself periods of indeterminate timing such as the suspension of the final activities of the 70th week for an unknown period(known only to God) as the Church age was in play...until he was ready to act!
Its all relative. Stronger than Yuan, yes but weaker against everything else. Weaker against commodity prices, weaker against energy price, weaker against food prices, weaker against gold/silver. The losers are citizen holding yuan or USD because they’re losing purchasing power
the way I view this
inflation=cause
devalue=effect
Yes it does. It is because we are in a the throws of deflation. Each month the FED sells, at the allowance of congress, given to the Department of Treasury, and they, in turn, delegate the FED to sell 40 billion dollars worth of bonds. That means they sell debt. The sell dollars. The FED even pays the international banks to take that purchase and sell it for them. Some goes to Japan, some to china, mostly to the banks. The problem is that since QE began the FED has sold 4.6 trillion dollars and yet, they fail to induce even a modicum of inflation. They want an inflation rate of about 2%, yet with all of the FED selling dollars they cannot do it. The FED can hardly break even the dollar. Where does it all go? Let me let you in on a secret. With the printing we all would expect inflation to be soaring. But NO! It is because though they print 40 billion per month, this country incurs debt at an even greater rate. We are in the middle of a debt bubble unlike anything the world has ever seen. And it is about to rupture. It did rupture on Sept. 16, 2008. That day the FED injected over 500 billion dollars and then closed down the markets. They broke the dollar. In other words the money markets (denominated in dollars) dropped below $1.00. The dollar became worth less than a dollar. The spiral downward had started and the only way they could stop it was to stop trading. The money markets seized-up. If it had not, there was no way to tell if the dollar would drop to .75 or .55. Trillions were lost that day.
And that was a much less complex problem then than it is today.
When it does begin that downward acceleration (and it may with the devaluation of the yuyuan) there will be no institution on earth which will stem the drop. It will develop faster and uglier than 1929. And it is coming at us like a freight train, and most of us are oblivious.
A little example.......You and your wife need some living room furniture. You go to the store and purchase 1500.00 worth of furnishings. You put down $150 and the store sells your note to a bank to pay them back, interest free over the next 30 months. You just printed, like the FED, $1,350. If you don't default (lose a jobs, incure excess medical bills, have to put unexpected money in repairs for a car, you will slowly wittle down that not and pay it off. Many, many people do not. Even Donald Trump refused to pay his bill on 4 corporations and defaulted. That kind of thing is accelerating all of the time.
Hell has our ticket and its about to cash it in. It is going to get ugly. War, famine, food shortages, civil upheaval. As you said your comedy (gasoline) is going down. So is diesel, gold, silver, cattle, orange juice, .....all commodities. We say it is cheap now. But when food producers (beef, corn, beans, etc) cannot buy diesel and fertilize to raise their crops, and the trucker cannot buy diesel to truck it to the food processor, then the diesel is not available to truck it to the outlets and stores the problems will become unmanageable very, very quickly. Get out of debt. Do not allow normalcy bias victimize you. See things as they are, not as you and I wish them to be.
Tell me what you think of Bonner.
The scenario you are describing will affect those with and without debt....there are those without debt but are still marginally holding on...they will be also affected by the great “financial apocalypse” you are describing as well. No services, no electric, no products to buy, even hoarded gold and silver will hold less value than a loaf of bread! The preppers may have an advantage for a time but unless they have banded together and have taken over whole regions of the country they will not survive. The danger is that these areas become almost feudal and unable to unite should hostile world powers decide to invade our nation whole hog. A warlord situation will develop quickly in certain areas. You must keep in mind that there also are nukes available to a central government who would be desperately trying to keep order especially if run by folks hostile to freedom and religious minded population groups. “Nuff said”. In the scenario you describe...debt or no debt, everyone becomes impoverished!
A debt Jubilee may be the only way to stabilize the international economies...all debts public and private and between nations are simply canceled...derivatives are canceled. Who ever has can keep what they have and those without can be given a fresh start...ect. The problem is this could only be administered by a world wide agency, set up during the crisis, which would help usher in an evil world government. The debt jubilee is the right idea but I fear it will be administered by very evil people who hate God! The idea is that people would have to be more closely monitored and the means of production tailored to trends and predicted needs. You can’t let the world go back to repeated periods of unstained debt and revenue busts and bubbles, after all! Bio metric markers such as figerprints would be used to register every transaction and later folks would be chipped. It will all seem benign until folks learn the catch...oh you can’t be one of those “Christians, those homophobe, misogynistic racist bigots” and you have no choice not to be chipped as currency and hard money are meaningless...it is all electronic bits now! Nope we will all have to swear fealty to the Chairman of the emergency international financial stabilization agency who is demanding that all refer to his person as Lord! That is what this scenario you have painted may ultimately lead to...
You bring up a good point and sadly one I constantly overlook; the un-funded liabilities looming in our future. I have seen lots of numbers bantered about as to what that sum actually is. Regardless, it is too much for us to sustain and realistically pay for under our current structure.
That makes perfect sense in a scholarly economic way-- a great theory for a PhD. Then when when folks like me point that it don't work that way in real life--
--then you can simply respond like a typical economics scholar saying "well! that's all well and good for some fancy real life but how are your ideas going to survive when it comes down to hard cold theory?" Related article: Even the Top Economists Are Bad Investors - Ike Brannon,Weekly Standard
the problem with that graph you show in the CPI number is not correct and USD dollar is an INDEX. It compares strength of USD vs other currency. When all other currency is devaluing, it creates the impression that USD is strengthening
here’s a video on how CPI numbers are rigged
https://www.youtube.com/watch?v=zPkTItOXuN0
So sorry, I deal with the real world and that graph is a false representation of reality
The Right, to win elections, only need do ONE thing each and every election cycle:
Send a ‘bill’ to each household w/ a break-down of cost(s). SPECIFICALLY state the $$ for EACH member of the family (IE: If you have children, under the age of 14, their ‘obligation’ is $X, before they earn penny ONE.)
Course, one would need a party that wants to ACTUALLY reduce govt, not just be the ones in ‘power’ to do...nothing. Calling attention, as above, is NOT in D.C.s interest.
I think Bonner is a man with a tremendous storehouse of knowledge of economics, who is using that knowledge primarily to enrich himself.
What do you think?
But, that aside, I do feel this is the run up to a one-world currency, the Mark by those 'not-so-nice' people you reference.
I believe civil unrest will develope rapidly once the downward spiral of deflation begins to accelerate. It will become dangerous then. We must all guard against normalcy bias. I look forward to watching for your comments on FR. Thank you.
I, like you, signed on to Bonners material. I think he has got it right. It is a credit bubble which is going to take us down. I have been thinking too small.....subprime bubble, student loan bubble, etc. It is all of them taken together which is overwhelming the ability of the FED to ‘catch up’.
I don’t believe that ultimately there is any desire to “catch-up.”
It’s just the middle game that we are witnessing, as they progress to total digital control of our lives.
Part of that opinion is, of course, based in understanding of prophecy.
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