Posted on 08/11/2015 7:41:45 PM PDT by tcrlaf
99 out of 100 sheeple have no idea what a big F-in deal this is, and the huge effect it is goin to have on their lives and livelihood.
Hopey-Changey!
Tell us about the effect this is going to have on our life. Maybe your post won’t get removed.
I thought the value of currency was market based.
Everything in China is hocus-pocus and will eventually collapse. They even lie about their GDP and everything else.
The price of Chinese imports gets LOWER, making it harder for U.S. Companies, already saddled with the added costs of runaway Government, Edicts, and Regulations, to compete.
Not in China.
And a central bank can set their currency price by making a market in gold or pegging to another currency.
The markets themselves are based on lies.
Obama! This is aimed at you. Are you listening.
Japan and South Korea are going to be forced to respond in kind very soon. (like 24-72 hours) Then the real fun begins.
Value of a currency is market based in the long run, but in the short run it can be forced otherwise. Doing so will provide short term benefits, but eventually the disparity gets so acute that the system collapses. The point of a currency war is to make the other country’s economic system do the collapsing first.
Tit-for-tat, “beggar thy neighbor” vicious circle to begin soon?
Imagine the GOP POTUS who gets to set this straight and just how easy it will be.
Free markets?
We didn’t listen to Perot when he told us about NAFTA.
We didn’t listen to Romney when he warned us about China.
We’d better listen to Trump about China. He’s been warning us. This is our last chance.
From Zerohedge:
“this devaluation is likely not a one-time event but rather the beginning of an ongoing and persistent depreciation of the CNY versus the USD.
The embedded USD short position within the carry trades will begin to result in losses and margin calls as the USD appreciates versus the CNY, thus forcing investors to liquidate some of their positions.
These trades, which took years to amass, could unwind abruptly and exert an influence of historic magnitude on markets and economies.”
Translation: Commodities are going to get crushed in the coming weeks, as people sell “physical” to cover currency losses.
$1 / gallon gasoline, here I come.
Incidentally, what will this do for China's coal purchases (from Australia, I believe)?
We won’t have that long
But no worries, surely obama’s crack team of international financiers will be all over this
Gotta save the man child’s legacy Pacific Trade Pact , after all
Pegs??? Hahaha. Not so. They can TRY to peg to another piece of paper, but sometimes it blows up in their face.
For further immediate details, ask the Swiss. Ask them what happened to their famous (or infamous) 1.20 peg to the Fishwrapper (that’s the Euro, for those FReepers not familiar with my longstanding slang).
Renminbi has been UNDERvalued for years, and this new lowering of its value will stab a bunch of countries, especially including the stupid Brazilians, right square in the knee.
Japan and South Korea are going to be forced to respond in kind very soon.
........
Japan and South korea have already devalued their currency as has the eurozone. they all want to export to the USA and undercut US exports to other countries.
they figure to export their way out of their problems. likely they’ll be successful. the usa will pay the price.
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