Here's why China devalued its currency

[Jlaw]

Not good for USD, for USA coz u soon will see CN commodities floor US's market.

Only TPP which should come out in abt 3 years can save USA against CN in currency war now

So when/if TPP take affect, will we see more of these?

Tax survey: 41 percent of foreign firms have to pay bribes in Vietnam | Business | Thanh Nien Daily

 

[NiceGuy]

So when/if TPP take affect, will we see more of these?

Tax survey: 41 percent of foreign firms have to pay bribes in Vietnam | Business | Thanh Nien Daily

U guys will see VN still survive, when not sure if CN can survive or not

 

[ito]

China wants to boost its exports amidst falling exports,hence the devaluation. I guess this year, Chinese GDP growth rate should be well below its forecasts.

 

[senheiser]

funny how americans are fast to cry first about it yet they devalued their currency since the iraq war. China better keep doing it because thats what all the first world countries are doing it now

 

[Keel]

The chain reactions from hater countries mean China is doing the right thing again.

You want to set us up in the SDR quirgmire. We can get away from the trap if you dont give us fair opportunities.

The nutcases have been crying "China collape this or China collapse that " not knowing we are doing the world many big favours before this minor adjustment which is already sending a wave across bigger than expected

Now it is their own arses to wipe and keep leaking

China is already rendering a bit of kindness in this finesse. Why? No more free lessons!

Hahaha, the drama is in ACT 2

不发威当我们是肥猫

ps the more the China-hater gives "lectures" on economics the bigger the comics despite stealing of useful economic terms from my prior postings

 

[TaiShang]

The chain reactions from hater countries mean China is doing the right thing again.

You want to set us up in the SDR quirgmire. We can get away from the trap if you dont give us fair opportunities.

The nutcases have been crying "China collape this or China collapse that " not knowing we are doing the world many big favours before this minor adjustment which is already sending a wave across bigger than expected

Now it is their own arses to wipe and keep leaking

China is already rendering a bit of kindness in this finesse. Why? No more free lessons!

Hahaha, the drama is in ACT 2

不发威当我们是肥猫

ps the more the China-hater gives "lectures" on economics the bigger the comics despite stealing of useful economic terms from my prior postings

Exactly, bro. China's years long magnanimity has reduced gear; it is now earlier currency manipulators and "made in whatever" dreamers to worry about.

***

Pain felt overseas as yuan hits new low

The Chinese yuan hit a new low on Thursday after the central bank announced reforms to make the exchange rate system more market-oriented.

The People's Bank of China reduced the yuan's reference rate to 6.4010 yuan per dollar, down another 704 basis points, this morning. This was the third cut in three days.

Since Tuesday, the yuan's reference rate has dropped by a total of 4.66% against the dollar.

The People's Bank of China held a press briefing on currency reforms on Thursday morning, saying that the rise in new yuan loans and monetary easing had affected supply and demand in the forex market, which in turn caused devaluation pressures on the yuan rate.

Chinese banks extended 1.48 trillion yuan in new yuan loans in July, much more than had been forecast. The central bank also said that the yuan's earlier midpoint deviated about 3% from market rates, and the adjustment was partially aimed at correcting that deviation.

Some foreign media outlets indicated that Tuesday's move might have been a deliberate attempt to boost exports. But Chinese central bank's Vice-Governor Yi Gang said that China's exports are doing fine, and there's no need to boost exports by adjusting exchange rates.

Yi also said that minor fluctuations will not easily affect China's schedules in terms of the opening of its forex market.

However, the effect of yuan’s devaluation has been felt overseas. Retailers and tourism service providers in Hong Kong are feeling the pinch of a cheaper yuan. Analysts also expect less mainland capital going into the Hong Kong property market.

For the world’s number one economy, commentators say that the US has been feeling the pain since Tuesday.

Yuan’s devaluation will push the US dollars to be stronger, and increase the cost of US goods in China, such as iPhones or cars, leading to lower sales by American companies in China. It will also make American exports to China more expensive.

 

[Jlaw]

Here's an interesting article:

The Dollar Collapse Is Coming: U.S. Dollar Collapse should be Getting Attention, not China’s Devaluation - Patriot Rising

The Dollar Collapse Is Coming: U.S. Dollar Collapse should be Getting Attention, not China’s Devaluation
Posted August 13, 2015 3:23 pm by PatriotRising with 0 comments

Peter Schiff, CEO of Euro Pacific Capital and bestselling author of “Crash Proof,” believes the impending collapse of the United States dollar should be getting the attention of investors and news outlets and not the devaluation of the Chinese yuan.



Speaking in an interview with Newsmax TV on Tuesday, Schiff explained that the U.S. economy has an abundance of problems but China’s monetary policy (SEE: Donald Trump on China’s Devaluation: ‘They’re just destroying us’) isn’t one of them.



The contrarian investor stated that China’s economy isn’t experiencing a freefall and the current devaluation is minuscule. He noted that the yuan’s value has substantially increased over the past several years compared to the U.S. dollar.


“So this move was motivated not by the exchange rate between the yuan and the dollar, but between the yuan and all the other currencies because the dollars is in a bubble right now,” he said. “The dollar is very overvalued … and the dollar is a bubble. This dollar bubble is going to burst.”



He added that the U.S. economy is in a much worse situation right now than the Chinese. This is something, Schiff says, the Federal Reserve will have to admit. He also averred that the Fed won’t raise interest rates this year (SEE: Federal Reserve rate hike could cost indebted consumers $9 billion per year) and will have to do another round of quantitative easing. (**like I said before, QE 4 ever**)



“That’s going to sink the dollar and then the Chinese are going to have to revalue their currency much higher in the future against the dollar and it’s the dollar collapsing that’s going to hurt the US. Not this recent move by China,” Schiff posited.



The reasons why the U.S. dollar has been trading well since the financial crisis is because of hope, hype and speculation.



Schiff alluded to the immense trade deficit with China, and how China is producing all things the U.S. consumers and can’t produce. On the other hand, however, the U.S. doesn’t produce anything the Chinese want to consume.



Overall, Schiff asserts, the Chinese economy is “far more powerful” and “far more dynamic” than the U.S. economy. This is why the U.S. suffers from massive deficits.



“But people believe in the myth of this US economy, they believe that this bubble is genuine, they made the same mistake in the late 1990s, they made the same mistake right before the financial crisis of 2008. They’re making a mistake again,” said Schiff.



“We’re on the verge of a much worse financial crisis than the one we went through in 2008 and it’s going to take the form of a currency crisis. You’re talking about currency wars. American is going to win the currency war, which is a race to the bottom, and you don’t want to win a currency war because a currency war is different from most wars in that the object is to kill yourself and unfortunately, we’re going to succeed.”



At the time of this writing, the Dow Jones has fallen more than 200 points, while the Shanghai Composite Index has hiccuped just 40 points.



Reprinted with permission from Economic Collapse News.

Exactly, bro. China's years long magnanimity has reduced gear; it is now earlier currency manipulators and "made in whatever" dreamers to worry about.

***

Pain felt overseas as yuan hits new low

The Chinese yuan hit a new low on Thursday after the central bank announced reforms to make the exchange rate system more market-oriented.

The People's Bank of China reduced the yuan's reference rate to 6.4010 yuan per dollar, down another 704 basis points, this morning. This was the third cut in three days.

Since Tuesday, the yuan's reference rate has dropped by a total of 4.66% against the dollar.

The People's Bank of China held a press briefing on currency reforms on Thursday morning, saying that the rise in new yuan loans and monetary easing had affected supply and demand in the forex market, which in turn caused devaluation pressures on the yuan rate.

Chinese banks extended 1.48 trillion yuan in new yuan loans in July, much more than had been forecast. The central bank also said that the yuan's earlier midpoint deviated about 3% from market rates, and the adjustment was partially aimed at correcting that deviation.

Some foreign media outlets indicated that Tuesday's move might have been a deliberate attempt to boost exports. But Chinese central bank's Vice-Governor Yi Gang said that China's exports are doing fine, and there's no need to boost exports by adjusting exchange rates.

Yi also said that minor fluctuations will not easily affect China's schedules in terms of the opening of its forex market.

However, the effect of yuan’s devaluation has been felt overseas. Retailers and tourism service providers in Hong Kong are feeling the pinch of a cheaper yuan. Analysts also expect less mainland capital going into the Hong Kong property market.

For the world’s number one economy, commentators say that the US has been feeling the pain since Tuesday.

Yuan’s devaluation will push the US dollars to be stronger, and increase the cost of US goods in China, such as iPhones or cars, leading to lower sales by American companies in China. It will also make American exports to China more expensive.

That is power bro. When we sneeze the world catch a cold. A 2% decrease caused a panic. If China decrease by 4% there be ww3.

 

[TaiShang]

“But people believe in the myth of this US economy, they believe that this bubble is genuine, they made the same mistake in the late 1990s, they made the same mistake right before the financial crisis of 2008. They’re making a mistake again,” said Schiff.

It seems President Obama will leave a ticking bomb in the laps of the next government. All he is trying to do is to sustain the mirage until his term ends.

 

[NiceGuy]

Exactly, bro. China's years long magnanimity has reduced gear; it is now earlier currency manipulators and "made in whatever" dreamers to worry about.

Exactly ?? so why didnt u say my prediction in January abt the fall of CNY is correct ?? Bcz u guys have short vision and low IQ , so u guys cant see what will happen ??

Do u know who will win in this currency war that Mr.Xi just started??

 

[Viet]

Exactly ?? so why didnt u say my prediction in January abt the fall of CNY is correct ?? Bcz u guys have short vision and low IQ , so u guys cant see what will happen ??

Do u know who will win in this currency war that Mr.Xi just started??

bro, chinese cooked economic data as they please. Just one example: Ccp statisticans need only 2 weeks to calculate GDP data, while much more advanced countries such as the US and Germany need 4 or 6 weeks. How is it possible? If you read the articles and comments in the western media today, chinese lost all credibility.

Though I am not as pessimistic as you with 50 per cent devalutation, many bet on 25 per cent.

 

[NiceGuy]

bro, chinese cooked economic data as they please. Just one example: Ccp statisticans need only 2 weeks to calculate GDP data, while much more advanced countries such as the US and Germany need 4 or 6 weeks. How is it possible? If you read the articles and comments in the western media today, chinese lost all credibility.

Though I am not as pessimistic as you with 50 per cent devalutation, many bet on 25 per cent.

Infact, this currency devaluation is just a Test to check what will happen when CNY drop when TPP come out, so, CNY will not drop so much this time.

Mr. Xi will have to find out another way for CN to survive in currency war, CN is simply too weak against US

 

[EAsian]

bro, chinese cooked economic data as they please. Just one example: Ccp statisticans need only 2 weeks to calculate GDP data, while much more advanced countries such as the US and Germany need 4 or 6 weeks. How is it possible? If you read the articles and comments in the western media today, chinese lost all credibility.

Though I am not as pessimistic as you with 50 per cent devalutation, many bet on 25 per cent.

You do know that Vietnam publish their economic data before the period been caculated in the book not even ended，don't you？

 

[Jlaw]

It seems President Obama will leave a ticking bomb in the laps of the next government. All he is trying to do is to sustain the mirage until his term ends.

If you live in the west as long as I have you will know that all politicians just "kick the can" down the road when it comes to real issues. Since you only have 4 years to do anything good you only care about bandage solution. No one really does anything to benefit the country in the next twenty years.

 

[Viet]

You do know that Vietnam publish their economic data before the period been caculated in the book not even ended，don't you？

No I don't. The only thing I know is for example China even exported rice during the famine. Mao Zedong wanted to hide the mass deaths at home. Having a good face was for him more important. I am surprised if Xi Jinping does not follow the foot steps of his chinese rulers.

 

[sweetgrape]

You do know that Vietnam publish their economic data before the period been caculated in the book not even ended，don't you？

Hehe, he know nothing,
And he compared China with advanced countries, not Vietnam,