By Stratfor Global Intelligence The recent fluctuations in China’s currency typify the best and worst of a globalized world, where developments in one place can instantly change the political and financial calculations of governments in others. For most of human history, the communities, cultures and economies of the world existed independently of one another, separated … Continue reading
By Frank Shostak Earlier this month, the Chinese government decided to depreciate its currency on three consecutive occasions. On August 13, the price of the US dollar was trading at 6.413 — an increase of 3.3 percent against July. The key factor behind the central bank’s lowering of the yuan is a sharp decline in the … Continue reading
By Jim Randle Some investors say China’s wild stock market gyrations have been made worse by worries about the reliability of that nation’s economic data. Critics say the reports can mislead investors by painting an unrealistically strong picture of the economy. Some economists doubt the official growth figures because other data, such as passenger travel and … Continue reading
China’s staggeringly long history reaches back well at least 3,000 years, and possibly more, depending on who’s asked. If any single pattern can be pulled from so much history, it’s this: no Chinese dynasty lasts forever, and when they fall, it’s always catastrophic for China in general. Chinese political thinkers underpin much of their … Continue reading
“The International Monetary Fund pushed back until Sept. 30, 2016, the date that China’s yuan could be included in its basket of reserve currencies,” Bloomberg reports. The news agency said the following: The executive board, which represents the IMF’s 188 member nations, voted Aug. 11 to extend the composition of the fund’s Special Drawing Rights for … Continue reading
Following a week after China’s first major currency devaluation in over two decades, which rattled global markets throughout the week, as emerging market currencies where hit the hardest, and thus drove currencies in Colombia and Turkey to new record lows. Let us take a look at the biggest losers in the emerging markets from the ordeal: Malaysia’s ringgit and Indonesia’s … Continue reading
By Andrew Sheng and Xiao Geng Secular stagnation is looming worldwide, and China is no exception. Globally, the unprecedented monetary and fiscal stimulus following the 2008 financial crisis has caused debt, equity, and property prices to peak, even as trade and investment decline; all of this has depressed demand, economic growth, and inflation. For China, … Continue reading
By Alex Christensen China’s decision to let the yuan depreciate last week came for a number of reasons, including being a needed boost for Chinese export industries. But there are two sides to every currency swing, as the following countries are quickly learning. Did China devalue its currency or liberalize its currency market when it suddenly … Continue reading
China’s economy may not be expanding as much as we think and slower than its official data may suggest, according to a recent Bloomberg survey, which is helping to explain why policy makers in the nation have stepped up stimulus efforts and devalued the nation’s currency in a move to boost exports via a weaker yuan. According … Continue reading
Peter Schiff, the CEO of Euro Pacific Capital, is warning that there is an impending U.S. dollar collapse and economic collapse on the horizon that should be getting a lot more attention, and not China’s recent currency devaluation. In a recent interview with Alex Jones on Infowars, Schiff breaks down what he thinks will cause the up and coming … Continue reading