Renminbi

Currency War Resumes - China Devalues Yuan To 5-Year Lows

After a brief haitus from the ongoing currency wars, China fired another salvo at The Fed tonight by devaluing the Yuan fix to 6.5693 - its weakest against the USD since March 2011. After eight days higher in a row for The USD Index, it seems PBOC has turned its currency liberalization plan off, stabilizing the broad Renminbi basket (which has been steadly devalued) and turning its attention to devaluing against the USD. Having unleashed turmoil in August (pre-Sept FOMC) and January (post Dec rate-hike), it appears the rising rate-hike probabilities jawboned by The Fed are decidedly disagreeable to "authoritative persons" in China.

The Destabilizing Consequences Of Globalization

This globalization of price - for goods, services, credit and currencies - continually creates imbalances that fuel a perpetual instability that gradually impoverishes every sector other than global capital, which being mobile, can exploit the imbalances for its own profit. Who benefits over the longer term from the permanent instability and boom-and-bust cycles of this arrangement? Only those close to the credit spigots of central banks.

World's Most Bearish Hedge Fund Manager: "I Think Something Has Changed"

"The message that I am getting from the market, the “something” that has changed is that the US dollar is no longer a strong currency. Typically the US dollar falls when its economic cycle begins to roll over. Many of the indicators that I look at show the US is either in or heading for recession."

"We Expect A Sizeable Sell-Off" - One Hedge Fund's Four Mega-Bearish Trades

From our friends at Fasanara Capital we get their latest contrarian - and very bearish - Investment Outlook, which can be summarized as follows: "Reflation Phase To Be Temporary, More Downside Ahead", and which also contains four key conviction trade ideas over the next 12 months. "The narrative of reflation is today dominant and can continue to propel markets for a while longer. But as we know the narrative changes fast, and when it does we can expect a quick re-pricing. As we re-assess the validity of the underlying risks, we expect a shift in narrative in the few months ahead and a sizeable sell-off."

China Threatens Its Economists And Analysts To Only Write Bullish Reports, Or Else

While in the US and the rest of the free world, anyone who holds a less than bullish view of things is simply marginalized as a conspiracy theorist, ridiculed by establishment economists and pundits, is the recipient of mainstream media hit pieces, or denigrated by the president as "peddling fiction", China has decided to take a more blunt approach: "securities regulators, media censors and other government officials have issued verbal warnings to commentators whose public remarks on the economy are out of step with the government’s upbeat statements."

Was The Fed Just Given The Launch Codes?

In light of what has taken place right before, during, and since The Fed's "emergency meetings" and Obama's chit-chat with Yellen; along with what has recently been released for public consumption (and especially by other governments and officials) capped off with the sudden declaration via Treasury of "currency manipulation warnings" - Is it really that much of a stretch to think that just one wrong move whether intentional or not – can set everything we’ve come to know as “business” into complete and utter disarray? If not worse? As in much worse?

These Five Trends In China Will Change The Gold Market

The gold market will soon be very different than from what we see today - largely due to the current developments in China. China’s influence will impact not just gold investors but everyone who has a vested interest in the global economy, stock markets, and the US dollar. After all, China will be a dominant force in all, as most analysts project. Here are the five trends in China that will change the gold market forever...

IIF Ruins The Party, Predicts Another $420 Billion In Chinese Capital Outflows This Year

According to the latest Institute of International Finance forecast, and in validation of Kyle Bass' strong conviction that China is about to suffer a major 15%+ devaluation, China's capital outflow headaches may be only just starting. According to the IIF's latest report released today, global investors are expected to pull $538 billion out of China's slowing economy in 2016, which means another $420 billion after the $118 billion that has already been withdrawn in Q1.

"China Yuan Gold Fix Is Part Of A Planned Shift From Dollar": China's Bocom

China's shift to an official local-currency-based gold fixing is "the culmination of a two-year plan to move away from a US-centric monetary system," according to Bocom strategist Hao Hong. In an insightfully honest Bloomberg TV interview, Hong admits that "by trading physical gold in renminbi, China is slowly chipping away at the dominance of US dollars." Gold, silver, and petroleum "are the three USD-based commodites that China wants most control of" according to Hong but "gold in particular is one of the commodities that China is hoarding very hard."