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"Currency War By 1000 Cuts" Continues - PBOC Weakens Yuan For Longest Streak Since Lehman

Tyler Durden's picture




 

Amid warnings from Daiwa Capital Markets that policy-makers "will sacrifice Yuan stability" in order to manage the deterioration in the economy (trade and industrial production data confirming the weakness), The PBOC weakened the Yuan fix for the 8th straight day. This is the longest streak of weakness since August 2008.

 

As Bloomberg notes,

Chinese policy makers will sacrifice yuan stability as it is clear that growth is being impeded by currency being stronger than it needs to be, according to Daiwa Capital Markets.

 

PBOC will allow currency to weaken to 7.5000 per dollar by end of next year, representing a 15% drop from yesterday’s closing level of 6.3665

 

“The authorities need to stop intervening in the currency market for the purpose of making the currency stable, as a strong currency is offsetting the policy easing so far,” Kevin Lai, HK-based Chief Asia ex-Japan economist, says in interview

 

Still, any currency weakness wouldn’t be without challenges: it would increase debt burden of companies that have borrowed in foreign currency.

And sure enough...

 

  • *CHINA WEAKENS YUAN FIXING FOR 8TH DAY, LONGEST RUN SINCE 2008

 

Charts: bloomberg

 

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Wed, 11/11/2015 - 21:38 | 6779905 LetThemEatRand
LetThemEatRand's picture

Thousand cuts?  I prefer 1000 lashes from the benevolent leaders of our key ally Saudi Arabia.  Most lashes since Lehman!

Wed, 11/11/2015 - 21:44 | 6779944 THE COIN
THE COIN's picture

The Dalmation sees your 1 more cut and raises you 2 more lashes.

Wed, 11/11/2015 - 21:38 | 6779906 Kaiser Sousa
Kaiser Sousa's picture

"I'm lovin it...."

Silver will below $14 on this fantastic news tonight....

DEATH TO THE MONEYCHANGERS.

Wed, 11/11/2015 - 21:49 | 6779963 FreeShitter
FreeShitter's picture

No chicken shit warehouse explosions? Im shocked. 

Wed, 11/11/2015 - 21:41 | 6779926 nmewn
nmewn's picture

"Chinese people can now rejoice in their wage cut!" - Vice Public Security Minister Meng Qingfeng

Wed, 11/11/2015 - 21:47 | 6779956 Atomizer
Atomizer's picture

The silk road globalization experience that never work's. Gee, who can be behind this since 1913? 

Wed, 11/11/2015 - 21:53 | 6779982 Atomizer
Atomizer's picture

Just for example. Stupid policy for stupid Nobel Economic Prize Winners. 

10 Nov/Vítor Constâncio: Understanding inflation dynamics and monetary policy in a low inflation environment

Wed, 11/11/2015 - 22:02 | 6780034 Atomizer
Atomizer's picture

Phillips curve and.......

Modern Educayshun

https://m.youtube.com/watch?v=iKcWu0tsiZM



Wed, 11/11/2015 - 22:03 | 6780039 Hongcha
Hongcha's picture

Just sell gold.

Wed, 11/11/2015 - 22:04 | 6780049 Atomizer
Atomizer's picture

I love fucking with the Central Planning group. Hey fucknobs.. I've got a good inside tip for you. Hahahahahahaa 

Wed, 11/11/2015 - 22:08 | 6780065 Demdere
Demdere's picture

There is no technology to manage open, evolving, complex systems.  Like economies and societies.  They are living systems, we can cause harm much easier than improving them.  How do you improve a rain forest?  Cut down all the trees less than $10 / hour high?

https://thinkpatriot.wordpress.com/2015/11/11/dynamics-of-national-colla...

1929 to the power of Dunning-Kruger + our Israeli-Neocon national security state plust Deep State components + their propensity to double-down when challenged by failure.

https://www.rutherford.org/publications_resources/john_whiteheads_commen...

In functioning societies, elder statements who are above the fray of party and other politics identify that kind of danger.  Not a word from our professional military or spooks.  All of the suspicious deaths are among the good guys.

This isn't a failure of the Constitution, certainly not a suicide pact imposed by that document.  This is planning for a coup.  9/11 was the first step on what inevitably has to be acknowledge as a false flag every thinking person knows it to be.  Nobody rational could have thought it would hold long enough that it was not going to come back to bite them badly.  So it was planned as a multi-step operation? Nothing makes sense, many players of conflicting aims.

But 9/11 was a false flag operation, and that fact really should condition you thinking about everything.  Dangerous time, imho.

https://wordpress.com/post/82509787/4173/

Hope I am wrong, but so many things are in such flux, ends of eras are new opportunities as well as failures of the old Status Quo.

List the amazing transgressions and lies and political successes of our Israeli-Neocons over the last 30 years.  They do not lack for boldness and tend to smash their opposition.

 

Wed, 11/11/2015 - 22:34 | 6780177 hedgiex
hedgiex's picture

Yes. They cannot stabilize domestic interest rate and concurrently stabilize the RMB. RMB is what they can only influence as global traders need not obey. So what is not transparent in their long landing without massive social unrest. You have seen nothing yet on the "China Price" 

Wed, 11/11/2015 - 23:33 | 6780447 gatorengineer
gatorengineer's picture

Articles like this make me wonder... plot it versus the euro.....

Thu, 11/12/2015 - 00:17 | 6780594 Nobody For President
Nobody For President's picture

Ahhh - 'since Lehman'.

Best meme on ZH

Thu, 11/12/2015 - 03:04 | 6780924 kaboomnomic
kaboomnomic's picture

Dude, PBOC will ALWAYS try to lowered Yuan's. That's good for exports. And you're surprised about PBOC moves??

Thu, 11/12/2015 - 08:00 | 6781194 messymerry
messymerry's picture

What?  The almost 50% counterfiet exports???  Walmart (WMT, a TLA) has become a very VERY bad deal.  Their stuff does not even qualify as crap!!!

;-D   

Thu, 11/12/2015 - 10:19 | 6781590 TrustbutVerify
TrustbutVerify's picture

And yet Americans keep buying the foreign goods that are symbols of their own jobs disappearing.    

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