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"Stealth" Currency War Continues - China Weakens Yuan Fix For 7th Consecutive Day
The Yuan fix has now weakened for 7 consecutive days. Aside from the August devaluation, this is the biggest devaluation in the Yuan since records began in 2004. At the current level of 6.4559 per dollar, the Yuan has retraced to the level it was at when QE ended in July 2011. Chinese stocks are fading a smidge after yesterday's afternoon session "rescue" ramp.

(note - CNY chart inverted to make comparisons easier - lower is weaker CNY compared to USD)
It's good to have friends in The IMF where not a peep will be heard as the quietest currency war in the world is under way. We presume as long as US equities don't get hurt, then The Fed, Treasury, and Chuck Schumer will just ignore it (unless and until HY's collapse becomes just too painful to ignore for all those collateral chains as The Fed withdraws up to $800bn in liquidity this week).
Charts: Bloomberg
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Raise them rates, mr. yeller...lets do this.
Yellen:"You need to pull my finger first." Or Leg. Or whatever.
Whole lotta stealthin' goin' on!
Actually, I'd seriously hope that they do "something" so we can get off of this nonsensical pronouncements, followed by botched press conferences and incessant Hilsenrath under the table double secret inside information snuck out to the ever so exclusive Internet audience.
Shit's gettin' like a bad rash
Is Merkel Hitler's daughter? https://youtu.be/Sx2haIRJHeY?t=15m19s
Why do you keep asking? Did you dip your wick in the daughter?
In this corner, a welter weight, hailing from the underworld, Hell. - Mr. "Data Dependant" Yellen!
And in this corner, a heavy weight, with 1000's of years of knowledge and power, the free "always win in the end" market. LETS GET IT ON!!
This is cornball as f*ck, but:
www.youtube.com/watch?v=9BEvkVl6RJk
This scene/clip reminds me of Keynesian central bankers (as Sho'Nuff in Red), whereas Bruce Leeroy, getting dunked and beat upon, is the gold standard/free markets.
Fantastic! If I may make a suggestion:
In the RED corner is a can-Kickboxer with zero wins three losses. Weighing in at pipsqueak. Fighting! Out of the homo hipster douchebag capital of the planet, San Francisco - Janet "Moderate Growth" Yellen!
China Carefully Moving to Displace Dollar – F. William Engdahl
http://thenewsdoctors.com/china-carefully-moving-to-displace-dollar-f-william-engdahl/
Any Chicom's wanting to strengthen the Yuan will find themselves "disappeared".
In other news: China’s ICBC to open clearing bank in Russia to boost yuan-ruble trade
Then there are the Russian and Chinese versions of SWIFT (RIPS1 and CIPS2)
[1] Russian International Payment Systems (I made it up, as we're still waiting for the official name)
[2] Chinese International Payment Systems
References:
https://en.wikipedia.org/wiki/China_International_Payments_System
http://www.bankswiftcode.org/russia/
http://www.zerohedge.com/news/2015-02-18/de-dollarization-accelerates-russia-launches-swift-alternative-linking-91-entities
When we see the BRICS & Friends starting to De-Dollarize on a large scale, and use CIPS and RIPS, then you know that "Thing are getting serious".
Hopefully they have their fire dept ready. Somewhat OT but apparently Yemen is claiming to have now sank 10 Saudi ships.
http://en.farsnews.com/newstext.aspx?nn=13940923001367
The Sauds have decided to create a coalition of 34 states which includes countries such as Togo and Yemen. https://www.rt.com/news/325929-islamic-coalition-terrorism-saudi/
Saudis are getting wrecked right now in Yemen and it's totally flying under the radar:
Yemeni forces have managed to kill over 80 Saudi-led troops, including 42 Blackwater mercenaries, in a ballistic missile attack in the western Bab-el-Mandeb area.
The surface-to-surface missile also destroyed two Patriot missile systems, three Apache helicopters, more than 50 military vehicles, all belonging to the US Blackwater Worldwide security services company. The report added that two Saudi warships were damaged while fleeing the incoming Katyusha rockets that were fired spontaneously due to the missile impact.
http://www.presstv.com/Detail/2015/12/13/441621/Yemen-Saudi-Arabia-Babel...
This is HUGE.
Post it against the euro or yen...
PBOC front running the Fed interest rate hike and signalling to markets that it will not use its reserves to defend the Yuan. This will not so much as to spur exports but to curb imports and they will let the growth objective goes. While they are not omnipotent in that this can spur increase in domestic interest that is not good for its local debt loads, this however is left to be dealt with at a later date. A secondary eefect will be the slow down of capital outflows. this is going to hurt the EM economies more than China with their further export declines atop of capital outflows. Not a currency war but self defense.
PBOC front running the Fed interest rate hike and signalling to markets that it will not use its reserves to defend the Yuan. This will not so much as to spur exports but to curb imports and they will let the growth objective goes. While they are not omnipotent in that this can spur increase in domestic interest that is not good for its local debt loads, this however is left to be dealt with at a later date. A secondary eefect will be the slow down of capital outflows. this is going to hurt the EM economies more than China with their further export declines atop of capital outflows. Not a currency war but self defense.
The little Zionist Kike of a Hungarian troll sees many chemical plant accident(s) in your future!
And just like all Jews on Christmas day in Chinese restaurant in mid-town opening his fortune cookie and contemplaing his liver spotted navel with a smile celebrating when more of those ports go up in flames!!!
And I see a definite lump of coal in your future. Turn the Foam Meter back down to 11 and give thanks for the many blessings that are in your life.
And I see a definite lump of coal in your future. Turn the Foam Meter back down to 11 and give thanks for the many blessings that are in your life.
All good things come to an end Zionist Jew boy...
I'd take stock in what you just said and be very reflective of your coveting sordid past which is reaching it's final conclusion.
Won't be able to take those possession(s) with us where we're going!
All 1oz Silver coins are €12 @ EurGold
https://www.eurgold.de/silver/silver-coins/
That's equal to 3 "Oil Changes" in Athens, at 4 EUR each.
All China’s competitors have been devaluating their currency for last five years. China must devaluate vs. dollar at least 30% to return to export situation from 2010. The whole shit is about internal consumption and is exactly that: shit. Facing uncertainty and instability of markets, jobs and overall policies of the Chinese government including cracking down on corruption among former power Mafiosi causing Chinese people to save, save, save while commodity prices are falling, since their spending depends on income only, not prices, something that SSE maniacs do not understand.
So they will be no consumer economy in China anytime soon, not at least as long as they do not shopo-zobiefy them as it happened in the US. That's why global commodities are crashing, and all commodity producers sink since China tightening its belt for next few decades at least until 2+2 generation will be born and raised.
More truth on China and the US economy can be found here:
https://contrarianopinion.wordpress.com/economy-update/
Something is definately wrong. The king dollar should be weak with all the debt and the overheating printing machines, yet its killing everyone else .Asian currency wars are not going to benefit anybody .China is still not ready to stand on its own yet.