China 'Devalues' Yuan To Weakest Since Breaking The Peg In 2010

Tyler Durden's picture

With offshore Yuan tumbling in recent days - echoing the collapse in US Treasury bond prices - the spread to the onshore fix appears to have forced the PBOC's hand. With a 200 pip cut in the CNY fix tonight, China has all but erased any strength in the Renminbi against the USD since it broke the peg ("enabled more flexibility") in June 2010.



Given the wakness in the Reniminbi basket, one could argue that the Yuan could be sold against the USD considerably more to catch down to the pressure that other major basket currencies have been under...


With US Treasury market closed tomorrow, one wonders where China's wrath will fall...

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remain calm's picture

Go ahead, devalue your currency, Trump will just tax your imports more. Fuck Off China man. 

NoDebt's picture

If China's such hot shit how come every time some Chinaman scrapes some semi-serious money together the first thing they do is send their family to the US and push as much of their money as possible over, too?

Capital flight warp engines engage, Mr. Sulu.  Warp factor 9.


tmosley's picture

Backwards Communist economists reccomend self-destructive monetary policy, news at 11.

Heavy's picture

Torch your own money printing shithouse before torching someone else's, its like glass houses...but with more shit and printing.

FreedomGuy's picture

Because they live in a command-autocratic economy. The rules can change at any time and there are no fixed property rights. Also, they may understand the weak currency game which becomes a large tax on their savings and purchasing power. Better to own an empty home in Vancouver or Malibu that preserves or even grows wealth.

The USSA was going down the same path.

NoDebt's picture

It was sort of a rhetorical question.

Arnold's picture

Da Chinks.

I know their economy is not random wandering, but it does spend a lot of time on anti alzheimers medications.

Antifaschistische's picture

I have spent a LOT of time in China, and I have very close ties to many Chinese here in the US.

Answer: "The grass is always greener on the other side of the hill" phenomena.

Chinese people are programmed.  

a) Many of them think America is the Promiseland.  You and I may not feel that way but that doesn't matter.  They do.

b) They believe America is THE PLACE to buy a home, because you can really really own it. (so they think).

I argue with them on both of these doesn't matter.  They believe "homes" will never ever go down in price.  It's a no lose-only win situation (so they believe).  They also have the "can't lose" mentality with property in China...thats why price is irrelevant to them....if they have, or can borrow the money, they feel they can't lose.

time will prove them right or wrong.

Wild Theories's picture

living standards and comfort is also a thing, what with the population density in Asia in general

Pliskin's picture

It's the corrupt politicians and businessmen/bankers that are moving their money out, your average Joe Chinaman no more 'moves' his/her money into the U.S. than your average American has a Swiss or Cayman Island account. 

In China 'economic crimes' are punishable by death.

NoDebt's picture

I don't believe that only the corrupt are moving their money out of China.  Unless you are saying that the only way to make money in China is corruption (OK, to be honest, I'm actually open to that line of argument, I just haven't heard it argued openly).


sinbad2's picture

The idea is that when the US economy collapses, the US market as we know it today when cease to exist.

The Chinese plan is a Eurasian market, which will dominate the global economy. The US will be as importantant economically as Australia.

Raffie's picture

Soon they will show all the gold they own and back their money.



SomethingSomethingDarkSide's picture

Mother. Fucking. Never gonna happen.

Supafly's picture

They are hedging debt repudiation.  Any smart businessman will look our books and come to the conclusion that, given no tangible asset backing, it's easily renegotiated.  Game over for all the treasury buyers.

JackT's picture

Where, or what, is their equivalent to the US Fort Knox?

sinbad2's picture

I don't think China has an empty vault inside a military base.


rocmon's picture

Yes, think you are right... they will also team with Russia to seal the deal.

max2205's picture

Sick of govt "workers" getting 8 more holidays off than I do 

kliguy38's picture

Remain calm and don't buy Gold

Stormtrooper's picture

Can't help but to buy.  I'm on the automatic payroll deduction plan.

Francis Marx's picture

Aren't they taking the Trump win a little to far with their monitary reactions?

NoDebt's picture

China's got their own freaking problems, no matter who's in the WH.  

Atomizer's picture

Who cares, watch China inventory gas light on no one buying cheap shit. 

Extreme Chinese Fire Drill - YouTube

wisehiney's picture

Very deflationary.

Ten year yield back under 2% in short order.

Atomizer's picture

I can getaway making fun of central banking planning in zip lip world. Geeze Walley, how come you can make fun of China and we are called a rasist. 

I kick American squatters out of my rental homes if they don't pay $3,000- $4500/ month. Show me your favorite squat position. 

Culture Shock - Toilets in China - YouTube

RSDallas's picture

Is Hugh Hendry smiling yet?

Yen Cross's picture

  Gee, I wonder who's rehypothecating all that copper?

jldpc's picture

Good question! With copper strongly rising lately, despite some obvious softness in the economies of the DM & the EM, can it not be just or mostly speculators (versus end users), getting hyped up by talk and speculation on infrastructural development in the USA? Because really who out there other than USA has the desire and means to re-re-modernize with govenrment rates risng now? Or do all of the Lemmings go off the cliff together?

Of course with the Yuan dropping like a rock lately, why noy not go long copper, at least, for a while anyway, until the fever breaks, and the speculators are crushed as usaul. Think Gartman. Can't wait for him to go long Copper.

Nobodys Home's picture

If you were short copper within the last 2 weeks it would have been wise, Mr. Gartman is a very nice, caring, stupid person. He trys.

Nobodys Home's picture

Me. I just love old pennies...I have a Feutchwanger cent

Nobodys Home's picture


yngso's picture

We should all always use the official three-letter abbreviation that names each currency. Some people pronounce yuan won, but that's the S. Korean currency!

Dark Daze's picture
Dark Daze (not verified) Nov 11, 2016 8:24 AM

You fucking asshole americans have always thought you were the toughest shits on the block. Well, wait till China gets through with you. And your fucking idiot golden boy, well, will he ever be surprised when he has to deal with 50 million chinese invading America. You're going to love their re-education camps, if you even make it there. Sure, you're going to defeat a country that can raise 2,500 armies and blow you to bits with hypersonic nukes.

It's always been the same with you. You pretend to give a fuck about building a country with opportunity for 'all'. Then it turns out that no, it's not 'all', it's only for you and the cocksuckers who think like you; the most truly worthless human beings on the planet. There is zero difference between you and Hitlery supporters. You're all exactly the same.

The next shoe that is going to drop is when Japan, Germany, Canada, Switzerland and others remove themselves as Primary Dealers and you're debt sales collapse, like they already are, except in what's coming you will see interest rates going up by 1% a day, and there is no one left in your country who can buy that debt, and the elite sure as hell aren't going to come to your rescue, they want you destroyed. Laws are pending in legislatures. Your "elite" thought they were smart enough to screw China, and they lost, big time, that is why you are bankrupt now.

And this time, DON'T expect the Canadian Corps to come to your fucking rescue. We will let you die. And die you will, by the millions.

I hope they turn you into chow mein, it's the least you greedy, worthless, arrogant fuckers deserve.

Econogeek's picture

Good heavens, Daze.  I teach yoga, and I'm serious -- take several deep breaths, close your eyes, go within, and RELAX.

Canada is a good and great country.  There is a lot less out there to fear than you believe.