Submitted by Jim Quinn via The Burning Platform blog, [4]
In case you missed it, China has devalued their currency for three consecutive days. The devaluation has been just under 5% and it has caused markets around the world to implode. This is just the beginning. They plan on devaluing their currency by 10% in a desperate attempt to revive their floundering economy. What they are really doing is crushing the economies of the US, Europe and Japan as their companies have a harder time competing in world markets.
Those who don’t think the US is heavily dependent on China as a market are delusional. Check out this chart.
[5]
Without these tremendous increases in exports to China, these states would be in far worse shape than they already are. When this devaluation is complete, the companies in these states will be 10% less competitive. Their exports will decline. When exports decline, companies fire workers.
Get ready. The fireworks are just beginning. Fourth Turnings sure are entertaining.
