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Deflation? China Drops a Bomb on Markets, Devalues Yuan - the Currency War Begins!
08-11-2015, 12:48 PM #1
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,572 Threads:1,443 Joined:Feb 2011
China devalued the yuan by the most in two decades, a move that rippled through global markets as policy makers stepped up efforts to support exporters and boost the role of market pricing in Asia’s largest economy.
[...]
“It looks like this is the end of the fixing as we know it,” said Khoon Goh, a Singapore-based strategist at Australia & New Zealand Banking Group Ltd. “The one-off devaluation of the fix and allowing more market-based determination takes us into a new currency regime.”
[...]
The devaluation jolted global markets, with the currencies of South Korea, Australia and Singapore falling more than 1 percent
Read more: bloomberg.com

The lowdown is... this policy move is a reaction on China's part to a serious decrease of Chinese exports, and, overshadowing that is the rising risk of deflation.
Deflation tends to have a nasty little side effect - increased unemployment as a lower level of demand in the economy can lead to an economic depression. 13.gif
We may not have to wait till September for doom.jpg kids... could come today. coffeetime.gif

wonder.gif
08-11-2015, 01:40 PM #2
Octo Mother Superior
Posts:43,356 Threads:1,482 Joined:Feb 2011
We shall see 13.gif
08-11-2015, 02:04 PM #3
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,572 Threads:1,443 Joined:Feb 2011
Could get interesting when the US markets open... the Deutsche Borse DAX index is friggin' tanking at a loss of -1.92% so far for the day. reading.gif

http://money.cnn.com/data/world_markets/dax/

wonder.gif
08-11-2015, 04:52 PM #4
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,572 Threads:1,443 Joined:Feb 2011
Dow down 0.90% looks like a cliff on the chart

wonder.gif
Anonymous Kritter Show this Post
08-11-2015, 07:25 PM #5
Anonymous Kritter Incognito Anonymous
 
08-12-2015, 10:56 AM #6
Octo Mother Superior
Posts:43,356 Threads:1,482 Joined:Feb 2011
Quote: Chinese's surprise move to devalue the yuan, a looming Federal Reserve interest rate hike and weakening economic momentum in the region have created a perfect storm for Asian currencies, say analysts, who warn investors to brace for an extended period of volatility ahead.

Regional currencies suffered a second day of heavy losses on Wednesday as the People's Bank of China (PBoC) set its daily midpoint reference rate even weaker than Tuesday's devaluation, rekindling concerns around the health of the world's second largest economy.

http://www.cnbc.com/2015/08/12/asian-cur...-come.html

Lot of red charts again today.
08-12-2015, 09:41 PM #7
JayRodney ⓐⓛⓘⓔⓝ
Posts:31,572 Threads:1,443 Joined:Feb 2011
U.S. stock markets fell triple digits also for a second day in a row. By mid morning the Dow Jones industrial average was down 240 points.

Major markets across Asia and Europe also recorded losses of between 1% and 3%. http://money.cnn.com/2015/08/12/investin...index.html

popcorn2.gif

wonder.gif
08-12-2015, 10:44 PM #8
Octo Mother Superior
Posts:43,356 Threads:1,482 Joined:Feb 2011
It ended up in the green at teh end. All is well batboy.jpg
08-13-2015, 01:24 AM #9
Shadow Mrs. Buckwheat
Posts:12,775 Threads:1,181 Joined:Feb 2011
It's going to be the derivatives bomb






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