Call it passive-aggressive currency war.
While one of Trump’s most sincere desires, both during his campaign, and ideologically from his life prior to politics, has been to publicly declare China a currency manipulator – something he promised he would do on day one of his administration – and crack down on the “undervalued” Yuan (even though over the past 18 months, China has been scrambling to prevent further devaluation of the Yuan in light of over $1 trillion in capital outflows in recent years), lately Trump appears to have gotten second thoughts, and after backing off on his intent to negotiate the “One China” policy, now Trump is looking for a way out of engaging China directly in currency war. Continue reading
Analysts pointed out several factors that have driven the yuan down. One of the most important among them is strengthening the dollar on expectations of a referendum of Britain leaving the European Union. The vote will take place on June 23.
Some analysts see the recent step to devaluate the yuan as part of its correction ahead of the possible interest rate hike by the US Federal Reserve.
Equities suffer their worst start to a calendar year since the bursting of the dotcom bubble in 2000 as fears over China’s exchange rate grow
Global stocks markets have seen $2.5 trillion wiped off their value in just four trading days, the worst start to a calendar year since the aftermath of the dotcom crash in 2000.
Stocks suffered another tumultuous day of trading gripped by renewed fears that the world’s second largest economy was engineering a devaluation of its currency.
For many years now, it’s been clear that China would soon be pulling the strings in the U.S. financial system.
In 2015, the American people owe the Chinese government nearly $1.5 trillion.
We are stuck with an enormous debt we can never realistically repay… And the Chinese are trapped with an outstanding loan they can neither get rid of, nor hope to collect. So the Chinese government is now taking a secret and somewhat radical approach.
China has recently put into place a covert plan to get back as much of its money as possible – by extracting colossal sums from both the United States government and ordinary citizens, like you and me. Continue reading
Peter Schiff, economist, best-selling author, and CEO of Euro Pacific Capital, believes a U.S. dollar crisis is underway.
“The dollar is very overvalued…and the dollar is a bubble,” he told Newsmax Prime on Aug. 11. “This dollar bubble is going to burst.”
Indeed, less than two weeks after Schiff’s interview, the U.S. dollar index, which measures the greenback against a basket of currencies, has retreated 2.1% to 93.063 for a fourth-straight loss.
And U.S. markets are getting rocked with a major sell-off – last week finished out as the worst for stocks in four years… Continue reading
(NaturalNews) Americans and people all over the world are still traumatized from the 2007 and 2008 crash that altered world economies. In many ways, we are still recovering from that crisis and countless people and regions worldwide are still recovering. Think Greece, and Brazil; these countries have never fully recovered. So when the headlines today are sounding the alarm about U.S. stock markets taking a plunge, people everywhere are bracing themselves for the worst possible scenario. Can we really weather another 2008 crash? (Article republished from Collapse.news.) Continue reading
Echoes of 1934 are thundering with increasing intensity.
In 1934, United States President Franklin Delano Roosevelt outlawed the private ownership of gold. People who refused to turn their gold over to the government went to jail. With the same presidential order Roosevelt shocked the world by devaluing the dollar. The cost for an ounce of gold, previously set at $20.67, henceforth cost $35.
President Roosevelt told the country that it was a radical effort to stimulate America’s economy. A cheaper dollar would make America’s exports less expensive and help American companies sell more products to the rest of the world, he said. More money would flow into America, and more jobs would be created.
It did those things. And it also marched the world another giant step closer to war.
Confusion hits the markets as stocks, currencies and commodities fall sharply across the region as investors fear a stalling China economy and possible currency war despite Beijing’s assurances. We warned that this devaluation was NOT A FLUKE, and far too many people just misrepresent what is truly going on within the world economy so it comes as no surprise they missed this one. Continue reading
In other words: China has officially entered the currency wars.
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.
The central bank cut its daily reference rate by 1.9 percent, triggering the yuan’s biggest one-day drop since China unified official and market exchange rates in January 1994. The People’s Bank of China called the change a one-time adjustment and said it will strengthen the market’s ability to determine the daily fixing.
Chinese authorities had been propping up the yuan to deter capital outflows, protect foreign-currency borrowers and make a case for official reserve status at the International Monetary Fund. Tuesday’s announcement suggests policy makers are now placing a greater emphasis on efforts to combat the deepest economic slowdown since 1990 and reduce the government’s grip on the financial system. Continue reading
This is how the Fourth Reich is coming to be. If you’re still looking for Nazis, you’re 70 years too late. The German hegemony is conquering through other means.
“You have not anchored Germany to Europe,… You have anchored Europe to a newly dominant, unified Germany. In the end, my friends, you’ll find it will not work.“
– Margaret Thatcher
How right she was.
This video below may help one to understand some of the seemingly obtuse demands from the Troika with regard to Greece.
The video is a bit dated, but the debt scheme it describes remains largely unchanged. The primary development has been the creation of an experiment called the European Union and the character of the targets. One might also look to the wars of ‘preventative intervention’ and ‘colour revolutions’ that raise up puppet regimes for examples of more contemporary economic spoliation.
Russia isn’t alone in thinking what happens to those who attempt to abandon the U.S. Dollar as a means of exchange, which was likely the real reason for both wars in Iraq, plus the toppling of Libya, Egypt, so on and so forth.
It’s also highly interesting to note that this falls in line with what was described by retired General Wesley Clark as the U.S. plan to overturn seven countries in five years (see also HERE) in order to keep the next superpower from rising. Although that timeline may not have been 100% exact, schedules do change to fit needs in an ever-changing environment, countries have without a doubt been overturned and destroyed in a bid to remain on top.
The fight to undermine and dethrone the United States by Russia (and China) has been going on for quite some time and quite successfully under the radar of ordinary citizens.
An article by Mises Institute contributor Marcia Christoff-Kurapovna believes that now is the ideal time for Russia to introduce a gold-backed ruble.
Mises Institute contributor Marcia Christoff-Kurapovna believes that Russia may be in the process of planning for the introduction of a gold-based currency, and would be better off for it.
“Though a far-fetched idea at first glance, many factors suggest that remonetization in gold may be a logical next step for Moscow,” Christoff-Kurapovna notes in an analytical article published Friday on the libertarian think tank’s website. Continue reading
Following the biggest rout to the Ruble in ages, Russia – unlike Mario Draghi – instead of talking the talk decided to walk the bazooka walk and shocked all those long the USDRUB by unleashing an emergency rate hike (at 1 am in the morning) from the recently raised interest rate of 10.50% to… hold on to your hats… 17.00%, a 650 bps increase! Continue reading
The CBR also says that the current ruble devaluation creates risks for financial stability
MOSCOW, December 4. /TASS/. The Central Bank of Russia (CBR) said it was ready to make foreign currency interventions without limits in amounts, as the current ruble rate has deviated considerably from fundamentally reasonable values.
The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.
“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank. “The solution to this is to replace the national currency with a global currency.” Continue reading
Turkey’s efforts to pull the lira off record lows on Monday are likely to be emulated across emerging markets as central banks fight to avert an exodus of foreign capital driven by the impending turn in US policy.
It’s all a far cry from a year or so ago, when emerging market exporters were battling rising exchange rates and Brazil was accusing Western policymakers of waging currency wars by flooding the world with cheap money. Continue reading