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Realistbear

Chinese Currency Falls Vs Dollar

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http://noir.bloomberg.com/apps/news?pid=20601087&sid=aFAg.SyWViio&pos=2

Yuan Falls Most Since December 2008 on Signs PBOC to Curb Gains
By Bloomberg News
June 22 (Bloomberg) -- China’s yuan declined the most since December 2008 on speculation the central bank will intervene to limit gains after dropping its two-year peg to the dollar.

Another cunning plan gone awry or a move to give added momentum to global deflation to offset printing effects?

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They are trying to devalue against the Euro.

The Euro region is their biggest export market and the Euro has tanked.

People mis read what they were saying. And what they said was careful.

If they are trying to devalue vs. the Euro they might find some strong market resistance:

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aOpshtW.hsVk&pos=3

Central Banks Show Euro Losing Appeal as Loonie Gains (Update1)
By Oliver "Olly" Biggadike and Sharon Smallerpoof
June 22 (Bloomberg) -- The Australian and Canadian dollars are becoming reserve currencies for central bankers seeking alternatives to deteriorating government credit quality in Europe, the U.S. and Japan.
“They’ll gain an increasing place in reserves because of diversification,” European Central Bank governing council member Christian Noyer said in a June 16 interview with Bloomberg News in Paris.

The Canadians need an overvalued Loonie like a proverbial cavity in the cranium. :(

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If they are trying to devalue vs. the Euro they might find some strong market resistance:

Nothing a major Chinese banking crisis, due to an imploding property bubble, could not resolve ;)

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http://noir.bloomberg.com/apps/news?pid=20601087&sid=aFAg.SyWViio&pos=2

Yuan Falls Most Since December 2008 on Signs PBOC to Curb Gains
By Bloomberg News
June 22 (Bloomberg) -- China’s yuan declined the most since December 2008 on speculation the central bank will intervene to limit gains after dropping its two-year peg to the dollar.

Another cunning plan gone awry or a move to give added momentum to global deflation to offset printing effects?

Look at it this way: If you are a well off person in China, where do you want to put your cash?

A lot of people go on about how doomed the West is, but we tend to have things like rule of law and honoring of contracts, and you are a lot less likely to find yourself on the wrong end of a firing squad because the local party boss decides he want a bit of your business.

It is quite common in developing countries that as soon as capital markets are opened, local capital floods out to 'safe haven' countries, much to the surprise of economists who have carefully scrubbed political and psycological factors out of their equations..

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The Chinese said 'flexibility'

The (US) meedya read 'rise'

They've given Timmy what he asked for, he can hardly grumble.

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The Chinese said 'flexibility'

The (US) meedya read 'rise'

They've given Timmy what he asked for, he can hardly grumble.

How are the US going to carry on borrowing themselves into the crapper without cheap goods from China?

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  • 138 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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