China allows the Yuan to appreciate: And so it begins!

In my humble opinion, China allowing the yuan to appreciate is the impetus needed for the Federal Reserve to begin to raise interest rates that will lead to the eventual hyperinflationary currency spiral along with the deflationary credit/wages spiral! This will not be something that just "spontaneously" happens, it will be a gradual progression of the yuan appreciating and the Fed Reserve raising interest rates. However, the breaking point will be sudden and anything but gradual. (what signifies this breaking point is up for debate and open for speculation)

With the culmination of these events a Hobbian view of human nature, "dog eat dog" survival of the fittest mentality comes to mind! In short, it will be mankind at its ugliest! I do believe there will be much good that comes from this and many good-hearted people will shine during this period; however, the severity of this economic armageddon will trump any noble efforts in the short term. The long term outlook is too hard to predict due to the amount of variables and factors associated with this economic calamity.

Stocks Soar As China Finally Gives In To Demands For a Stronger Currency

Posted Jun 21, 2010 10:15am EDT by Peter Gorenstein in Investing, Banking, China

Stock markets around the world are starting the week on a bullish note following China’s decision to allow its currency to appreciate against the dollar.

A stronger yuan means higher prices for Chinese exports – the base of their economy - but more competitive prices for the rest of the world’s goods. China has often been criticized for keeping their currency artificially low, making for unfair competition. Domestically, a stronger yuan gives the Chinese more purchasing power and lowers the risk of inflation, an easy way for Beijing to appease their growing middle class.

This is the first time China is allowing its currency to float since the financial crisis in 2008. Prior to that, China let the yuan to rise by about 20% beginning in 2005. Don't expect a jump like that this time, China is controlling the situation tightly and will continue to limit the currency to a 0.5% daily trading range. What's different is China's sudden willingness to allow movement to the outer edge of the band: On Monday, the yuan rose 0.42% vs. the dollar, the biggest one-day move since July 2005, according to Bloomberg.

In the end, this move is largely symbolic, as Aaron and Henry point out in the accompanying clip. With the upcoming G20 meeting, the announcement illustrates China’s willingness to play their part in helping to rebalance the global economy -- at least symbolically.

Views: 49

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

MAC posted a video

TRUMP ADVOCATING FOR PEACE, CABINET PICKS ADVOCATE WAR

The Trends Journal is a weekly magazine analyzing global current events forming future trends. To access our premium content, subscribe to the Trends Journal...
13 hours ago
Doc Vega posted a blog post

When Will the True Reparations Be Awarded?

Americans have weathered the worst storm perhaps in American history from an intentionally…See More
22 hours ago
MAC posted videos
Tuesday
tjdavis posted photos
Tuesday
Doc Vega posted photos
Monday
Doc Vega posted a blog post

Veteran’s Day a Time That Should Be Honored

 At a time in our confusing and idiotic history when a Democrat can’t define a woman when being…See More
Monday
Michael A. Pinson posted a photo
Monday
cheeki kea commented on tjdavis's blog post Mountain Miracle
"Thumbs up to this awesome school. Isn't it amazing that some of the greatest teachers are to…"
Sunday
cheeki kea commented on cheeki kea's photo
Sunday
cheeki kea commented on Doc Vega's blog post This is Incredible! Trump is Already releasing Plans to Dismantle the Deep State and Purge the Corrupt Players
"Oh wow he is not wasting any time. May the power of the words he just spoke resonate across America…"
Sunday
tjdavis favorited cheeki kea's video
Sunday
tjdavis favorited rlionhearted_3's photo
Sunday
tjdavis posted a blog post
Sunday
Doc Vega's 4 blog posts were featured
Saturday
cheeki kea's 2 blog posts were featured
Saturday
Doc Vega commented on tjdavis's blog post Mountain Miracle
"A creative way to get hands on participation with students and the community."
Saturday
Doc Vega favorited tjdavis's blog post Mountain Miracle
Saturday
Doc Vega posted a blog post

The Perfect Lies

The Perfect Lies Time is like an ocean with its secrets running deepLike all the lovers you’ve…See More
Saturday
tjdavis posted blog posts
Saturday
tjdavis posted a blog post
Nov 8

© 2024   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted