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marmar

(76,985 posts)
Wed Aug 12, 2015, 10:34 AM Aug 2015

Freaked-Out People’s Bank of China Devalues Yuan Again, All Heck Breaks Loose


Freaked-Out People’s Bank of China Devalues Yuan Again, All Heck Breaks Loose
by Wolf Richter • August 12, 2015


How freaked out can the People’s Bank of China be about the Chinese economy that has been growing admirably at 7% this year, according to the government?

OK, there are some quibblers who might point out that car sales in July have plunged 6.6% to a 17-month low, after having already shrunk in June, and after having trended down all year, in the largest auto market in the world with the largest auto manufacturing capacity in the world that had been growing in leaps and bounds and had pushed job creation, investment, and GDP to new heights.

US automakers have bet the farm on China. This is where growth would come from. But in July, Ford sales through its joint ventures dropped 6% year-over-year, the third monthly decline in a row, and GM’s sales through its joint ventures dropped 4%. A vicious price war has broken out. In a market that has gotten used to seeing double-digit growth!

And granted, exports and imports plunged too, and producer prices plunged, and the totally crucial property sector is wobbly, and manufacturing plants get shut down as overcapacity is running rampant, and all kinds of other things plunged or stagnated or wobbled, and now the PBOC is truly freaking out.

.....(snip).....

These devaluations, the past two and the future ones, raise all kinds of questions and concerns: Would Apple products suddenly face even stiffer price competition in China, either cutting into its profits or its sales or both? We don’t have a crystal ball either, but we suspect what the answer might be. American tech products are going to have an even rougher time in China. ......(more)

http://wolfstreet.com/2015/08/12/after-one-time-correction-freaked-out-peoples-bank-of-china-pboc-devalues-yuan-second-time-mayhem-breaks-out-currency-war/




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Freaked-Out People’s Bank of China Devalues Yuan Again, All Heck Breaks Loose (Original Post) marmar Aug 2015 OP
Breaking News: Markets of durable products saturate. DetlefK Aug 2015 #1
More and more of Everybody will buy more and more Stuff pscot Aug 2015 #2
What you are seeing is the Wellstone ruled Aug 2015 #3

DetlefK

(16,423 posts)
1. Breaking News: Markets of durable products saturate.
Wed Aug 12, 2015, 10:40 AM
Aug 2015

Everybody will buy more and more and more cars and this will never end!

pscot

(21,023 posts)
2. More and more of Everybody will buy more and more Stuff
Wed Aug 12, 2015, 10:51 AM
Aug 2015

and this will never end. That's the essence of the Capitalist Ponzi scheme Miracle.

 

Wellstone ruled

(34,661 posts)
3. What you are seeing is the
Wed Aug 12, 2015, 12:04 PM
Aug 2015

ten percent the correction the 1% ers wanted and forecast in early March. It's all about wealth transfer and Insurance against the Pauper Class. These thieves are dumping Commodities and ETF's for more traditional stocks and bonds. If you have been listening and reading the Business blogs,you would have seen this coming. When the Rockerfeller Family dumped their interest in Oil,Coal,and Gas,you knew something was in the works. Since then,tons of the old line Families have dumped their commodities knowing first hand China was a shame.

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