China to blame Yellen along with Japan & Australia

 

Well – the deflation transferred from Japan to Australia and now China undertakes a rather large devaluation.

Actually biggest devaluation since August 2015.

 

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To think I was only discussing the over-valuation of the Yuan this afternoon.

In real terms – this devaluation is insignificant – and will have no impact on India and Vietnam – nor Malaysia.

I expect that they will try and find the right price over time – the problem is though it is still overvalued. This is my opinion – not that of the IMF who think that it was at a fair price – and supported China when they were ‘named and shamed’ by the U.S. Treasury recently.

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Now one must wonder what the U.S. Treasury (Jack Lew) and the Fed (Janet Yellen) views on these actions are – basically China said ‘F… You’.

Are they themselves aware that this mini currency war is about their procrastinations with the interest rates?

Doubt it – their respective heads are firmly planted where the sun don’t shine.

 

 

  1. http://www.wsj.com/articles/imf-to-brighten-view-of-chinas-yuan-1430697814
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