Friday, June 24, 2016

Albert Edwards: Focus On China’s 
Stealth Currency Devaluation
Societe Generale’s outspoken analyst Albert Edwards sees a major crisis in the world economy, but not stemming from the over-hyped Brexit vote .. Edwards is worried about the devaluation of the Chinese currency .. "In a current environment where central banks and governments have failed to generate a strong enough economic recovery to normalize interest rates amid persistent deflationary pressures, one would have thought a substantial decline in one’s currency would be welcomed for that is one way to inject a modicum of inflation back into the economic system .. Our attention has been diverted .. China has embarked on a stealth devaluation of the renminbi" as the new trade-weighted currency basket has fallen 10% prior to its initial August 2015 devaluation .. It is China that needs to be monitored, Edwards says. The Brexit is eye candy for the mainstream.
LINK HERE to the article

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