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China Joins Currency War With Surprise Devaluation, Biggest One-Day Move on Record
by Mike “Mish” Shedlock
MISH’S Global Economic Trend Analysis
Surprise Devaluation
In a move sure to heighten trade tensions with protectionists in US Congress, Surprise China Devaluation Marks Escalation of Currency War.
According to conventional wisdom, wars are easy to start and difficult to end. Similarly Beijing’s devaluation, the biggest one-day currency move since 1993, represents the latest skirmish in an emerging battle which, analysts warn, may be hard to reverse.
“This shows how desperate the government is over the state of the economy,” said Fraser Howie, a China analyst and co-author of Red Capitalism. “If they were trying, as the central bank said it was, to bring the exchange rate back into line with market expectations then they have failed miserably as the market is now just expecting further devaluation.”
Continue Reading at GlobalEconomicAnalysis.Blogspot.com…
Source: http://financialsurvivalnetwork.com/2015/08/china-joins-currency-war-with-surprise-devaluation-biggest-one-day-move-on-record/?utm_source=rss&utm_medium=rss&utm_campaign=china-joins-currency-war-with-surprise-devaluation-biggest-one-day-move-on-r
