13.8.15

Currency War

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CHINA - DEVALUATION by aangirfan

Many Chinese cannot afford to buy anything other than the basics.

Reportedly, in China: house prices have stalled, some construction projects have been suspended, some building sites are deserted and some factories have fallen silent.


To help its economy revive, China has devalued its currency.

Chinese exports to the USA and Europe will be even cheaper

This will hurt US and European manufacturers whose exports to China will now be more expensive.

dailymail

Donald trump says: "China has rebuilt itself with the money it has sucked out of the United States and the jobs that it has sucked out of the United States...

"They are doing a big cut in the yuan and that is going to be devastating for us... they are just destroying us."

There is a fear that stock markets will slide and the world economy will tip back towards recession.


Chained like a dog.

The World's economic problems can only be solved by reversing the process whereby wealth is increasingly concentrated in the pockets of the elite.

The rich elite cannot buy great quantities of such things as cars and clothes.

"A little more redistribution now might improve the quality and quantity of economic growth."

The Economist explains: How inequality hurts growth