Sovereign Man’s Tim Staermose posted an interesting article about China and how no one has been paying attention to the recent downward trends of the Yuan. Here is the highlight in two paragraphs …
Via Business Insider:
Judging by the poor economic numbers coming out of China, the day of reckoning is drawing ever closer. One alarming indicator is that the Chinese renminbi (yuan) has traded down to the lower limit of its strictly controlled trading band for SEVEN TRADING SESSIONS IN A ROW.
This suggests that there is more money leaving China than being earned from overseas trade or invested there. The exchange rate may be only one simple indicator, but it’s a great barometer for what is going on: China is not going to be the savior of the global economy, but rather another casualty.