2015-08-12 Cold War 2.0 - the currency wars...
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Some say that a nation that has no control of its currency is no longer sovereign. By such measure, one must doubt US sovereignty today, and the Euro block nations clearly gave up sovereignty to Brussels, as most clearly demonstrated in the case of Greece.
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Global Markets Turmoil After China Extends Currency War To 2nd Day - Devalues Yuan To 4 Year Lows
Despite claiming yesterday's devaluation was a "one-off", The PBOC has devalued the Yuan Fix dramatically for the 2nd day in a row - now 22 handles weaker than Monday's Fix. Offshore Yuan is trading at 4 year lows against the USD. The carnage from this dramatic shift is just beginning as global equity markets (US futures to China cash) are tumbling, US Treasury bond yields are crashing, gold is up, China credit risk is at 2 year highs, and China implied vol has exploded to 4 year highs. Ironically, China's government mouthpeiece Xinhua explains "China is not waging a currency war; merely fixing a discrepancy."
============================
Some say that a nation that has no control of its currency is no longer sovereign. By such measure, one must doubt US sovereignty today, and the Euro block nations clearly gave up sovereignty to Brussels, as most clearly demonstrated in the case of Greece.
____
Global Markets Turmoil After China Extends Currency War To 2nd Day - Devalues Yuan To 4 Year Lows
Despite claiming yesterday's devaluation was a "one-off", The PBOC has devalued the Yuan Fix dramatically for the 2nd day in a row - now 22 handles weaker than Monday's Fix. Offshore Yuan is trading at 4 year lows against the USD. The carnage from this dramatic shift is just beginning as global equity markets (US futures to China cash) are tumbling, US Treasury bond yields are crashing, gold is up, China credit risk is at 2 year highs, and China implied vol has exploded to 4 year highs. Ironically, China's government mouthpeiece Xinhua explains "China is not waging a currency war; merely fixing a discrepancy."
Chinese
stocks opened lower, extending yesterday's losses, after The PBOC
weakened its Yuan FIX dramatically for the 2nd consecutive day (from
6.1162...
zerohedge.com
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