The Shanghai Accord in its simplest form is a weaker dollar. It was a way for China to cheapen their currency without breaking the peg to the US dollar.
China’s authorities see gaming as just another conduit for illegal capital flows. Why Crown Casino in particular was targeted is a mystery.
The IMF will hold its annual meeting, to consider additional steps to expand the role of SDRs and make China an integral part of the new world money order.
The weak US economy and the weak US dollar policy resulting from the Shanghai Accord meant that the Fed was unable to raise interest rates.
The recent stimulus-led growth spike has simply papered over the cracks that are in China’s financial system.
The essence of the Shanghai Accord. China does nothing but gets a major devaluation in the currency wars, and no one notices because CNY/USD is steady.
Yesterday the gold price fell heavily. Over the past month or so, gold has traded much more like a currency and much less like a commodity.
You know you live in a strange time when a shrinking economy and a weaker currency causes a 7% surge in a stock market. But this is Japan we’re talking about.
Once the great engine of global growth, China becomes the great force behind global deflation.
Once you see a country trying to achieve the Impossible Trinity, you can be sure their system will break down one way or another.
If China’s credit boom turns to bust then it will bust Australia’s housing market too. The initial signs are already here.
While China and its slowing economy dominate the headlines, for me the real issue is the growing level of social exclusion in the world.
One of China’s only ‘solutions’ is to weaken the currency. But the yuan is still doing better than many of its competitors.
Sharemarkets haven’t so much hit the ground running, as they’ve run into the ground. ASX shares have plunged for five straight sessions. On Thursday alone, the ASX200 lost 2.2%. The All Ords finished the day even lower, down 2.1%.
If the yen and gold breach the highs of 2015 (made just after the prior yuan devaluation) then it’s a sign of increasing global risk aversion.