August 13, 2015 – p.m.

Shocking Prediction About China Collapse, Gold Stockpile, Came True

China has devalued currency now for second time in two days — a clear act of desperation for Beijing.

Reuters ominously headlined that China’s “devaluation had sparked fears of a global currency war and accusations that Beijing was unfairly supporting its exporters.”

Global markets are trembling at what the Chinese are doing.

Not everybody is surprised. The Financial Intelligence Report has been warning of this happening for some time.

In fact, it was inevitable.

Some time ago we first publicized the former CIA adviser whose book was warning investors of China’s coming currency meltdown. He said it would trigger a global currency war.

More about this CIA adviser in a minute.

Savvy investors know what the grave implications of this devaluation are for the global economy.

First, it underscores what some top experts have been warning — including our Braintrust at the Financial Intelligence Report:

China’s speculative bubble is about to burst.

Earlier this summer, within a matter of days over $3 trillion was wiped off the Chinese stock markets.

This was a bigger meltdown than the NASDAQ collapse when the dotcom bubble burst in 1999 and 2000!

At the time we warned that these were the first major tremors of a much larger earthquake.

The devaluation is another indicator of massive problems ahead — for China and the world.

Wise investors know the implications of China’s actions:

First, by lowering the value of their own currency in past days, Beijing is admitting to the world that the “hype” of the China growth story has been nothing more than a Potemkin Village.

Second, the monetary devaluation proves that China’s economy is in dire straits, much more serious than has been admitted.

Their factories are slowing down and their new, gleaming cities remain uninhabited — they are desperate to boost exports!

Third, China’s action will cause a global currency war.

The only way countries can protect their own exports from China’s unilateral devaluation is by devaluing their own currencies.

This will spark a daisy-wheel effect, leading to more inflation, more economic stagnation, and total currency disruption.

The amazing thing is that China’s actions were predicted in a best-selling book by James Rickards called “Currency Wars: The Making of the Next Global Crisis.”

Rickards, a former Pentagon and CIA adviser who probed the implications of the 9/11 calamity on the U.S. economy, has argued that the 2007-2008 crisis will look like child’s play compared to the coming global currency meltdown.

In “Currency Wars,” Rickards argues that currency wars have happened before, twice in the last century alone, and they always end badly.

Time and again, paper currencies have collapsed, assets have been frozen, gold has been confiscated, and capital controls have been imposed.

He says the next crash is overdue.

Recent headlines about the debasement of the dollar, bailouts in Greece and Ireland, and the Chinese devaluation are all indicators of the growing threat to economic stability.

Amazingly, Rickards, when he first published his book, revealed a deep suspicion he had about China.

He said China was secretly stockpiling gold. He had no direct proof that they were, he simply put together the disparate intelligence that indicated China was hoarding gold.

Rickards argued that China realized a major devaluation globally would take place, and they were going to protect themselves by stockpiling gold.

Well, just last month, the Chinese Central bank revealed for the first time that since 2009 it had indeed secretly stockpiled gold and increased their gold reserves in the past three years by 57 percent!

It is important to remember that these numbers are what China admits to — and that experts believe they have stockpiled much, much more gold.

They knew a currency meltdown was in the works — and they would switch the ignition on!

Rickards says the U.S. also knows what is coming and has taken the wrong approach.

The Federal Reserve has engaged in the greatest gamble in the history of finance, a sustained effort to stimulate the economy by printing money on a trillion-dollar scale.

The Financial Intelligence Report, like Rickards, has been warning of the coming currency meltdown.

The Financial Intelligence Report gave clear warnings to investors starting in 2006 about the impending liquidity crisis and subprime collapse.

Again, the Financial Intelligence Report predicted the market come back after the 2007-08 collapse.

And now the Financial Intelligence Report is warning investors that the market bull is over.

China is the biggest canary in the mineshaft ever. That canary is now dying.

The Financial Intelligence Report has an impressive track record of not only predicting macro-economic trends, but of helping navigating investors through these murky waters.

Since inception, the Financial Intelligence Report’s model portfolio is up 121% over the S&P for the same period.

Billionaire investor Jim Rogers, the Wall Street legend who co-founded the Quantum Fund, says he turns to the Financial Intelligence Report each month to get real information you just won’t find anywhere else.

Rogers recently told the Financial Intelligence Report that he sees a major stock market crash coming, a “correction” he says will be the largest value drop “ever recorded in human history.”

August 13, 2015 a.m.

Chinese yuan: Everything depends on what happens next.

Nils Pratley

People’s Bank of China described move as a ‘one-off’ but if Beijing seeks to boost imports through devaluation, it will be a painful process.

11 August 2015 –  Last modified on Tuesday 11 August 2015

China’s weakening of the yuan by 1.9% is an event that, in a year’s time, will be seen either as an irrelevance or a major turning point for the global economy. Everything depends on what happens next. If the tweak heralds the start of a proper devaluation to boost exports, the world economy will have to adjust to a new China. The process would be painful.

China devalues yuan by 2% to boost flagging economy!

The “nothing to worry about” argument dominated on Tuesday. The People’s Bank of China described the move as a “one-off” and presented its decision as part of the five-year plan to allow more liberal winds to blow in China’s markets. Investors had thought the yuan should be lower against the surging US dollar; now it will be and, in future, market forces will play a greater role in fixing the value of the Chinese currency.

One can understand how the script could develop happily. Beijing is obsessed with the idea of the yuan becoming one of the International Monetary Fund’s reserve currencies alongside the dollar, the euro, sterling and the yen. Pro-market reforms might encourage the IMF to give a thumbs-up in November, thereby pulling China closer into a global financial system that Beijing would be less inclined to upset.

The alternative theory is alarming. Maybe the Chinese economy is weaker than indicated by the official statistics, which nobody trusts anyway. Wages are rising, corporate debts are mounting and the struggle to maintain a loose peg with the dollar has caused a loss of competitiveness against Asian rivals.

A classic solution would be to give exporters a shot in the arm by cutting interest rates sharply and allowing the currency to fall. If that were to happen, prepare for upsets. China’s trading partners in Asia would hate the new terms of trade, commodity prices might fall further and fresh currency wars could break out. September’s likely rise in US interest rates would compound tensions.

For the moment, judging which interpretation of Beijing’s move is correct is a guessing game. It could indeed be a minor and logical policy shift. The trouble is, the scary theory is also simple: the Chinese economy is stalling and Beijing wants its currency to weaken. If that’s right, the story has only just begun.

Analysis:   Why has China devalued its currency and what impact will it have?

Beijing devalues yuan against US dollar, which will make Chinese goods cheaper after 8.3% fall in exports in July.

These people are not trustworthy.  They have been undermining the USA or many years and we continue to let them get by with it!  It is time to give them a dose of their own medicine.

kommonsentsjane