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Is China About to Drop a Bombshell? Prepare for Market Plunge

 
TheToolMan
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01/20/2017 04:24 PM
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Is China About to Drop a Bombshell? Prepare for Market Plunge
Is Trump’s anti-China rhetoric going to trigger another currency war with China? If so, China may jump out ahead and devalue the Chinese yuan. In that case, the Dow Jones Industrial Average could plunge to 17,824, and the S&P 500 could plunge to 2,024 in a matter of weeks, wiping out trillions of dollars of investor wealth.

This is not guesswork. Plunges of over 10% in U.S. stock indices happened twice in the past year-and-a-half. The first time was in August 2015. The second wasJanuary-February 2016. Both times it was because of a combination of a stronger dollar and weaker yuan. It could happen again. And you need to understand the dynamics both to avoid losses and reap big gains by positioning ahead of the meltdown.

Here’s a quick synopsis: China is struggling under the weight of too much debt, poor demographics, and competition from lower priced suppliers in Vietnam, Indonesia, and the Philippines. China needs economic relief. Fiscal stimulus just means more non-sustainable debt. China has too much of that already. The easiest way to give the Chinese economy a boost is to cheapen its currency, the yuan (CNY), to make its exports more competitive.

When China cheapens CNY, they encourage capital flight. We’re seeing that now. Over $700 billion fled China last year alone. The wealthy and well connected try to get their money out of China as quickly as possible before the next devaluation. This causes the dumping of Chinese stocks, which could then infects U.S. stock markets and causes a global liquidity crisis. The last two times China devalued, U.S. stocks fell over 10%.

[link to dailyreckoning.com (secure)]
"My mom said the only reason men are alive is for lawn care and vehicle maintenance."
Anonymous Coward
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01/20/2017 04:35 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
the reason they devalue their currency is to get people to buy more of their products, just like when the Dollar is strong, people around the world can only buy less. if china collapses the economy well then they lose also, because who is going to buy their mess.
darkwolf007

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01/20/2017 04:43 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
the reason they devalue their currency is to get people to buy more of their products, just like when the Dollar is strong, people around the world can only buy less. if china collapses the economy well then they lose also, because who is going to buy their mess.
 Quoting: Anonymous Coward 73812966


That would give China the perfect excuse to nuke the U.S. off the map... all in the name of feigned self defense.
Conspiracy Theorist is nothing more than a derogatory title used to dismiss a critical thinker.

A time is coming when men will go mad,
and when they see someone who is not mad,
they will attack him, saying,
'You are mad; you are not like us."
-- St. Anthony The Great

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TheToolMan  (OP)

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01/20/2017 04:44 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
the reason they devalue their currency is to get people to buy more of their products, just like when the Dollar is strong, people around the world can only buy less. if china collapses the economy well then they lose also, because who is going to buy their mess.
 Quoting: Anonymous Coward 73812966


That would give China the perfect excuse to nuke the U.S. off the map... all in the name of feigned self defense.
 Quoting: darkwolf007


Never bite the hand that feeds you.
"My mom said the only reason men are alive is for lawn care and vehicle maintenance."
Malu nli

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01/20/2017 04:47 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
well we do have a real commander in chief now, so do what you need to do china, just be warned. it will not work out well for them, and they are on the brink of a civil war, devalue your money and see what happens
Trashy

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01/20/2017 04:49 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
D0ITdoIT

Cut all trade. We can feed ourselves. Let them fail like Venezuela. Why do we prop China up? Oh yeah, the clintons got donated to. Tiananmen Square - what's that? Who cares.
There's a 95% chance you are a candy ass uniparty tory.
darkwolf007

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01/20/2017 04:50 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
the reason they devalue their currency is to get people to buy more of their products, just like when the Dollar is strong, people around the world can only buy less. if china collapses the economy well then they lose also, because who is going to buy their mess.
 Quoting: Anonymous Coward 73812966


That would give China the perfect excuse to nuke the U.S. off the map... all in the name of feigned self defense.
 Quoting: darkwolf007


Never bite the hand that feeds you.
 Quoting: TheToolMan


True, OP. I guess we're heading for a Fallout series end to Humanity... I'm just going to stick to Sanctuary for the most part. I may be the General of the Minutemen, but I sure as heck don't feel like traveling all over the Commonwealth with so few Minutemen. Make Sanctuary great again! laugh
Conspiracy Theorist is nothing more than a derogatory title used to dismiss a critical thinker.

A time is coming when men will go mad,
and when they see someone who is not mad,
they will attack him, saying,
'You are mad; you are not like us."
-- St. Anthony The Great

Social Credit Loser here.
Anonymous Coward
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01/20/2017 04:57 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
if there is one thing chaina can do its deal.

so they should make deals with us before their competition.

a deal has to be mutually beneficial to both parties.
Deadpool Loves You

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01/20/2017 04:58 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
We will see a lot of changes and they will not necessarily be the ones you expect.

A lot of the Doom predictions are just ways of the crooks keeping the game running. If event "X" happens, we won't end up with doom result "Y" necessarily. Sweet "Z" is an option and it is the one that is better for you, not the Doomsayers.
The universe is basically an animal. It grazes on the ordinary. It creates infinite idiots just to eat them.

The Rickest Rick Sanchez comments are meant for entertainment purposes only and should not be construed to reflect the feelings and opinions, implied or expressed, of the author.
TheToolMan  (OP)

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01/20/2017 05:09 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
the reason they devalue their currency is to get people to buy more of their products, just like when the Dollar is strong, people around the world can only buy less. if china collapses the economy well then they lose also, because who is going to buy their mess.
 Quoting: Anonymous Coward 73812966


That would give China the perfect excuse to nuke the U.S. off the map... all in the name of feigned self defense.
 Quoting: darkwolf007


Never bite the hand that feeds you.
 Quoting: TheToolMan


True, OP. I guess we're heading for a Fallout series end to Humanity... I'm just going to stick to Sanctuary for the most part. I may be the General of the Minutemen, but I sure as heck don't feel like traveling all over the Commonwealth with so few Minutemen. Make Sanctuary great again! laugh
 Quoting: darkwolf007


China HAS to be shitting their pants after Trumps speech today. A M E R I C A ... F I R S T ! ! !
"My mom said the only reason men are alive is for lawn care and vehicle maintenance."
TheToolMan  (OP)

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01/20/2017 05:09 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
D0ITdoIT

Cut all trade. We can feed ourselves. Let them fail like Venezuela. Why do we prop China up? Oh yeah, the clintons got donated to. Tiananmen Square - what's that? Who cares.
 Quoting: Trashy


Agree, clothes and computers will get more expensive. Two things I can probably say 95% of us don't have to worry about....
"My mom said the only reason men are alive is for lawn care and vehicle maintenance."
Psych

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01/20/2017 05:12 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
No. China is actually moving towards letting their currently float for quite some time already. You can't just flip the switch.

I do think Trump will put some incentives in place to speed up the process.
darkwolf007

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01/20/2017 05:14 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
D0ITdoIT

Cut all trade. We can feed ourselves. Let them fail like Venezuela. Why do we prop China up? Oh yeah, the clintons got donated to. Tiananmen Square - what's that? Who cares.
 Quoting: Trashy


Agree, clothes and computers will get more expensive. Two things I can probably say 95% of us don't have to worry about....
 Quoting: TheToolMan


Well, long as computers and clothes become more durable and longer lasting the up in price would be doable for me.
Conspiracy Theorist is nothing more than a derogatory title used to dismiss a critical thinker.

A time is coming when men will go mad,
and when they see someone who is not mad,
they will attack him, saying,
'You are mad; you are not like us."
-- St. Anthony The Great

Social Credit Loser here.
TheToolMan  (OP)

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01/20/2017 05:31 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
D0ITdoIT

Cut all trade. We can feed ourselves. Let them fail like Venezuela. Why do we prop China up? Oh yeah, the clintons got donated to. Tiananmen Square - what's that? Who cares.
 Quoting: Trashy


Agree, clothes and computers will get more expensive. Two things I can probably say 95% of us don't have to worry about....
 Quoting: TheToolMan


Well, long as computers and clothes become more durable and longer lasting the up in price would be doable for me.
 Quoting: darkwolf007


True that
"My mom said the only reason men are alive is for lawn care and vehicle maintenance."
Anonymous Coward
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01/20/2017 05:33 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
Got short again yesterday for just such an event
NotStarvingActress

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01/20/2017 05:57 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
the reason they devalue their currency is to get people to buy more of their products, just like when the Dollar is strong, people around the world can only buy less. if china collapses the economy well then they lose also, because who is going to buy their mess.
 Quoting: Anonymous Coward 73812966


That would give China the perfect excuse to nuke the U.S. off the map... all in the name of feigned self defense.
 Quoting: darkwolf007



Guess you're not aware of how much of the USA China's super wealthy now own. They would not be at all happy with the Chinese leadership if their property including fab hotels and stores were wiped out. Also China knows the USA has parity nuke capability so would quickly retaliate. Not even a proxy war elsewhere makes sense.
NotStarvingActress

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01/20/2017 05:58 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
well we do have a real commander in chief now, so do what you need to do china, just be warned. it will not work out well for them, and they are on the brink of a civil war, devalue your money and see what happens
 Quoting: Malu nli


Civil War in China? Who are all the players?
NotStarvingActress

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01/20/2017 06:01 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
D0ITdoIT

Cut all trade. We can feed ourselves. Let them fail like Venezuela. Why do we prop China up? Oh yeah, the clintons got donated to. Tiananmen Square - what's that? Who cares.
 Quoting: Trashy


Have you forgotten all of the super wealthy in the US (and elsewhere in the world) who buy the organs from executed prisoners particularly the radicals who protest against the government? Don't know if there are any active Falun Gong left but there certainly are Christian organizers and leaders.
Malu nli

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01/20/2017 06:07 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
well we do have a real commander in chief now, so do what you need to do china, just be warned. it will not work out well for them, and they are on the brink of a civil war, devalue your money and see what happens
 Quoting: Malu nli


Civil War in China? Who are all the players?
 Quoting: NotStarvingActress


it's really about the fact that they finally have a middle class, a big one and they are getting used to having a much better life than most. their economy is not doing so well and it could crash easily. if that happens the middle class will be no longer and there have been rumors of a civil war
Judethz

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01/20/2017 06:07 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
9teen The Chinese Lunar New Year starts on Fri 27th Jan when the whole country shuts down for a week or so.
Trashy

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01/20/2017 06:14 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
D0ITdoIT

Cut all trade. We can feed ourselves. Let them fail like Venezuela. Why do we prop China up? Oh yeah, the clintons got donated to. Tiananmen Square - what's that? Who cares.
 Quoting: Trashy


Have you forgotten all of the super wealthy in the US (and elsewhere in the world) who buy the organs from executed prisoners particularly the radicals who protest against the government? Don't know if there are any active Falun Gong left but there certainly are Christian organizers and leaders.
 Quoting: NotStarvingActress


green
There's a 95% chance you are a candy ass uniparty tory.
darkwolf007

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01/20/2017 06:20 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
the reason they devalue their currency is to get people to buy more of their products, just like when the Dollar is strong, people around the world can only buy less. if china collapses the economy well then they lose also, because who is going to buy their mess.
 Quoting: Anonymous Coward 73812966


That would give China the perfect excuse to nuke the U.S. off the map... all in the name of feigned self defense.
 Quoting: darkwolf007



Guess you're not aware of how much of the USA China's super wealthy now own. They would not be at all happy with the Chinese leadership if their property including fab hotels and stores were wiped out. Also China knows the USA has parity nuke capability so would quickly retaliate. Not even a proxy war elsewhere makes sense.
 Quoting: NotStarvingActress


No, NotStarvingActress. I am fairly well aware of the fact that China owns quite alot of what is now formerly U.S. territory. I know that the Chinese has alot of their people in the vast formerly U.S. lands that they bought. I know that the Chinese are forming their own functioning parallel societies right alongside the Muslims, Ghettos, Mexicans, and others.

Only difference is the Chinese societies are all legal and lawfully there and even Chinese Government sponsored too. If any of us Americans go over there and start shooting up the place that'll be an act of war actually. Go shoot up a Ghetto and it's a hate crime automatically.

I know fully, NotStarvingActress, that the U.S. is so very debilitated in ways that most GLPers can't even comprehend. The few of us GLPers who do comprehend just how bad the U.S. is these days due to Obama and Bush Jr. even we're left with our jaw dropped knowing that Trump has his hands full with trying to reassemble a on-the-verge-to-Civil-War country. This Obama meme is way too accurate:

obamatruth

Trump has so much to do, and he requires another four years to even begin to make any headway whatsoever. If Trump can't get another term as our President then everything he does for the next four years will be of no long term use. I don't doubt that our post-Trump President will be Hillary Clinton herself. She nearly won this time and the libtards won't quit. They'll have at least four years of slyly and other subversive tactics to ensure Hillary becomes our next President.

Yeah so the next four years may very well be some of the most prosperous years the U.S. has seen since 9/11 when the next President of the U.S. will be just as bad or worse than Obama himself. So many GLPers are so incredibly short sighted as to completely believe Trump will solve all of our problems for us. I know I am in the extreme minority here when I say that Trump may very well prove to be our best President since ever, but just as fast as he's deleted much of the online Obama BS the next President who will be an Illuminati Puppet will erase Trump's everything just as fast and quite possibly with such a vengeance that it'll seem unreal.
Conspiracy Theorist is nothing more than a derogatory title used to dismiss a critical thinker.

A time is coming when men will go mad,
and when they see someone who is not mad,
they will attack him, saying,
'You are mad; you are not like us."
-- St. Anthony The Great

Social Credit Loser here.
darkwolf007

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01/20/2017 06:21 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
D0ITdoIT

Cut all trade. We can feed ourselves. Let them fail like Venezuela. Why do we prop China up? Oh yeah, the clintons got donated to. Tiananmen Square - what's that? Who cares.
 Quoting: Trashy


Have you forgotten all of the super wealthy in the US (and elsewhere in the world) who buy the organs from executed prisoners particularly the radicals who protest against the government? Don't know if there are any active Falun Gong left but there certainly are Christian organizers and leaders.
 Quoting: NotStarvingActress


green
 Quoting: Trashy


I can see someone buying someone's organs just to throw against smooth walls just to watch the organs slowly slide down the walls.
Conspiracy Theorist is nothing more than a derogatory title used to dismiss a critical thinker.

A time is coming when men will go mad,
and when they see someone who is not mad,
they will attack him, saying,
'You are mad; you are not like us."
-- St. Anthony The Great

Social Credit Loser here.
Anonymous Coward
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01/20/2017 06:40 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
Nope devaluing nothing is still nothing.it would starve their own hungry masses.which they fear more than war.managing the great hoard is very precarious.
Anonymous Coward
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01/20/2017 06:43 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
China wants to play currency games with Trump, the tariff just went higher. Let the market crash, it climbs on the backs of working people.
Anonymous Coward
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01/20/2017 06:46 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
the reason they devalue their currency is to get people to buy more of their products, just like when the Dollar is strong, people around the world can only buy less. if china collapses the economy well then they lose also, because who is going to buy their mess.
 Quoting: Anonymous Coward 73812966


That would give China the perfect excuse to nuke the U.S. off the map... all in the name of feigned self defense.
 Quoting: darkwolf007


Don't be retarded. China will not nuke the US.
-Adam-

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01/20/2017 07:45 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
the reason they devalue their currency is to get people to buy more of their products, just like when the Dollar is strong, people around the world can only buy less. if china collapses the economy well then they lose also, because who is going to buy their mess.
 Quoting: Anonymous Coward 73812966


That would give China the perfect excuse to nuke the U.S. off the map... all in the name of feigned self defense.
 Quoting: darkwolf007


Paper Tiger, US still has a powerful secret weapons program(s).

It might be dirty but China would have its shit kicked out of them.
Jimi Lightspeed

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01/20/2017 07:47 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
The world is to find out how determined and resilient we are when we become united.
Xeven

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01/20/2017 08:38 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
Is Trump’s anti-China rhetoric going to trigger another currency war with China? If so, China may jump out ahead and devalue the Chinese yuan. In that case, the Dow Jones Industrial Average could plunge to 17,824, and the S&P 500 could plunge to 2,024 in a matter of weeks, wiping out trillions of dollars of investor wealth.

This is not guesswork. Plunges of over 10% in U.S. stock indices happened twice in the past year-and-a-half. The first time was in August 2015. The second wasJanuary-February 2016. Both times it was because of a combination of a stronger dollar and weaker yuan. It could happen again. And you need to understand the dynamics both to avoid losses and reap big gains by positioning ahead of the meltdown.

Here’s a quick synopsis: China is struggling under the weight of too much debt, poor demographics, and competition from lower priced suppliers in Vietnam, Indonesia, and the Philippines. China needs economic relief. Fiscal stimulus just means more non-sustainable debt. China has too much of that already. The easiest way to give the Chinese economy a boost is to cheapen its currency, the yuan (CNY), to make its exports more competitive.

When China cheapens CNY, they encourage capital flight. We’re seeing that now. Over $700 billion fled China last year alone. The wealthy and well connected try to get their money out of China as quickly as possible before the next devaluation. This causes the dumping of Chinese stocks, which could then infects U.S. stock markets and causes a global liquidity crisis. The last two times China devalued, U.S. stocks fell over 10%.

[link to dailyreckoning.com (secure)]
 Quoting: TheToolMan

If we completely DUMP China it will cause a resurgence of US manufacturing and the collapse of China.

Go ahead, make our day.
I reserve the right to declare my comments and posts as satire. Nothing I post should be considered or interpreted as advocacy for illegal activity. My comments are designed to inspire critical political thinking. I only mean half of what I say and only say half of what I mean.
Anonymous Coward
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01/20/2017 09:38 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
like i say every day out loud

FUCK CHINA
Anonymous Coward
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01/20/2017 09:43 PM
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Re: Is China About to Drop a Bombshell? Prepare for Market Plunge
well we do have a real commander in chief now, so do what you need to do china, just be warned. it will not work out well for them, and they are on the brink of a civil war, devalue your money and see what happens
 Quoting: Malu nli


Trump or not ... It will not going well for us too... Dont be a fool here





GLP