Wednesday, January 4, 2017

The Elevator Ride To The Third World Awaits

When the world's second largest economy, superstar of Globalization, and marginal consumer of everything, returns to the Third World, the rest of the world will be along for the ride. Exploitation mentality is what makes a country Third World, and the entire planet has been infected with zero sum mentality...

Exactly one year ago, the Chinese authorities had this to say about Yuan devaluation:

Fast forward one year and a -7% decline in the value of Yuan and they now have this to say...

In other words, at higher levels of Yuan valuation, devaluation was impossible. Now it's a good idea.

You can't possibly make this shit up.

Meanwhile, here is Bitcoin in Yuan, now at a new all time high:

And here is Offshore Yuan in Dollar terms (red) with Bitcoin in Yuan.

We see that overnight the PBOC massively strengthened the Yuan (red) relative to dollar, however, that's what they would do ahead of any large devaluation to shake off the short-sellers...

While I'm here, might as well show this chart...first wave down and 3 wave retracement. Check.