Unusual movements in the Yuan overnight.

Watch and listen to this video carefully! And pay attention to all the headline banners!
Seems like a harmless news, right?
Right, or it could be the beginning of the US and even the world's nightmare!

They were talking about china's peg to the dollar causing inflation in the mainland china, so the chinese will need to rise the yuan faster. In fact that might be what the chinese was doing, hence the unusual movements in the yuan. Which means China will "export" their inflation to the US!

Any countries that peg their currency to the dollar, will suffer inflationary pressure because the value of the dollar is sinking. In the case of the arab states, they can still compensate with their oil revenues. But china itself has quite a problem with its food inflation.

Listen to them talking about the butterfly effect. And also them poking at the politicians and hawks who want china to rise (even float) the yuan much faster.

Do you want China to export inflation to the US when the US economy is not in a good shape? What do you think will happen?


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PS: It's still the economy.