King World News report by John Ing:
“I am focused on the ramifications of the Chinese devaluation. There is a lot of misinformation about this move but the reality and the point of the exercise is a product of the ongoing race to the bottom as far as currencies. All of this is a result of unprecedented worldwide quantitative easing and liquidity….
“Central planners feel bold because there have been not yet been any major consequences other than roaring stock markets. The dollar is still the reserve currency of the world. However, many currencies are locked to it and those countries are having difficulties. Therefore, they are resorting to these devaluations in order to protect their economies.
Ing says what the Chinese are doing is very strategic; that they want their currency to become like the euro and the yen…worthless and stagnant. Right. That is the goal of every emerging economy.
The Chinese have devalued their currency because they have more than $1 trillion worth of obligations. There are two ways for them to pay those long-term obligations. One is to run down their foreign exchange reserves. So they chose to devalue. Of course, what is missing here is the fact the China stock exchange plummeted 22% overall lately. That is not a “correction”. That is a disaster.
Read it all here.
So, watch for the financial world to end in October, according to Ing. If that does not happen, it would be time to completely Ing-nore King World and their writers from that point forward.