Yuan and Renminbi kicked me in the 401Ks and took a cleaver to my IRA. Not acquainted with them you say, well you better pull on your chaps.
They’re really one and the same Chinese currency in black Ninja robes, designed to keep you off balance as they feint like tigers and fly like dragons around us unsuspecting victims.
The Chinese dictators recently deflated them in a spate of panic when they saw their hybrid commie/capitalist economy slowing down for the first time in some 20 years. They freaked when their ridiculous stock market plunged dragging down millions of hapless mom and pop investors who had been spurred to gleefully rake in profits on margin deals – borrowing Yuans to buy stocks.
So the incandescent bulb switched on above their noggins and they thought, well America boosted its economy out of the Great Recession by pumping Fed dollars into the U.S. economy so let’s pump up the market. Didn’t help because the old bus is their entire export-based economy.
They believe that priming the carburetor on an old VW bus is like tweaking a micrometer on a Lamborghini. Doesn’t work. So shucks, let some air out of the tires to increase traction.
And the currency was devalued. But all that did was reveal their sorry hand to the world.
They had freaked and showed that they don’t know how to restart that old bus, heavy with all their wealth, political stability, and ambition for the country’s future. They revealed that it’s infected with some Ebola-bus mutation dragging markets around the world into the abyss of uncertainty and fear.
Very scary, because the Chinese ability to endure pain and hardship knows no bounds and who knows where they can drag the world economy. Think of Mao’s Long March and the survival of China in its desperate struggle against Japan in World War II. They are a strong and resilient people and I hope they pull out of this dive because this is personal.
But for now, heaven help me. Those flying dragons are kicking me where it really hurts.