China Unleashes Deflationary Spiral

1992 China (19)Global stock markets tanked last week, after China devalued the yuan to try and save the Shanghai Composite from yet another wave of selling. The Vietnamese dong and Kazakhstan tenge were also devalued – the latter losing one-quarter of its value.

Both countries are neighbors of China, so their economies are inextricably tied to the now-imploding China Bubble.

Trouble is, geography be damned, so is the rest of the world.

Chinese consumers were being counted on by the Bilderbergers to pick up the shopping slack from a stagnant West, where kids would now rather go to Thailand for a couple weeks than buy a new living room set.

But the huge Chinese real estate bubble has burst, leaving home-owners in the world’s most populous nation upside down and shopping malls empty. Even worse, Chinese authorities will try to devalue their way out of this debt morass, just as the US has been trying to do with a lower dollar.

This is very bad news for the global economy.

A devalued yuan means Asian and African nations who export to China will lose market share in China, while manufacturers around the globe will now have to compete with even cheaper Chinese exports.

It was a currency war that precipitated the last Great Depression, as countries scrambled to make their products cheaper. By then global demand had dried up, commodity markets were torn asunder and the big money had exited global stock markets.

It appears that all bankster attempts to incite WWIII to reflate the global economy have failed. Now, it will surely be a race to the bottom, as the deflationary elephant in the room rears its ugly head.

The best we can hope for is that people will emerge from these impending difficult times tougher and will then join the fight to nationalize the Federal Reserve and send its owners to jail.

Dean Henderson is the author of five books:Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Das Kartell der Federal Reserve, Stickin’ it to the Matrix & The Federal Reserve Cartel.  You can subscribe free to his weekly Left Hook column @www.hendersonlefthook.wordpress.com

9 responses to “China Unleashes Deflationary Spiral

  1. Pingback: China Unleashes Deflationary Spiral | MayorGalvan

  2. Mr. Henderson, thanks for the coverage on this issue. Given the recent explosions in Tianjin and the Shandong Province over the past 2 weeks, do you think there is a masked geopolitical port closure that would restrict trade, either in retaliation for the currency devaluation, or as a move to slow trade with South Korea, either by North Korea or the West? This is all occurring too simultaneously to be believable as simple plant and factory explosions.

  3. Pingback: crash test dummies-Madsen On Tianjin Blast- | Dublinmick's Breaking News

  4. I wonder if this is a start for the change of the world’s economic development model. I copied the below quote from a comment made on another web page.

    Just 5 months ago, the U.N.’s climate-change czar, Christiana Figueres, stated “…we are setting ourselves the task of intentionally, within a defined period of time to change the economic development model that has been reigning for at least 150 years, since the industrial revolution.”

    In short, I am suggesting that we may well be watching a murder mystery unfold right before our eyes and in broad daylight: Capitalism and Free Enterprise may soon be pushing up daisies. An economic reset would undoubtedly feature Technocracy’s energy-based economic model with physical and private resources subverted into a global trust for the “global commons”.

    I have searched the net and found the first part of the quote and the article places her statement to have been made at a news conference in Brussels on Jan. 22,2014. http://news.investors.com/ibd-editorials/021015-738779-climate-change-scare-tool-to-destroy-capitalism.htm

    Then of course this Statement.

    “We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.” (David Rockefeller, Statement to the United Nations Business Council, September 23, 1994.)

  5. What the hell you on about? $800 billion dollars a year is leaving China and so they had to devalue. So the London vampires have unleashed a deflationary spiral in order that everyone will become desperate. And partake in WW3.

  6. Pingback: Nouvel Ordre Mondial et casino boursier: La Chine et la spirale déflationniste… | Resistance71 Blog

  7. And a third industrial explosion has just happened in the Shandong Province, this time in the industrial zone of Lijin, Dongying City. Dongying is home to the Shengli Oilfield, which is the second largest Oilfield nationally in the PROC.

    http://www.mirror.co.uk/news/world-news/china-explosion-city-shandong-rocked-6357544

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