“Yuan Flexibility” Is Gonna Bite If You Aren’t Prepared

Hey America, This is just a heads-up that if you are in debt or not saving money, this “Yuan Flexibility”, if truly implemented, is gonna bite you hard. The cost for everything will go up and you will feel the pain. It may be worth it in the long run if it helps the U.S. retain jobs, but the way I’m seeing things is that it’s going to cause some real discomfort. Of course, China has been prevaricating about this issue for a while, so who knows if it will really happen.

It will also cause pain in China. I can already tell you what will happen. Factories here will close and move to some other countries like Malaysia or Indonesia. Contrary to the hope of the U.S. Congress, the jobs will not return to the United States (in order for that to happen, Congress would need to get rid of some strangling tax laws). This will cause yet another stir in the waters of the global economy. People will always look for the highest quality at the lowest price. So enjoy the sales on technology and household goods while they last, because if the Yuan is “equalized” against the dollar, you’re in for quite a price-ride.

winner-winner, chicken dinner 🙂

Leave a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.