China Can’t Save Itself – Downside Risk for Gold is ‘Very Low’ – Celente
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Kitco News - While many news headlines said it was a ‘surprise’ move by
authorities to devalue the Chinese yuan, one trends forecaster said he
was expecting it and more surprises are in store. Speaking to Kitco
News, Gerald Celente, publisher of the Trends Journal said he was
completely unfazed by the China news. He explained that on July 24,
China’s State Council telegraphed the move when it announced a series of
measures to pump up the economy and boost declining exports. 'Although
it wasn’t reported as such, it was clear to the institute the yuan would
be devalued,' he said. On Wednesday, China's yuan hit a four-year low,
falling for a second day after The People’s Bank of China devalued it by
close to 2%. Spot yuan in China slid to as low as 6.4510 per dollar,
its weakest since August 2011, after the central bank set its daily
midpoint reference at 6.3306, even weaker than Tuesday's devaluation.
China has been implementing economic and monetary measures to
resuscitate its flagging economy. The move by China shook the financial
world, with Asian and European stock markets selling off. The weaker
yuan will make imported goods into China—the world’s most populous
country and the second-largest economy—more expensive. It will also make
Chinese-produced goods cheaper on the world export market. But Celente
believes that China can’t save itself and called it an 'act of
desperation.' 'That’s not going to get them out of this. You’ve got a
bunch of rookies playing in a big game over there and they don’t know
how to get out of it.'
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