Audio Transcription

Foster Gamble: Let me just share a little bit of my research and my kind of knitting together of the various information that I’ve found…

China devalued the yuan. So what’s the effect of that? For them, it allows them to stabilize what was a dropping GDP and to scrape a lot of inflation out of their economy, as Russia was able to do when it dropped the ruble. It looks like bad news at first when a currency gets deflated, but if it’s been deflated that’s actually nature taking over. The deflation actually allows them to increase their exports as well because goods are cheaper coming from China with a lower currency. It also allows them to position themselves even better for the coming global currency reset. This imminent reset has been mentioned all the way to the top, even by Christine LaGarde, the head of the IMF.

China has actually referred to this devaluation not as a currency war, but as what they call “an exchange rate liberalization”. It’s basically beginning to free up the Chinese economy from U.S. domination and they’ve been taking lots of steps in that regard as have other countries, especially in the BRICS alliance. It allows the yuan to float more freely against the dollar and to help establish the yuan as a global reserve currency. The Bank of China itself said, “This will allow the markets to have more influence over the yuan exchange rate.” In other words, this is what the free market actually is supposed to be doing. But, as I mentioned, the U.S. has lots of reasons why they don’t want this to happen. A rise in the interest rates of the U.S. would expose U.S. government and banking insolvency and this would pave the way for the revaluation of the dollar down and other currencies that the U.S. is trying to prevent, or at least continue to stall, their revaluations.

Continue reading →