Powell Pause Eases Pressure on China, With Yuan Defying Slowdown

The Federal Reserve’s shift to pause mode is helping China’s currency defy a deepening slowdown across the world’s No. 2 economy.

Buy China stocks with 4 limbs?

Even after data on Thursday showed a sharp downturn in China’s factory-gate price gains, the yuan hit its strongest against the dollar since July.

Strong Yuan is good for exporters such as the fruit company.

“The yuan can hold up fine” until the Fed hikes again, trade tensions resume and China “goes all-in on stimulus,” said Michael Every, head of Asia financial markets research at Rabobank in Hong Kong. “It’s a ‘when’ and not an ‘if’ for when it reverses direction again and we test new lows.”

Some1 please remove him.


I am old enough to remember the right used to clamor for austerity in the middle of the Great Recession and ridiculed Bernanke as Helicopter Ben. Funny how that changed.


Who wanted austerity? They wanted tax cuts instead of stimulus spending. Stimulus spending created/saved 1 job per $400k spent per numbers from Obama’s own team. Anyone who thinks that was an effective and efficient use of money should know $80k of GDP growth creates 1 job.


But in 2011 Republicans in the House of Representatives demanded spending cuts as a precondition for raising the debt ceiling, a vote that had historically been pro-forma (the ceiling has been raised 78 times just since 1962). The resulting Budget Control Act of 2011 has significantly reduced the growth of discretionary spending. Both in word and deed, Republican lawmakers have embraced and enforced fiscal austerity, and the result has been the most discouraging recovery on record.


You know the trick, buy only when economy in recovery path. No rush. Second, buy the top moat company (like AAPL, AMZN,…etc).

Anyway, I am not in other country market unless WB gets into it. If they buy, I buy the same stock.

This is off line to original thread. Some bloomberg report about 2018 china report


You’re better at math than that. They didn’t cut spending. They slowed the growth rate. Spending was still growing.