Currency War With China Will Intensify
As the trade war intensifies, a currency devaluation could be the next retaliation from China. This would result in lowering China’s buying power in the global economy and cause a deflationary shock for the world. As Dan explains, China cannot both maintain its exchange rate to the dollar and continue to prop up its fragile banking system. The resulting yuan devaluation would be a major offensive in the ongoing currency war with the U.S.