I wrote a blog back in Sept/16 about China and the offshore yuan etc. It was a bit technical in nature but feel free to re-read it here: highrockcapital.ca/pauls-blog/the-last-time-this-happened-in-china-the-world-stock-markets-sneezed
Today, I wanted to keep it a little lighter. I noticed a few things about China recently that have me somewhat concerned about the state of the global economy.
First of all, China continues to devalue to yuan (the Chinese currency). They are likely doing so for two main reasons: 1) to spur exports to the USA and 2) to export the deflation in China along with their exported goods. When China devalues their currency, it is not really a great signal for the global economy. (Remember, higher on the graph is a weaker yuan). Exhibit A: