Devaluing Huan No Big Deal
China has rattled the global economy by declaring its very own currency war. Financial pundits are warning that China’s devaluation of the huan spells disaster for the American economy. Not so, according to Peter Schiff, author, financial analyst and CEO of Euro Pacific Capital. “There are a lot of problems for the U.S. but this is not one of them,” Schiff says. “China’s economy is not failing. This is a small devaluation–2 percent. The Chinese currency has increased in value dramatically over the past several years along with the U.S. dollar. So this move was motivated not by the exchange rate between the huan and the dollar, but by the huan and all the other currencies because the dollar is in a bubble right now. The dollar is very overvalued.” Schiff explains further to Newsmax Prime’s J.D. Hayworth.
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