The brief post is to share with my readers some recent developments that will affect our lives, China’s devaluation of their currency and new developments concerning the Internet.
A DEVALUED YUAN. China just devalued their currency (described as a “surprise” to everyone) and then the last two days the People’s Bank of China has intervened in the global currency markets to keep it from slipping further in value as people sell off their yuans. I was asked why would China do this? When China’s currency goes down in value, their exports become instantly cheaper making their export products instantly very attractive…as if they were not already! With more exports the Chinese hope to boost their economy at the expense of the rest of the global. (Call this a currency war!) But the cheap yuans threaten the major U.S. banks which have loaned billions of dollars to mainland Chinese companies. These loans will be harder for Chinese lenders to payback and the default rate is expected to rise. Let’s look at what some big banks have loaned and how much their stock just dropped after China’s devaluation: Citigroup, $21.1 billion loaned to China & their stock just dropped 3.2%…Bank of America, $12.1 billion loaned to China & their stock just dropped 3.2%…J.P. Morgan Chase, $17.7 billion loaned to China and their stock dropped 2.4%. Just how this currency war will pan out in the next month or two will be interesting.
FUNERAL FOR THE INTERNET? As the 40 yr. old Internet is becoming more accessible to people (audio surfing, touch screens, Magic mouses, etc.) new technology is being prepared that will supposedly make it obsolete and abandoned by users. Well, I wonder if the prognosticators of its death will prove correct. Another recent development is that WiFi energy is now being used to charge cell phones and other appliances. As WiFi energy is nearly ubiquitous that would give the common person free energy. As the elite have suppressed technologies that would give us free energy…I am curious where this will go.
Have a great day my friend.