Donald DumbFuck

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This is about to get exciting
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As said repeatedly this is a war the US cannot win. And take note that the effect in the US will also be felt in Kenya.

Inflation. Primary effect of devaluation of a currency to a local economy. Def: A devaluation is a decline in the country’s standard of living. Traditionally, it is a tool used by a desperate government with a poor economic policy.

Trump still up 2:0

China needs a different approach.

really?

Ama?

At a very elementary level, devaluation makes exports cheaper and imports more expensive. this means some external consumers who couldn’t afford our products now can; and that has the effect of spurring production here at home -more income for our producers and that means a higher quality of life. the inverse is true.
An economy like China that has substitute products for virtually anything the US has to export to them could stop importing the more expensive US products hurting their producers who suddenly have a surplus they have to find new markets for - remember the alarm by pork and soybean farmers a few months back?
China could as well source the two products from Brazil and brazil would be all too happy to steal the market…

Since Sielewi devaluation and evaluation all I can do is post this to be relevant [ATTACH=full]184940[/ATTACH]

Ata mimi sielewi lakini nimenyamaza.

Post chochote basi kama mimi. :smiley:

Not in the case of China. China is a net exporter so the risk of imported inflation is minimized and will affect few products such as soybeans . plus PBOC has other tools to deal with inflation. should growth be threatened,expect china to export its way back by allowing a weaker yuan.

Devaluation is where the Central Bank governor simply wakes up in the morning and declares…‘Kutoka leo 1$=110KES up from 1$=100KES.’
This has the effect of making stuff Kenyans sell abroad (i.e. Exports) cheaper. If a foreigner has $1million that person will move from having 100millionKES to 110millionKES overnight.
China are trying to nullify the effect of taxation on their products by the US govt by devaluing their currency (allowing Americans to buy more Chinese stuff with the same amount of US dollars).

cc @Mathaais @Abba

The problem with trump is his ego demands grand gestures but have no the patience or intelligence to weigh the reaction and consequences

Layman : I’m to understand that usa owes china trillions of dollars in their reserves . What if china iseme ferk it , I need all my money back, will usa raise that cash?

Another thing: china exports stuff all the world. So si ati usa pekee. So what if , what if china decides to stop trading na usa and they start deals with European Union , africa and other places like canada ?

Usa has entitlement issues and days have passed where they find their ways through bullying. This isn’t the first time china is deflating their currency, hata canada used to deflate their dollars 4 yrs ago to favor their trade with usa. I’ll say China 2: 0 Usa

Umenichanganya zaidi… hata hungepost:p

try to take it in slowly:D.

The way bonds work not really. They have to sell their bond to another person/country. They can’t claim it back at once.

Remember it is not China that set the terms of engagement when the instrument was being created. It was USA.

Sawa tu. Wacha Yuan ianguke kidogo hata sisi tuendelee kujibamba na made in China. But China will not rely on export economy for ever. And currency manipulation will eventually catch up with them.

Haha take it this way.

If dollar increases against ksh for example ikuwe 110shs. Exporters who convert kshs into dollars to import will be forced to pay more meaning imports will be expensive. On the other hand, exporters will be very happy because watapataa more kitunguu in terms of kenya shillings. Now apply to China. By devaluing the yuan, they make their products more attractive to become cheaper for export meaning kitunguu inukee zaidi but wale wanataka kuimport in USD will have to fork out more yuan meaning watapigwa miti zaidi.

Ukitaka na kiluhya, sema tu pia:D:D

:D:Dthe simpsons predicted this shit a very long time ago

https://www.youtube.com/watch?v=ZtparSnQhFc