Global stock markets tanked last week, after China devalued the yuan to try and save the Shanghai Composite from yet another wave of selling. The Vietnamese dong and Kazakhstan tenge were also devalued - the latter losing one-quarter of its value.
Both countries are neighbors of China, so their economies are inextricably tied to the now-imploding China Bubble.
Trouble is, geography be damned, so is the rest of the world.
Chinese consumers were being counted on by the Bilderbergers to pick up the shopping slack from a stagnant West, where kids would now rather go to Thailand for a couple weeks than buy a new living room set.
But the huge Chinese real estate bubble has burst, leaving home-owners in the world’s most populous nation upside down and shopping malls empty. Even worse, Chinese authorities will try to devalue their way out of this debt morass, just as the US has been trying to do with a lower dollar.
This is very bad news for the global economy.
A devalued yuan means Asian and African nations who export to China will lose market share in China, while manufacturers around the globe will now have to compete with even cheaper Chinese exports.
It was a currency war that precipitated the last Great Depression, as countries scrambled to make their products cheaper. By then global demand had dried up, commodity markets were torn asunder and the big money had exited global stock markets.
It appears that all bankster attempts to incite WWIII to reflate the global economy have failed. Now, it will surely be a race to the bottom, as the deflationary elephant in the room rears its ugly head.
The best we can hope for is that people will emerge from these impending difficult times tougher and will then join the fight to nationalize the Federal Reserve and send its owners to jail.
Dean Henderson is the author of seven books, including, Big Oil & Their Bankers in the Persian Gulf, Illuminati Agenda 21, Nephilim Crown 5G Apocalypse and Royal Bloodline Wetiko & The Great Remembering. Subscribe free to his Left Hook column at deanhenderson.substack.com