China is in serious economic trouble. It has lowered (devalued) its currency three times in the last week or so. That in-turn has caused the Dow Jones (DJ) Industrial Average to plunge 530 points. So what's the big deal? If you see a drop of 600+ points, that's a CRASH in OUR economy!
We should be aware that the statistics published from China about their economy are bogus, just like our own. They are a Communist country and their leaders will never give accurate stats that would make them look bad to the rest of the world. Neither does Obama by the way!
China devalues their currency because it actually helps boost their economy. They rely a lot on their exports to float their economy. When they devalue their currency, Americans (and the rest of the world), have to pay more for their products. That helps China but hurts the rest of the world.
Countries around the globe are all worried that if the Chinese economy collapses, so will theirs. They have a right to feel this way. China buys things like copper and oil and when they stop buying these commodities, that hurts the countries selling them like Canada, Venezuela and Australia.
Bottom Line
Keep a close watch on the DJ average tomorrow (Monday). If it keeps dropping that's the RED FLAG for our economy. Are you Prepared?
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