Tag Archives: Revelation

China’s Currency Impacts World Markets for Second Day

China’s Central Bank cut the guiding rate for their national currency for the second day in a row, impacting world markets as the Chinese government attempts to boost exports.

Officials with the Central Bank tried to dampen the shockwaves being sent through world markets by saying the day’s move was not part of a sustained devaluation of the Chinese currency.

“Looking at the international and domestic economic situation, currently there is no basis for a sustained depreciation trend for the yuan,” it said in a statement.

The Yuan was down 1% Wednesday after a 1.9% devaluation Tuesday.  The total overall decline is the largest in two decades and comes after Chinese government reports showed exports from the nation fell 8% during July.

The currency is now going to be set based on market forces where it previously had been set solely by the People’s Bank of China alone.

“Greater exchange rate flexibility is important for China as it strives to give market-forces a decisive role in the economy and is rapidly integrating into global financial markets,” the International Monetary Fund said in a statement regarding the Chinese action.

Some U.S. officials were harsh in their comments toward China’s action.

“For years, China has rigged the rules and played games with its currency. Rather than changing their ways, the Chinese government seems to be doubling down,” New York Senator Chuck Schumer told the BBC.

The U.S. Treasury’s response was more neutral.

“We will continue to monitor how these changes are implemented and continue to press China on the pace of its reforms, including additional measures to transition to a market-oriented exchange rate and its stated desire to move towards an economy that is more dependent on domestic demand, which is in China and America’s best interests. Any reversal in reforms would be a troubling development.”

As of noon EST, the Dow Jones Industrial Average was down 160 points and all major markets around the world were lower.

California Governor: Expect Epic Wildfires to Continue

The governor of California is telling residents to prepare for more spectacular wildfires like the Rocky Fire that’s burned over 65,000 acres in three counties.

“Fasten your seat belts,” Governor Brown said, noting that it’s been four years since California has been in drought conditions.  He called the fires “a real wake-up call” for Californians.

“These are very difficult times and a real tragedy for the families,” he said.

The worst of the fires, the Rocky Fire, has now burned 69,600 acres as of Thursday afternoon.  Firefighters say the blaze is 40% contained but also admitted that the fires have now claimed 43 homes and 53 outbuildings, almost double the total from two days ago.

Cal Fire officials are also closely watching the skies as “dry” thunderstorms are moving into the area.  A “dry” thunderstorm is one that has very little actual rainfall but dangerous lightning that could spark a new fire.

“The gusty and erratic winds from these thunderstorms could also affect the fire spread of the remaining active fires,” Cal Fire said.

Across the United States, 118 wildfires are currently burning as of Thursday morning consuming around 2,757 square miles of land.  August is considered the high point of the annual wildfire season and most wildfires have been in Alaska according to ABC.