Countless factors influence the global financial markets, but right now the biggest one is China's yuan devaluation.
Ever since August, when the Chinese central bank shocked the markets with a steep yuan devaluation, the Chinese currency has exerted a powerful - and mostly downward - pull on stocks.
Here's why the yuan carries so much weight - and what will happen next...
Countless factors influence the global financial markets, but right now the biggest one is China's yuan devaluation.
Ever since August, when the Chinese central bank shocked the markets with a steep yuan devaluation, the Chinese currency has exerted a powerful - and mostly downward - pull on stocks.
Here's why the yuan carries so much weight - and what will happen next...
It's almost certain a yuan reserve currency will become reality 11 months from now, triggering a foreign currency shift of as much as $2 trillion - an existential threat to the U.S. dollar's status as the world's primary reserve currency.
Last week, Bloomberg reported that International Monetary Fund (IMF) officials have told Chinese officials that the yuan will join the organization's basket of reserve currencies "soon."
Here's why this will make the yuan a disruptive force...
China has long-planned for a yuan reserve currency to undermine the U.S. dollar.
The People's Bank of China (PBOC) made its first move as far back in 1994 - more than 20 years ago.
And the years of planning have paid off. We're only a year away from a yuan reserve currency now.
Here's why this economic shock will send the U.S. economy into a Great Depression...
Until this week, a Fed rate hike at the September FOMC meeting seemed more probable by the day.
U.S. Federal Reserve Chairwoman Janet Yellen had hinted for months that the U.S. central bank finally was ready to raise interest rates above zero for the first time since late 2008.
Then the Chinese central bank devalued the yuan.
Here's how that bombshell will affect the Fed rate hike...
Stocks tumbled again early today (Wednesday) after a second round of yuan currency devaluation by the Chinese central bank.
The Dow Jones Industrial Average fell as much as 250 points, or 1.5%, in Wednesday morning trading. That decline followed a 193-point loss (1.1%) Tuesday.
And it raises the question of whether the yuan devaluation will trigger a broader U.S. stock market crash.
In an effort to boost exports and spur growth, China's government continues to manipulate its yuan currency.
Wednesday, the PBOC cut the guiding rate for the yuan for the second consecutive day.
Here's what the manipulation of the yuan currency means for investors...
