Kitco News – While many news headlines said it was a ‘surprise’ move by authorities to devalue the Chinese yuan, one trends forecaster said he was expecting it and more surprises are in store. Speaking to Kitco News, Gerald Celente, publisher of the Trends Journal said he was completely unfazed by the China news. He explained that on July 24, China’s State Council telegraphed the move when it announced a series of measures to pump up the economy and boost declining exports. ‘Although it wasn’t reported as such, it was clear to the institute the yuan would be devalued,’ he said. On Wednesday, China’s yuan hit a four-year low, falling for a second day after The People’s Bank of China devalued it by close to 2%. Spot yuan in China slid to as low as 6.4510 per dollar, its weakest since August 2011, after the central bank set its daily midpoint reference at 6.3306, even weaker than Tuesday’s devaluation. China has been implementing economic and monetary measures to resuscitate its flagging economy. The move by China shook the financial world, with Asian and European stock markets selling off. The weaker yuan will make imported goods into China—the world’s most populous country and the second-largest economy—more expensive. It will also make Chinese-produced goods cheaper on the world export market. But Celente believes that China can’t save itself and called it an ‘act of desperation.’ ‘That’s not going to get them out of this. You’ve got a bunch of rookies playing in a big game over there and they don’t know how to get out of it.’
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