PHILADELPHIA—Nationally syndicated host and biblical investing authority Dan Celia said today that Asian markets are being “beaten up” badly, as the yuan has devalued, reaching a level not seen in over seven years—7 to 1 against the U.S. dollar.
“The question is this: Is China manipulating the currency?” Celia said. “I believe this is probably more of a political fallout as we continue to see the yuan devalue, whether the government wants it to go this level or not. Certainly, this will help them in the trade war. China has said it will cut back on agricultural products. They are buying from the U.S. amid these new tensions between the U.S. and China, which obviously makes our products going there a lot more expensive. But certainly this will take an economy that is on the verge of collapse a little closer. This is very dangerous territory.
“We are seeing our own U.S. bond drop dramatically,” Celia added. “We may see levels we haven’t seen in a very long time as we watch more and more money begin to flow into bonds. That seems to be the trend around the world right now. The German bond to yield is down another one-half of 1%—amazing. Why do we care about German bond yield? The German currency is one of the most highly traded currencies around the world, and, of course, this indicates that the appetite for risk is dropping dramatically, as money flows out of risk investments, even willing to take a .13 negative yield. In other words, it’s costing money to deposit your money just for the sake of safety. That tells us a lot about the global markets. No doubt this is going to be a difficult week for traders and global economies everywhere, including right here at home.”
Celia discusses these and other global and economic headlines on his daily, three-hour “Financial Issues” program, heard on about more than 650 radio stations and several television networks nationwide.
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