this is bullish for US companies because their products will now be cheaper to the 1.3 billion chinese trying to buy it...that is what the market is indicating on its run up after the news.
conspiracy??? geopolitical aspects of this dynamic are extremely important. if that appears conspiratorial so be it.
The us inflation will rise, many chinese sweet shops will be bankrupt (they now survive on 3-5% profit margin). But I guess we have to wait a year to see the full impact.
IMO: Higher oil prices as the yuan is worth more, ie oil is cheaper to China so they can afford more or maybe if its price in dollars holds it will be less costly to China; Higher US interest rates, including mortgages, as China buys less US bonds and this should slow down US economy; Uptick in US inflation as Chinease imports get more expensive and oil goes up also; No increase in US jobs and maybe a decrease as higher interest rates slow economic activity. Jobs shift a little from China to other low cost areas, maybe Africa/India? Bigger trade gap as US keeps importing from China (short term, where else will the goods come from?) DS
It's a two percent revaulation, it won't do squat in the overall picture which is what most of you are too blind to see.
People like to make up drama. We might see a rise in inflation but the yield curve is predicting deflation. You can't have both! Truth is, no one really knows what's going on right now.