Currency devaluation - China decoupling

[VinniOettinger30]

Grab the audio from this video at tubepull doht cohm.

[danisotk]

im gonna buy myself some yaun.

[LastReplaySC]

if china doesent supress is curreny and let it rocket, the chimerican deal will die, because chine will stop buying US debts almost instantly. who will the US sell their worthless $ to then?

china is slowing down the process of a global crash and at the same time starting to invest in their own country, they are doing all that what the US just ignored to do.

[taineasy]

Dr. you may want to have look at the charts. We are close to the 5th pivot point of a double broadening top on all the majors. As you are surely aware Dow theory is clear on what happens next. Why would China not let their currency fall to increase their margins to offset the falling export volumes. Do you not see a world wide trade war brewing?

[Mycochef]

Good Point! A world wide trade war is imminent. China has been protecting their trade for years with an artificially low Yuan. Now that their economy is hot and their needs and wants are ever increasing the US is now prepared to "play" the same game with the USD. The time seems to be ripe for the US to use this tactic with a very "hungry" 1.3 billion market.

[PrepNow]

Dear Dr. B,

Please, we are all waiting for a new video.

Thanks.

[Mycochef]

I guess no more doom and gloom hence no more videos!

[PrepNow]

@Mycochef

I really want you to be right. No one in their right mind wants doom and gloom

but the wise never ignore danger.

"A prudent man sees danger and takes refugee, but the simple keep going and suffer for it."

Proverbs 22:3

If you feel the recession is over and there is no gloom and doom... what are you doing on this blog anyway?

[Mycochef]

I'm here to alert the fools of "doom and gloom". Forget the fancy charts, the complex data and economic theory hypothesis. Just use common sense and you'll prevail.

[IronicallyVague]

@Mycochef

Thank You Hanoi Hannah!

[TTek]

"How do the German people feel about having to bailout Greece? "

well... we don't like it! >:(

[motoyen]

How do the German people feel about having to bailout Greece?

[comedytracker]

The Chinese are ugly, disgusting communists who praise idolatry and censorship over common sense and human rights and are racist against good looking white people for the simple fact that they invented, discovered and designed nearly everything (MOST importantly, FREE SPEECH).

I am proud of my forefathers and what they have left to me which I will diligently build upon myself. I hope you feel the same way towards your ancestors and I hope you feel for the rights of others in your community.

[mn8aol]

How do you decry communism, praise our forefathers and embrace the heresiarchal paradigm of "feeling" (over facts) for the "rights" of the "community" and "human rights"?

[comedytracker]

I FEEL for the rights of others because in turn, they feel for my own rights.

How exactly is having respect and preserving the rights of others heresy, and why exactly does that matter (especially since I am an atheist)?

[mn8aol]

The heresiarchal paradigm is grounded in the dialectic (sensuous) whereas the patriarchal paradigm is based on diadic, fact. Black is black and white is white. Neither torture, maltreatment nor intimidation can change a fact. To argue the point serves no useful purpose. - POW Major David F. MacGhee responding to brainwashing attempts, by the North Korean army, January 19th, 1953. If you're preaching in the dialectic, it makes no sense to condemn a communist. They have you hook, line, sinker.

[comedytracker]

My god you are absurd, verbatim doesn't help you idiot.

Not only are you typing utter shit, you probably also believe it.

Communism only works on paper, it has never worked in reality why? Because it is too easy for an abuser of power to achieve a status of power. Communism is a kind of institutionalized oligarchy.

[mn8aol]

The hegelian-dialectic or consensus process is a soviet form of government. It is practiced in this country from one end to the other. Communism is being practiced all around you.

[modelmark]

@comedytracker

free speech is gone everywhere. The difference is that in the west as long as you do what your masters say in their laws, you can say whatever you want. As long as you do not act on it and sacrifice your income on their alter

[Mycochef]

Here we go again with the gloom and doom pundits. Don't they understand that the USD needs to be devalued as an incentive to buy fewer Chinese products that have been flooding our market. This will also permit China to buy cheaper US goods which will allow them to expand their economy as their apetite for luxuries increases. So, what will happen is that the US will export more, consume more domestic products, creating more jobs and wealth and get on the road to long term world economic growth.

[foolcow1976]

I'm not sure that mister jberni would deny any of these things you list. He says that the U.S. dollar will lose purchasing power, and you retort that it should lose purchasing power. Do you actually disagree with anything he said in this video?

[Mycochef]

I guess what I'm having a problem with is the prediction of a severe economic downturn due to a devaluation of USD. As we are forced to produce and buy more domestic items, even at higher prices, it can only help our economy not hamper it. Little wonder that China "hates" our devaluation effort. Their exports to the US will be affected. Dr. jBerni says we will pay more for products such as fertilizer from China, this may be true! But we may also start making our own fertilizer or "levis" again!

[PrepNow]

China's exports to the US will be affected and some factories will go under and so forth but China as a whole I don't think

will collapse. The stuff they won't be able to export to us, their own citizen's will be

able to finally afford and enjoy some of the stuff they've been making for us. This will happen as their currency will become worth more. Just the way I see it.

[foolcow1976]

@Mycochef The whole discussion hinges on the exact definition of "severe economic downturn." Yes, the U.S.A. will start producing things again, eventually, which is long-term a good thing. This doesn't alter the fact that life will become far less pleasant for people who hold and use U.S. dollars, i.e. Americans. If something you own loses a huge part of its value, that is obviously a bad thing for you. To describe the situation in pleasant-sounding phrases doesn't change that.

[Zimba9810]

@Mycochef yeah and we will create more factory jobs making $1/hr so we can export the levis to china ....oh the good times...

[PrepNow]

"So, what will happen is that the US will export more, consume more domestic products, creating more jobs and wealth and get on the road to long term world economic growth"

I agree with this statement, but too bad this will take a couple decades until it gets going.

[Mycochef]

Canadians know the recession is over! Perhaps we should all now take their lead and join the "RECESSION IS OVER MOVEMENT". Like the weather, economic forcasting models have a dismal track record. They're just mental stimulus "fun activities" for University students and professors, but far from being realistic or good predictors of anything. If you really want to forecast or predict just use "common sense". Try that model.

[demondough]

hahaha...i cant wait till this bullshit mismanaged world economy crumbles to dust..this all leads to one road...world citizen card please..lolol love the germans..

[lizcor68]

Thank you for such interesting and helpful videos. I have been watching you for several months now, and am your newest subsrcriber.

Again, thank you, and enjoy YOUR coffee break.

[stephenrblv]

I think you are grasping Doc. Price Inflation and Monetary Inflation do not correlate as we know. The News I read on this yesterday said the opposite, that China has no plans to float the Yuan.

The Bankers control the whole show. This notion they are about to lose control is baloney. If it came to that (which it won't), believe me they would be the force making it happen like 2 years ago with mark-to-market.

Enjoy your coffee.

[FrankinHolland]

Germans crack me up.

[geir44]

Well, I guess I need a coffee break now.

[dojufitz]

To survive this crisis.....you must learn one thing.

Take your steel cap boots that you no longer need to work with.....put them in a big pot and add some water and a little salt.....

Steel cap boot soup is quite nice......

[PARADIGMSHIFT2009]

I believe I heard you say deflation. I know deflation comes right before inflation right. So, shouldn't prices go down before they go up?

[Fightforfreedom99]

We have been in a deflationary period for the past year+ in the USA. Some believe that the deflationary slide will continue for some time. However, I disagree. Cheers and GL

[vantagepointmoon]

'Prices' is a very general term, what government is reporting as inflation refers mostly to the consumer goods, what financiers are referring to when they say 'deflation' is referring mostly to the asset prices. So, you may have a deflation in asset prices and an inflation in consumer goods (worst case).

[beltane3]

I have something to say...Chinese Yuan appreciates against the dollar? Fine. I wish it would. Not everything on the shelvles in the US is made in China. Their goods are inferior, they export garbage, and currently the true social costs of that refuse is not reflected in the price tag..I welcome that it soon will be. Also...an economy is an organic unit, constantly changing & adjusting itself-this is why things just don't fall off a cliff, such actions are instinctively avoided.

[kultbagusa]

The reason for chinese goods to be inferior is because the western consumer is a moron! Just look how they stuff their cars with plastic crap. As long as it's CHEAP! Most of that shit is broken by the time they turn into their driveways. And what do they do? Wait for their next paycheck, go back and by more crap. Retards! Fat, ignorant, dumb, judgmental, conditioned, sorrow losers. The chinese are not the least motivated to improve the quality of anything for those stupid mouthbreathers!

[reallysecretusername]

@kultbagusa lol that is bullshit. i have a lot of stuff made in china and it never broke. stop being so ignorant and judgemental. just because something is made in china doesnt make it bad. and the avarage westerner isnt fat, ignorant or dumb.

[kultbagusa]

@reallysecretusername very well argued! You totally convinced me. In fact I really believe now that Obama is the man to fix everything and I should just go on with my life as usual and let the politician do their job.

Maybe I go and get myself an Ipad today.....Hell, why not......

[reallysecretusername]

@kultbagusa fucking moron. who mentioned obama? put your tinfoil hat on and take your medicine.

[kultbagusa]

@reallysecretusername you seem to be a very likable guy, one of those great debaters of our time. And as far as I can tell you seem to fit precisely the subscription of "western consumers" that I gave in my first comment.

PS: please keep your insults to your self, it is not my fault that you are frustrated !

[alex49698]

@kultbagusa thats why there favorite brand is GM....

[timmakuk]

I'll second kultbagusa. The reason why Chinese goods are crap is because Americans like to buy cheap crap. If Americans instead, borrowed money to buy higher quality goods, the Chinese would make higher quality stuff. The basic difference in cost of labour hasn't changed. Since the US is broke and has to borrow to buy goods, oil food, it buys cheap. Simples.

[SCLARK2112]

Agreed. Lots of empty Wal-Mart shelves here in Chiefland, Florida too. I'm 50 years old and I've never seen anything like it in my lifetime. Also tons of foreclosures and commercial real estate sitting empty everywhere. Pay no attention to the mainstream media and lying politicians , there's NO RECOVERY in sight.

[nitdiver5]

@SCLARK2112: no one has ever seen anyhing like this. We are fast approaching the final collapse of the global system that will the Antichrist to consolidate power over much of the earth. Psalm 90 says a generation is 70 years. Ezekiel and Jesus said the generation that sees Israel come back to the land will be the last. May 1948 + 70 = 2018. Read Daniel chapter 7 and you will get a description of the New World Order. It is beast #4. I do believe the rapture is imminent.

[GohanMH1]

What happens to the Chinese economy if the yuan goes up?

Much is discussed about a possible bubble bursting in China...could a slowdown due to lower exports be the trigger?

[SewEyeSea]

So would now be a good time to acquire Chinese Renminbi? I'm not exactly sure this is even possible for the average person...

[iknownothingnow]

JB. Good vid.

China told us a month ago that they would decouple. This is to fight a real estate bubble they have. They may couple back again though. Expect that.

Germans do not want to bail out Greece. Sarkozy is postering that he will lend money. Don't know what the French citizen says though.

If you get a chance, talk to Dr. Philipp Bagus, economics professor in Madrid. He has some good insight about PIIGS - specifically that the bail out has already started.

[tokyorealestateman]

great work

[vsaldanas]

A month ago it took 6.8 Yuan to get one dollar, by the summer it will be 5.3 Yuan to get one  USA dollar, by December it will take 3.8 Yuan to get One USA dollar!!!

[McDohnuts]

Thank you for making time for this video.

How is you apartment are you nearly finnished with moving and decorating your new place.

We all appreciate it very much, also look forward to see you next time.

[NovusChaoMundi]

Buying Time for what exactly?? You think that the dollar will collapse.

[hopaloop]

jberni, tell me where we are on the lay man,s scale of "how fucked are we" 1-10.. should i be learning how to make a road kill stew yet..

[aw3212]

lol

[PrepNow]

There is inflation already but it is "hidden." For example, I have noticed for several years already that there is less and less stuff when you buy something.

I buy paperplates (for emergencies and

I alway have a lot of people over) well the pack of 100 paper plates is still the same price but there is only 70 plates in pack now. That is really 30% price increase.

I see this with food and a lot of other things.

[ILovelisanova]

never thought about that. They bought us time! We did get something for all that money.

[looseal22]

some ppl don't understand sarcasm

[He101A]

Since China doesn't want U.S. dollars, everything will be made in Africa. Instead of made in China, you will made in Africa. Africa will be buying U.S. treasury bonds.

[timmakuk]

What makes you think Africans will buy into the US Treasuries Ponzi scheme? Americans are sounding like Wimpey from Popeye: "I will give you two hamburgers tomorrow if you buy me a hamburger today". Any takers?

[He101A]

@timmakuk It was a joke, LOL.

[donniebrasco24]

if those hamburgers are made of gold, i'm a taker...

[PrepNow]

Thanks for posting. I always rate and click on the ads.

Forgive me but I am not the smartest person on this site...

... from what I understand, it will be better

to buy more supplies and goods before it will become even more expensive? We

have about three more years before we

will really feel the price increase from

China?

[centervilletn]

i believe the US is putting presure on the Euro and pound in an effort to force the EU to come to the table and peg to the dollar...they are waterboarding the euro...

[centervilletn]

im planting potatoes today....the rest of the garden goes in over then next 3 weeks...so at least my family will be eating...last year we stocked our ponds with fish....and we have purchased 3 calves for beef and have chicken for eggs...hopefully we will be able to utilize food dollars for other expenditures and improve or atleast maintain our current standard of living as inflation begins in ernest.

[metaltect]

gotta watch those poachers...

[comedytracker]

Somebody said that we should impose a temporary solution to this problem:

Establish a fixed exchange rate for 3+ months.

[centervilletn]

Other people disagree with me but i think that "pegging" the Euro to the dollar will be a mistake for both the EU and the US because that puts all monitary policy in the hands of the central banks and takes monitary policy out of the hands of the governments.....leaving the people /citizens with out power to change course via elections because central bankers are not eleted....taxation with out representation..inflation is a tax.....

[aw3212]

I'm not sure our vote means anything anyway. The central bankers are in charge now, but i agree it would give them more power

[hopaloop]

have you seen Rob Manard the macnificent deception. If not, you'll love it. you'll realise just how powerful we really are. once you know how.

[looseal22]

/watch?v=UiiG4Eaok5Y

[centervilletn]

i agree..but as it stand now we can at least put the occasional obstructionist in office...heck we wouldnt even know whose house to burndown if they central bankers had all the power

[Jo1Nobody]

Excellent to have you back. We are living in very interesting times. If Life could speak it would say " Evolve or Perish". Evolve here means adapt to the new changes that are coming. Wanting things to go back to the way they used to be is to Choose the Perish option. The obstacle that appears to stand in the way, is the way.

Thanks J for your honesty, calmness, and compassion in sharing your knowledge with those who are interested in listening and learning from it.

[raincityusa2010]

I disagree with some of your analysis...raising the price of imported Chinese goods will be a great thing for the USA, we should smack a 20% tariff on them as well to spur local innovation and consumption. We have several new regional business's starting here, a knife manufacture, power tools, and a plastic's firm in the last year...in my opinion, in 2-3 years time, you will se thousands of "made in the USA" small business's starting to replace the Chinese crap being shoved into America

[looseal22]

@ raincity I agree with you whole heartedly. But from now until US manufacturing can get going again, Chinese made goods will become more expensive.

And when the USD is no longer the reserve currency to buy oil....

[whiskerchild]

Thanks for warning us.

[aw3212]

you mentioned the US has bought us 3 years for preperation, but this is a half truth. they bought WALL STREET and rich bankers 3 years meanwhile selling to the average middle class and lower citizen that things are great and getting better.

[looseal22]

this is true

but at least we have the truthers here on YT

[KnowledgeDriven]

@looseal22

ya, i was commenting on another blog (after seeing this vid) that if those a-holes didn't ramp up the fraud & corruption to the point it was ringing in our ears, this truther community, zerohedge blog, etc. would probably never have reached necessary critical mass.

everything is totally fuct, but indeed interesting times. even the most vile shit today seems to have at least one nugget of truth/love/necessity... arghh..

[pfowler20]

hard to tell what will happen but deflation may be still a possiblity if the markets crash

[EvilUSAandthe911Lie]

Time to buy some yuans!

[jberni1]

@Pina206 Depending on how much risk you want to take.

I believe best time to buy was last April (as I announced)

[Mr1openmind]

Thank you. Your videos are appreciated!

Gold? The only real protection?

[meikagirl]

I agree! The US market is going to take a hit end of April or early May.I'm going to short big time!

[wdcsucks1]

excellent video quality dont worry!

[toshibavoodoo]

great

[Eraser7622]

always love a jberni production in my subscription updates!! Thanks

[CTOL1]

Good report, nice to see you again

[acetylslicylsyra]

Maybe is time to move some more my savings my wifes saving account in china. I was hoping the dollar would have have time to bring the rmb down 2008 low levels, maximizing my returns from the move in a depeg. Anyway, we live in interesting times.

[scutter4christ]

Thank you Mr berni. As always we appreciate you taking the time to care for others by sharing your wisdom!

[2528997]

What kind of camera are you using?

[lisajason111]

Yuan is set to become 2nd Yen, and China the end Japan. Prices in china domestically such as for porks, cotton, soy bean, kitchen oil, iron ore etc. are controlled by the wall street. If China unpegs, China will be screwed!

[veritasfiles]

Glad to see you back after such a lengthy absence. It will be interesting to see what happens in the later half of April. Take care!

[mrzack888]

my business in China is going well, i don't need all this unstable economic bullshit.

[ABETRMAN]

Par Excellent as usual

Five *

[senses2000]

Now that the weather is good. Go out during the weekend and light a candle at night if you are against the New World Order. When you see a lot of light - it is time to act. Get to know your neighbors.

[capcom101you]

Thanks as always

[silverfuturist]

Thanks for posting! Do you see any disruption to supply chains and travel when this happens? I want to travel this spring but I also don't want to experience disruptions.

[suzettespencer]

Video looks fine.

[IronicallyVague]

Always refreshing to see an educated. intelligent & insightful look into the economy insted of people running around waving their arms in the air in panic & screaming like the other videos I've seen...

[captaintlc]

Thank you for the information of the markets.

[SpreadTheRev]

jberni, you are the man! Keep up the great work.

[skybirdbird]

thank you for your insight....

[vantagepointmoon]

so, Walmart will go bust when China depegs renminbi from the dollar.

[silverfuturist]

@vantagepointmoon Excellent theory, perhaps those who like to speculate might get big gains shorting Walmart's stock.

[SamuraiCommando]

I was wondering the same thing. And the cheap goods not being available to some of these remote communities are going to be a cancer in the states

[aw3212]

but won't China hurt itself just as much; afterall, we are their market still. I realize that they are needing us less and less everyday, but they depend on us to buy their CHEAP WORTHLESS CRAP!

[raincityusa2010]

@aw3212 agreed, I hope they do let thier currency float...the best thing that could happen to the USA is to stop buying Chinese shit...........

[looseal22]

But we haven't been buy their cheap worthless crap for awhile now...not in the volume we used to anyway.

Walmart has less on their shelves every day.

[johnboysrevenge]

looseal22, so true! The Walmart and Sam's Club near me have lots of bare shelves and w i d e isles. Stock up now on cheap imported goods while its still available and affordable. Here's my shopping list: bike tires & tubes, shoes, clothing, linen, CF bulbs, A/C filters, water filters, auto oil filters, air filters, anything consumable that needs replacing monthly, quarterly, annually, etc..Stop and think about all the imported items that make your world flow smoothly. Buy now!

[vantagepointmoon]

Yup, many retailers will be downsizing starting from the smaller, remote and lower-income communities. This is something that is probably already happening, but will be much more active when rmb starts floating as it might become unfeasible to deliver goods in such places with higher prices kicking in.

[SamuraiCommando]

Its this kind of news that really rattles me. Its so under the radar for normal people who dont pay attention to things unless its on the daily news.

[vantagepointmoon]

Most people in the Developed World these days lived only through the period of an unprecented prosperity (even if it's thanks to the asset bubble), so they never really questioned the fundamentals of the system that made this possible. The news like this seem to be insignificant by themselves, because their implications are systemic, hence will take place in the future. It's not the people's fault that they can't grasp the significance of such news, but it's still their tragedy in the end.

[SamuraiCommando]

No its definately not their fault. The "system" leaves the masses with little time to spare between obligations to question structure, authority, reality, and sustainability. People are like ants now.

[fal2grace]

Thank you very much for this post.

[Englandareshit]

Great video and I am glad you are making more video's again!!

I look forward to more detailed video's

[arka67]

Greece will have enough Money.... thanks to Merkel .

[jamiedore]

Good to see you again. Thank you for sharing your insight. It is much appreciated.