2. China Central bank is slowing the sell-off foreign asset to buy yuan. The decreasing valuation of yuan did signal increased outflows of capital. The China Central bank initiated monetary policy to slow the devaluation rate.

3. There are risks for foreign countries hold large amounts of US debt. China is calling for a “diversified currency” independent of the US.

4. A depreciating dollar will raise the cost of living. Natural resources will cost more money.

5. A weaker renminbi makes Chinese exports more appealing because they cost less. China Central bank monetary policy of weakening its currency signals slower growth in their economy. In 2012, US trade deficit is $295 billion. Why are Chinese investors taking their money out of China? The Chinese government is guiding the renminbi lower at the same time “net outflow of capital” is according. The Chinese real estate bubble is deflating. China is exporting more high tech and communication equipment. The renminbi rose 5.5 percent against the euro decreasing exports to Europe.

6. China has $3.3 trillion in foreign reserves.

7. In 2011, US imports were at a high reached in 2008.

8. In 2011, the renminibi depreciated 5.6% against the dollar and 14.54% against the euro. China is devaluing its currency is the face of decreasing competitiveness.

9. Credit growth in China is unsustainable.

10. Chinese want to diversity out of dollar because the dollar is weak and the political risk is great. The Austrian dollar and the Canadian dollar could be the new haven for Chinese investment. China will move money out of the US reserves. Emerging markets will see the effect of the plummeting dollar and cry “foul”. The Chinese will look for a basket peg like IMF special draft rights (SDR) basket. (http://www.creditwritedowns.com/2011/07/china-revaluation.html)

11. China keeps the yuan valuations lower by keeping other currencies higher by creating artificial demand for the other currencies. China buys dollars increasing demand for the dollars. The dollar appreciates and the yuan is undervalued. The US trade deficit increases because the yuan gets and advantage.

12. Japan took measures to keep the yen from appreciating against other countries.

13. South Korea, Brazil, and Singapore doubled taxes on capital inflows keeping their currencies from appreciating.

14. In 2012, yuan hits 6.3484, the lowest level against the dollar

15. Banks are bearish on the yuan