Last week, China devalued its currency by 4.4%. Someone in Kansas City or Seattle may ask, "What do I care?" Dear friend, if you or someone you care about loses his or her job and livelihood, you'll care...
A 4.4% devaluation means that Chinese goods in America become cheaper, yet American goods in China become more expensive and less competitive. As a result, American manufactures will sell less or be forced to cut prices and therefore profitability. The immediate result is that the US trade deficit will be worsened by $19 billion, 190,ooo American jobs will be lost, and America's productivity (GDP) will be reduced by 0.14%. This is immediate.
The Chinese are clever and cunning; they are saving their own economy at the expense of the USA. The ruthless game of currency manipulation could continue, for some analysts forecast devaluation of the Chinese yuan reaching 15%, which means then it will reduce U.S. GDP by 0.48 percent ($99 billion), increasing the trade deficit by $66 billion and eliminating 640,000 U.S. jobs.
Do you realize what all this means to corporate profits and Wall Street? What's more, this scenario is unraveling right before the end of Shmitta year. What does this all mean?
Some people say that the USA is so angry at China, that a covert war has started. The mega-explosion in Tianjin happened right after China devalued the yuan. An old CIA expression says that there's no such thing as coincidence. Did the USA sabotage Tianjin? Many say yes.
At any rate, two months ago, we warned about an impending economic disaster in the USA. This is all part of the Geula script, where Hashem wants us to put our trust in Him and not in the dollar.
What's the message here, and particularly in Elul? Hashem wants us to realize that our income and our jobs are all wobbly reeds that we can't lean on. He wants us to put all of our trust in Him.
What's more, who gets blamed for everyone of history's economic crises? You know the answer. Hashem wants us all to come home; He wants to put an end to Diaspora and exile, so let's not hold up the show.