Is It Time To Take a Deep Breath?
Real Vision: Finance & Investing
00:00
The Chinese Yuan Is at 7.35 to the Dollar
The Chinese yuan has appreciated significantly. The most important move is something that just came out, which says that the government is going to provide a stimulus package for the beleaguered real estate sector of the country. But here is the issue with that portion of the package: As you give more subsidies, you're going to also increase the overall level of debt in China. So the risk here is that you get some amount of temporary advantage, temporary improvement exchange for a longer-term issue with higher level of debt and problems ahead.
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