Debutant Neal Kimberley, External Forex Analyst for Activtrades, joined Zak Mir and Bill Hubard, Chief Economist for Bullion Capital, on the Tip TV Finance Show to discuss the global economy, specifically focusing on the USD and the Yuan.
Key Points:
Kimberley outlined that no matter what Draghi does, the Euro will still go down long-term.
Japanese banks have lent bucket loads of USD, according to Kimberley, who also added that they have got increased levels of Yen from QE and other BoJ policies. Thus he concluded that the USD is going up as Japan and other countries with USD denominated debt try and get hold of the US currency in order to pay this debt off.
He added that capital flows leaving China amount to around $600-800 billion since the start of the summer.
In terms of China, Kimberley highlighted that the Yuan has to weaken in order for the country to continue its transition from an export-led economy, to one that is consumption-led.