The dollar has been in a free fall against almost all currencies, including the Chinese renmimbi.
For the first time the Chinese government pegged its currency to the U.S. dollar in
2005, the exchange rate has fallen below 7.
The renmimbi has now gained more than 18% against the dollar since 2005.
The health (or lack thereof) of a country’s currency is a pretty accurate barometer of
the underlying economy. If that’s true, the U.S. is in trouble and China is full steam ahead.
