Global trend forecaster Gerald Celente was the first to forecast that China’s crackdown on digital-currency exchanges was part of a larger strategy to devalue the yuan and, as a result, drive up the country’s exports.
“China has placed restrictions on Bitcoin and other digital currencies because the yuan has been growing very rapidly,” Celente said. “You are going to see a devaluation of the yuan so they can increase exports.”
Making his forecast weeks before The Wall Street Journal reported September 29 that the “Yuan falls again on policy shift,” Celente predicted that the Chinese people, seeing their currency lose value, would be drawn to Bitcoin and other cryptocurrency investments.
Celente repeatedly made that forecast on his nightly Trends In The News broadcasts, as well as appearances on King World News, RT’s Boom Bust, Kitco and numerous other media outlets.
After hitting a nearly two-year high in early August, the yuan has dropped more than 3 percent of its value against the dollar. China’s growth decelerated in August for a second consecutive month and is on trend for slower growth in the third quarter.
TRENDPOST: In 2016, when the yuan was suffering devaluation, the Chinese people turned to Bitcoin as an investment alternative, controlling some 93 percent of the global Bitcoin Exchange market. That sent Bitcoin prices soaring. Today, with its new restrictions, it has fallen to under 5 percent.
As Celente said: “If I was a gambler, I would have shorted the yuan because this is just the beginning of it going down. They’ve got to keep this Ponzi scheme going over there with a debt-to-GDP ratio of 300 percent. They have to keep pumping out those exports.” And to do so, they have to push the yuan lower.
In addition, gold may emerge as a safe-haven investment for the Chinese people as the yuan declines and digital-currency investment has been effectively cut off.