Yuan crash possible?

When asked about a sputter or collapse in the Chinese economy, Faber stated, “I live in Asia and all I can say is I observe a meaningful slowdown in business activity recently and increasing corporate earnings that disappoint.” When asked if he was aware of capital flight out of China, Faber replied, “There’s a huge capital flight, there’s no question about this.” When asked why the Chinese are panicking to move their money out of China, Faber responded, “That is a very good question because, you see, the bullish analysts will tell you will tell you, ‘Oh, if the Chinese economy slows down they are going to print money and lower interest rates and ease monetary conditions.’ But if that happens, then obviously capital flight will increase, especially if, unlike all of the expectations, the Yuan or the Chinese RMB begins to weaken rather than to strengthen against the US dollar. So that could actually accelerate the decline or let’s say capital outflows and declining asset values in China.
Listen to the Marc Faber interview at King World News.

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