Hugh Hendry, I Would Recommend You Panic

Even if China doesn't devalue, a euro breakup, drop in trade and passport restrictions are more likely than not given the current trajectory of social mood. If a 20% yuan devaluation is enough to blow everything up overnight, however, then I would recommend Mr. Hendry take his own advice and panic.

ZeroHedge: Hugh Hendry: "If China Devalues By 20% The World Is Over, Everything Hits A Wall"
Tomorrow we wake up and China has devalued 20%, the world is over. The world is over. Euro breaks up. The world is over. The euro breaks up. Everything hits a wall. There's no euro in that scenario. The US economy, I mean everything hits a wall! Everything hits a wall!

The dollar strength that you imagined is devastation because you just eliminated dollars. They're a scarce commodity. You've wiped them out. And China is a pariah state.

It's a 'Mad Max' movie, right. OK, China gets to be the king in 'Mad Max' world. How appealing is that? There is no world after the tomorrow where China devalues by 20%. There is no world. Yeah, it's looney tunes to believe that, people say, 'oh wow, they needed to catch a break.'

Their share of world trade has never been higher. They're facing no pressure, immense terms of trade improvement, and you would destroy world trade. World trade is down 25%. You would probably have passport restrictions, the world is over.

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