China devalued its currency so much show today that it crossed the hypothetical “line in the sand” that will likely cause a response from the Trump Administration. Check out the huge move lower by the renminbi today:

Chinese renminbi versus the other major currencies of the world.

China’s currency is now trading at more than 7 yuan per U.S. dollar for the first time in more than a decade!

Not only did China devalue the yuan, it ordered states to stop purchasing U.S. agriculture products.

Like I’ve said for nearly 2 years now, China is our enemy. China has no interest in resolving the lop-sided trade imbalance so that trade between the U.S. and China is more fair.

Beijing is now using the yuan as a weapon in the trade war so investors have fled out of stocks and other assets. It’s as simple and straightforward as that.