PALMETTO STATE PARTICULARLY PRONE TO LATEST CURRENCY MANIPULATION
We’ve written previously regarding the delicate interconnectivity between South Carolina’s economy and that of China … and even had some insightful guest commentary on the subject.
Well guess what … it’s time to revisit the Palmetto State’s proximity to China’s exceedingly volatile markets.
Last night, China’s largest stock market tanked – shedding seven percent of its value and prompting another round of currency manipulation from the quasi-communist nation’s central bank.
Given South Carolina’s heightened exposure to Chinese currency devaluations – the Palmetto state’s economy again finds itself in an especially prone position. How so? Well, as the U.S. dollar gains strength against a devalued yuan, the price of American goods is going to surge. That means fewer exports, and fewer exports means fewer jobs.
We wrote extensively on this issue back in August, revealing that 2.2 percent of the Palmetto State’s economy is tied to Chinese exports – the second-highest percentage of any state in America.
“Looks like South Carolina is in for a bit of a rough road this year,” one observer noted.