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This didn't get much air time on consensus TV this morning, but that doesn’t mean that it doesn’t matter. The Chinese Yuan had its biggest down day since 2005.

Within the picture of the long term Yuan chart, Andrew Barber has highlighted the short term down move. The intermediate term "Trend" in the Yuan's strength is finally starting to deteriorate, and this is one of those big Queen Mary charts that the world will need to pay attention to if it were to turn.

The Chinese government cut interest rates for the 1st time this month, and as economic growth continues to slow, we do not think that the 1st cut was the last. Cutting rates should beget further weakness in the Yuan.

That would be deflationary for the world altogether. This is a movie that economic historians have seen before. It is global this time, indeed.