If China is hoping to stimulate its economy in the near future, it’s going to need a little help from its “frenemy” – the United States and the U.S. dollar.

As Hedgeye CEO Keith McCullough and Senior Macro analyst Darius Dale explain in the clip, the last time China stimulated its economy, it was the largest in its history.

At the same time, the U.S. was devaluing the dollar – something that would have to happen again for China to get anywhere close to the desired stimulating effect.

“The Chinese yuan is down 8% year-over-year against the U.S. dollar. One of the main reasons for that is that the dollar hasn’t gone down,” McCullough explains.

“What the Chinese really need us to do is to devalue and debauch our currency, so they can get more aggressive. The Chinese are short dollars. They have a developing current account deficit that they have to fund in dollars.”

Watch the full clip above for more.

China Stimulus? Why Beijing Must Wait For A Dovish Fed - the macro show