Here's The Definitive Chart On China's Need To Revalue The Yuan

chart

This chart from Geo-Graphics makes China’s rebalancing dilemma look really simple.

When the yuan depreciates (’09-’10), household spending flatlines.

When the yuan appreciates (’05-’08), household spending surges and all of a sudden China has a bonafide consumer class.

As for why China needs to rebalance, check out Why China Is A Debt-Burdened Builder Of Bridges To Nowhere >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.