China suddenly devalues its currency

We have a situation that is developing in China. I mentioned to you last week and the week before that China was building up its currency, building up its reserves of U.S. Dollars for the purpose of one day making a play to become the world's currency- replacing the U.S. Dollar. But China abruptly devalued their currency last week. The Renminbi was decreased by up to four percent as part of a shift to a more market oriented approach and, it helped exporters. But that surprise move set off some sharp stock falls. You see, the Chinese central bank is fighting the downward pressure about purchasing large sums of Renminbi, selling dollars from its currency reserves. So you see what happened, folks. They sort of backed themselves in a corner and in order to get out of the corner, they had to devalue their currency, as well as sell off some of their U.S. dollars. And it created fireworks in some of the markets around the country.