Before we get to the brilliant sayings of the day, a few words about the latest Chinese moves on the yuan (or renmimbi, whichever you prefer). Also, delaying the delivery of a come-on title is a 'tease', but stay with me since one of the comments is truly idiotic.
Almost two years after the re-peg to the dollar, the People's Bank of China announced it would "...reform the RMB exchange rate...and enhance the exchange rate flexibility." Foreign markets rose substantially on the news and the US market responded in kind on the opening in NY (but it's not how it opens that is important, it's how it closes).
What it means is the Chinese currency will float within a narrow band in reference to an undisclosed basket of currencies, not just the dollar, and the euro will probably be included. The timing of the announcement shouldn't be too much of a surprise as the G-20 meets this weekend in Toronto. The politics of the move are obvious. This will head off any further talk about currency manipulation, at least for the time being.
The exchange band will remain the same on a daily basis (+/- .5%) and the RMB will be allowed to gradually increase in value. There will not be a large onetime adjustment against the dollar. There is a small school of thought that since the undisclosed basket of currencies will undoubtedly include the euro, if the euro continues to fall the dollar might even appreciate. That is not likely to happen but worth putting away for consideration. If the yuan appreciates as expected several consequences will occur.
The threat of a trade war between the US and China is greatly reduced.