Red China: Famine & Bankruptcy

The gimlet-eyed money-changers on Hong Kong's Connaught Road and along the nearby Macao waterfront traditionally buy—at carefully reckoned prices—even the most dubious currencies. But last week they were shaking their heads at fishermen and smugglers selling Communist China's yuan. For the yuan had dropped to an alltime low. It began its spectacular decline last year, took its biggest plunge since January, when the news of China's food shortages first leaked out. Overall, it has dropped 50% in value from a year ago; buyers can get all they want at 75¢ U.S. for...

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