“We might soon come to question whether China is going to be able to maintain its currency peg to the dollar,” he wrote.“When we look to at where the next market crisis will come from, we should be looking to China. There is a near consensus that China will supplant America this decade. We do not believe this.”
Regarding the currency devaluation, I have been saying that to my students since China announced it would move to a managed peg. I said it on this blog 4 months ago.
I have been a China skeptic for much longer :).
According to Hendry, China's demise will export a crisis to Japan via Japanese corporates.
Hendry says he is more bullish on US growth than most- well no one is perfect.