|By Matein Khalid| Even as China’s President meets the capo di tutti capi in Seattle, its manufacturing PMI falls to 47, a post Lehman low, with new export orders in a slump. I found it significant that the offshore yuan fell 200 pips to 6.4346 after the PMI. This proves my core argument, outlined a month ago. The Middle Kingdom will respond to its economic decline and financial market carnage with massive credit creation, exactly as it did in 1989 (Tiananmen), 1997 (Asian flu) and 2008 (subprime/Lehman). King Dollar gutted the competitiveness of Chinese exporters since mid 2014. The Politburo and the PBOC cannot allow this to happen again. Expect the yuan’s decline to accelerate to 6.56 by year end 2015 and 7.20 by end 2016. Like the Fed in 2008, or the ECB in 2014, the Chinese central bank has recalibrated policy to “lender of the last resort” mode.