China's central bank pledged to maintain loose monetary policy in a mistaken belief that it will support true economic recovery and ensure sustainable credit growth without resorting to heavy-handed quotas to rein in a surge in lending.
In a statement the People's Bank of China Vice Governor Su Ning said the central bank "will unswervingly continue to apply appropriately loose monetary policy and consolidate the economic recovery momentum."
It make take years, but the ultimate result of this money printing will be a dramatic downturn that will test China's move towards free markets.
"It make take years, but the ultimate result of this money printing will be a dramatic downturn that will test China's move towards free markets."
ReplyDeleteThat's such a worrying prospect.