This is getting interesting.
Overnight, Chinese authorities drained liquidity from the financial system. And the PBOC lifted the auction yield on its one-year bills by 8 basis points for a yield of 1.8434 percent.
One drain is not enough to stop China's rapid money growth, if the PBOC adds reserves again in the near future, but if this is the start of a new PBOC policy, then prepare for Global Panic II. China has been the only major country adding liquidity, if it stops, the distortions of China's money printing boom will be felt around the world.
Wenzel,
ReplyDeleteWe're tracking Shaun Rein's anti-Chanos/China Bubble comments as a possible topping indicator for China... timing couldn't have been better on his recent Forbes.com article!