China will tighten monetary policy next year, according to an announcement made by the nine-member Politburo.
The announcement made through the state New China News Agency, said China would shift to a "prudent" monetary policy from a "moderately loose" approach.
China appears to already be slowing money growth. Any further money tightening will most assuredly send China into a recession. It will make Chinese real estate and stock markets very vulnerable to decline. As is always the case when money manipulating central bankers stop their money printing and an economy attempts to stabilize to a non-manipulated environment, the liquidation of the manipulated pseudo boom brings on the crash.
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