China – Guilding the Lily

As I am writing an article the Chinese have again intervened in their currency – this will be the sixth time since November last.


The situation of the Yuan and the strengthening USD may have indeed been a consideration of the US Federal Reserve at their September meeting – the simple fact of the matter is that the global economy is nuts and regardless of what Yellen and the US Fed Reserve contemplate – there is no substitute for the USD.

Expect continued debasement by China of their currency – with each and every rise – or as what has happened now – a fall in the USD.

Only now ‘The Economist’ has woken up from their slumber with an article ‘Rate cut shows that even China’s government doesn’t believe its own data’.

Quite frankly who would?

Had anyone done the math – the provincial figures were far short of the PBoC data – and when one looks at these figures they are in line with 2009 GDP.

In reality China ‘guilding the lily’ – then again what choice do they have – they are trying to maintain this position of internal strength – to offset the complete ‘fukups’ by other Central Bankers.

Their currency still far too strong in the international markets – yes no one wins currency wars.

Investors seem to think that China will save the world again – that my dear friends is impossible.

Expect more reactions on the Shanghai Index – this against the PBoC comments that the markets are stable.



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