{"id":7627,"date":"2015-04-27T06:00:43","date_gmt":"2015-04-27T11:00:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7627"},"modified":"2015-04-27T06:00:43","modified_gmt":"2015-04-27T11:00:43","slug":"china-considers-launching-qe-shanghai-stocks-soar","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7627","title":{"rendered":"China Considers Launching QE; Shanghai Stocks Soar"},"content":{"rendered":"

China Considers Launching QE; Shanghai Stocks Soar<\/a><\/h3>\n

Nearly two months ago we explained “How Beijing Is Responding To A Soaring Dollar, And Why QE In China Is Now Inevitable<\/a>” in which we cited Cornerstone who reminded us “that from 2007 to late 2008, U.S. fed funds dropped 500 bp, and then the Fed still needed to do QE? The backdrop for China looks a bit similar. We had a credit bubble, they have a credit bubble. We had a housing bubble, they have a housing\/investment bubble. Will China eventually have to go down the same path as the U.S., and the Eurozone? … The PBoC will first cut rates to 0%, before contemplating QE.”<\/p>\n

To this we added that “once China, that final quasi-Western nation, proceeds to engage in outright monetization of its debt, then and only then will the terminal phase of the global currency wars start: a phase which will, because global economic growth and that all important lifeblood of a globalized economy – trade – at that point will be zero if not negatve,\u00a0will see an unprecedented crescendo of money printing by absolutely everyone, before coordinated devaluations mutate into uncoordinated, and when central bank actions morph from “all for one” to “each man for himself.<\/strong>”<\/p>\n

We may not have long to wait because just hours ago, MarketNews first among the wire services hinted at what we suggested was the endgame.<\/p>\n