Last year was the Year of the Rabbit for the Chinese – promising among other things good luck! However, China which came out of the global financial crisis almost unscathed (or at least better off than most major world economies) hit one too many ‘speed-bumps’ in 2011. Last year’s inflation is threatening a significant slow-down […]
A lot has been said by the major Western news sources (WSJ, Bloomberg, FT, NY Times) about China’s reaction to the downgrade of the U.S. creditworthiness. Although there has been no official comment from Beijing since the downgrade, the Xinhua news agency (the official mouth-piece and the usual government ‘attack dog’ for criticizing the U.S.) […]
According to a recent article by Charles Wallace, posted on the Daily Finance (Currency Wars: How Ben Bernanke Outsmarted China), the U.S. has already taken the first ‘shot’ of the U.S.-China – often proclaimed, never materializing – trade war. Mr. Wallace reported that Fed Chairman Ben Bernanke’s program of quantitative easing is targeting the Chinese […]
It is NOT surprising at all, that Chinese authorities raised interest rates over the weekend of December 25/26 (the second such raise in 10 weeks) amid inflationary concerns. Analysts and experts, both domestic and foreign, have been predicting such a development due to the high levels of growth during the last three years (9.1% GDP […]