As we all know QE2 is in it's final act and when the show is finished the lights go on. The show was so good we'd wished it never ended but reality says all good things must come to an end as the theater empties.
The silence is eerie.
China has a new economy !!!
yes its called 'bubbles'. They've got an 'inflationary bubble' a 'property bubble' an 'asset bubble' a 'money supply bubble' a 'municipal debt bubble'.
In fact everything in their economy is inflating dangerously close to near catastrophic proportions.
Everything about China is big. So are their bubbles.
But the government is going on the defensive and looks to be confronting most of these bubbles head on through monetary manipulations.
The new wave of interest rate squeezes and liquidity tightening are about to released.
Europe.
Naturally the Greek 'will we stay/will we go' rumble will continue but elsewhere on the continent governments are continuing to increase interest rates and tighten the screws on austerity programs.
Italy suffered a recent credit downgrade; social unrest seems to be everywhere.
So
All in all the financial and economic news coming seemingly all in one patch can only disturb commodity and share markets. Those markets are in for a rough patch over the coming weeks.
