Its all well and good to exactly identify the motivations for name calling between geopolitical players, the reality is they will always do it and it cant be made obsolete by talking about it.
The Chinese economy grew credit based money by 35% of their GDP last year. You similarly the me in that you research things well, when before in history has a nation as large as China grown money supply in 2 years by nearly 60%? Its certainly not Russia 1921 or Wiemar , now we have suggestions that austerity in Europe alone will cut them back to 4%, this translates to needing to boost credit by 40% next year. If they do that then +40% of their GDP will be new borrowings.
Those kind of numbers would see China explode in the next 12 months, its a very serious situation, if the rest of the world wont grow and China is willing to keep expanding credit, the Communists (or whatever you choose to call them) are over.
You've got bulls square dancing in the China shop and someone eventually turn the lights off.
Remember China is the most unstable major power of the last 200 years (maybe 400), it had hyperinflation last 1947-49, they cycle through a 50-70 Kondratiev revolutionary cycle. It was a country naive enough to embrace Mao , leopards dont change their spots.
Marx would take the current regime and Chinese central bank to the woodshed if he were alive today.
Bernanke inspired central consumption planning does not work, nor does Hu central production planning........ central planning never works , especially at this scale.
Chinese investor will be running for their lives if they keep printing, remember they sterilize the USD coming in, who wants RMB if they are expanding money supply at this rate?
