Tuesday, December 20, 2016

Chinese Capital Outflows
Mish Shedlock*: "As the once beloved Yuan sinks deeper and deeper into the sunset, Chinese Rush to Open Foreign Currency Accounts .. U.S. dollar strength is highly likely to reverse soon, if indeed it has not already peaked. That does not necessarily translate into better fortunes for the Yuan. Much depends on U.S. interest rates, strength of the US economy, European instability, and global equity prices. Things are so screwed up, especially in Europe, that it’s possible for the dollar to strengthen even if the Fed does not hike as expected. The words 'global mess' best describe the current state of affairs. Neither Trump, nor Merkel, nor anyone else can fix the structural problems. Economists and politicians generally do not even know what the problems are. Rather, both fight symptoms, and poorly at that."
LINK HERE to the commentary

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