China talks the talk after the rate raise…
“We have raised reserve requirement ratio for six consecutive times and increased interest rates twice to absorb excess liquidity in the market to keep it at a reasonable level to support economic development,” Wen said in a state radio broadcast a day after the rate rise.
The fact that the top levels of the government are making press comments, in a historical quiet period, makes me start to think that China is a lot more focused on this topic than I was first giving it.
“I believe we can keep prices at a reasonable level through our efforts. As a major leader of the government, I have the responsibility and I have the confidence, too,” he said in remarks published on http://www.cnr.cn.
This last part, makes me start to wonder if China is loosing it internally. The reality is that overdeveloped economies, once they are finished with growing exponentially, can take a while before they are productive again in over all growth terms. Just look at Japan since their peak. The second largest economy has been anything but a leader in econonic growth since their peak.
I always start to blink and look around, when others inform me that I don’t need too.
This feels like one of those moments…
Ponder China shorts… REAL ONE’s.