Posted by: michaeldavidpower | August 21, 2009

Where in this World are we going?

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  1. HI Micheal – sounds like fun – more digging on stock pile levels in China willbe useful – also the long term consequences of the Chinese having such a low cost of capital – how long is this sustainable for – I presume ntil they run (if ever) a current account deficit.

    bon voyage

  2. Will do. Is it rebuilding run down inventories, creating a strategic stockpile or storing FX reserves in something other than the US Dollar? Or a bit of everything? Note China was the world’s largest exporter in H1 09 – overtaking Germany as I predicted. QED Little chance of a current account deficit for the foreseeable future… Their low cost of capital is a function of their being able to regulate their own “atmosphere for capital” via fixed RMB rate to the $ and capital controls..

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