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.
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..
By: michaeldavidpower on August 25, 2009 at 9:31 am