China money market lock up
Shanghai 7 day interbank rate goes ballistic- from 2.5 to over 7 in a few days.
Now it could be just an example of problems of running a mixed (quasicapitalist) economy and Hu needs to get home and tell the boys to print some yuan. Trying to understand their markets is very challenging.
On the other hand it may be that they really are between a rock and a hard place- that attempts to tap on the brakes, even lightly, are causing the money markets to freeze up.
In which case I'm thinking it could be the beginning of the end but also might only be the end of the beginning- if they decide that kicking the can down the road a bit further they may light off a final fierce round of global commodity inflation.
Your guess is as good as mine.
Re: China money market lock up
Nox the pupet masters are really getting tangled in the strings! If they start printing money to keep this thing under control the US house wife may be the first to feel the heat!