Thursday, July 5, 2012
There was an interesting piece on zerohedge or maybe somewhere else (oops~ ) that the Chinese officials are systematically looting prior to jumping ship to Canada, and that the main mechanism is negative interest rates for the general population, while allowing direct subsidy to the borrowing state owned businesses. Negative returns on savings with negative borrowing costs would seem the fleecing mechanism of choice. So that is the state of China and also our very own state apparatchik interatun von controller seems to have pumped some more cash into to keep those pesky prices on their eternal upward march. China also seems partial to just dropping the reserve requirements because hey, you always get the money back on a negative interest rate right !