Tag Archives | the Fed

What Yuan Depreciation Means

By John Richardson

THE truth is that nobody has ever entirely understood the nature of China’s chemicals and polymers demand.

During the good times, at the height of China’s credit Ponzi scheme, if you were a sales manager, why ask …

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Central Banks Chase The Inflation Illusion

By John Richardson

IT was Milton Friedman who famously said “inflation is always and everywhere a monetary problem”.

This widely accepted economic wisdom is based on the following premise: Excessive expansion of the money supply is inherently inflationary.

And so …

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China: Do The Maths On 2014 GDP Growth

By John Richardson

DO the maths and you should be able to assess what could happen to China’s GDP growth in 2014:…

The Chinese Academy of Social Sciences wrote last week in the China Daily: If the PBOC loosens monetary

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The US Patient Needs An Operation

By John Richardson

THE Fed’s quantitative easing (QE) programme hasn’t worked because, to use an analogy, it has been equivalent to pumping drugs into a patient that needs major surgery in order to fully recover.

A steady flow of drugs …

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China And The Fed: Still Back To Front

By John Richardson

THEY are still getting it the wrong way round.  Both the Financial Times and The Economist, have said over the last few days that weaker prospects for emerging markets are mainly the result of Fed tapering.

We …

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Global Equities, China, The Fed And Some Perspective

By John Richardson

AS USUAL, everyone will take what they want and need to take, in order to protect their own interests, out of Monday – the worst day for the Dow Jones Industrial Average in seven months. This was …

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China’s About Turn: The Seven Global Implications

By John Richardson

HISTORIANS will end up concluding that falling emerging market currencies and stock markets – the prelude to what could be a full-blown crisis –  is really about China and not about the US Federal Reserve. The Fed …

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China “Base Case” Indicates Another Good Year

By John Richardson

LAST year was a tremendous year for polyethylene (PE) exporters to China, according to data provided by US-based International Trader Publications, the US-based trade data and analytics service.

They conclude that China’s imports of high-density polyethylene (HPDE) …

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Getting China And The Fed The Wrong Way Round

By John Richardson

MOST newspapers and wire services still seem to have got it in the wrong way round. Last week, as Argentina’s Peso crisis began, they continued to identify Fed tapering as the number one threat to emerging markets …

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China Is “The Fragile One”

By John Richardson

THE “Fragile Five” might, as we discussed on Monday, have become “The Exposed Eight” developing countries threatened by a disorderly Fed tapering.

But what if, in all the focus on the Fed cutting back on quantitative easing, …

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