Patrick Chovanec submits:Senior officials of China’s central bank, the People’s Bank of China (PBOC), have left a trail of curious statements over the past month that appears to tell an interesting tale.
Let’s wind the clock back to 2008. The world was thought to be ending. Lehman went bust. Markets were plunging. Everyone was scared that growth was over. It was as though the global economy was grinding to a halt. But then China’s stock market bottomed. The Chinese Government announced a massive stimulus plan to turn its economy around. And sure enough the Chinese economy took off again.
Gary Dorsch (Global Money Trends) submits: Last year’s parabolic rallies in copper, gold, Brazilian and Russian stocks, and the Australian dollar, are running out of steam. Suddenly, there are eerie reminiscences of scarier days gone-by.
China's once-in-a-decade leadership change has put a new generation in the hot seat, led by Xi Jinping, the president-in-waiting. Last November's congress elevated Xi to secretary-general of the ruling party and head of a seven-man central committee. China's new cabinet will be confirmed next month when the national legislature meets in Beijing, with President Hu Jintao keeping a low profile as he prepares to hand over the baton to his successor. But not everyone is going quietly into the night.