According to Chinese financial authorities the panic in the short market is over. They claim the mighty PBOC has solved the problem. They're like everyone at FED, FOMC, staff, universities. None of them have the slightest clue about how capitalism and free markets work. They work this way.
The "problem" goes away for a while, maybe two weeks, only to return with increased strength. The increased strength comes from PBOC's attempt to contain the previous problem and from the intrinsic cause, strong nominal economy which is oil consuming inefficient. China is firing on all cylinders, blowing fire out of their exhaust pipe, and spinning their wheels to show their might.
Not surprisingly, they aren't the only economy that's oil consuming inefficient. Most are, except the US. Oh, don't get me wrong. Oil consuming inefficiency comes mostly from socialistic lunacy, but in the US, Kyng's attempt to impose enviro-fascism, has brought about a nominally weak economy. Oil consuming efficiency is unimportant there.
And, don't believe these HACKs who claim strong "strong GDP growth". They have themselves needing to believe lies to assuage their guilt for having ancestors who did a great disservice by bringing black people from the paradise that Africa has always been. A small storm could kick the slacks out of this tentative GDP.
So is the world developing an oil glut? Nope. OPEC stated the other day they didn't think they needed to curtail output.
Read: buy oils. |
