The Bailing Wire And Bubble Gum Which Keeps The Red Ponzi Together---Capital Controls

   “The best way to bring Beijing to its knees is by running a tight monetary policy in the US,” continued the same investor. “China has the world’s most overleveraged, fragile financial system.” In 2008, China’s total debt-to-GDP was 140%. It is now roughly 300%, while GDP is slowing. “The economy is held together by capital controls. If those fail, the whole system fails.” The capital flight in 2015/16 cost the government $1trln in reserves, and that was with ultra-dove Yellen in charge. Imagine what would have happened with Volcker at the helm. “The Chinese are dying to get their money out.”

 

 

 

https://www.zerohedge.com/news/2018-07-29/hedge-fund-cio-it-makes-you-wonder-if-china-isnt-pushing-russian-narrative

 

 

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