Gavin Davies notes that the US FED has overturned decades of hard yakka and has now committed itself to making inflation rise. He concludes "...it is not difficult to see why the dollar has been falling, and gold rising".
But Chris Whalen goes bananas on declining profitability in the US banking system and declares ahead lies "...the worst economic contraction since WWI". Perhaps that's why Larry Summers is abandoning ship.
Gregor Macdonald on China's crazy coal use.
Martin Wolf does Michael Pettis does China's fixed investment dependency. And for those who can remember, John Garnaut made the same argument six months ago.
And, courtesy of Michael Pettis, the following links on a trade war between China and...well, everyone else:
- U.S. may trigger trade war with China on currency issue: Experts
- EU should think twice before taking trade defense measures against China
- China still a renegade nation
- China's yuan on long gaining streak
Of course, according to Jim O'Neill and his breathless reporter Michael Stutchury, it's all good in China. Oh yeh! Stutch is making a habit of loving in with Goldman luminaries.
Even as iron ore prices trace out what looks suspiciously like a head-and-shoulders top on withering demand and world steel capacity utilisation fell again in August.
The counter argument being that the US dollar shows the same pattern, only clearer still.