It has been well commented on in the press that much of the Chinese stimulus and forced bank loans went into stock and commodity speculation as no better uses could be found for the money. It is easier to see that there than here for some reason. No doubt much hedge fund money from the West and from our quantitative easing made it to that party as well. Nearly doubling, one can see from the Monthly chart below, prices are at a level around 3500 of massive resistance, where a top can be expected. The inevitable crash will have a huge impact on the carry trade as well as the hope that China will lead us out of the recession that just ended.
It has been well commented on in the press that much of the Chinese stimulus and forced bank loans went into stock and commodity speculation as no better uses could be found for the money. It is easier to see that there than here for some reason. No doubt much hedge fund money from the West and from our quantitative easing made it to that party as well. Nearly doubling, one can see from the Monthly chart below, prices are at a level around 3500 of massive resistance, where a top can be expected. The inevitable crash will have a huge impact on the carry trade as well as the hope that China will lead us out of the recession that just ended.
