China may be once again beating us at our own game. But instead of ripping off American goods and producing them at a fraction of the cost, this time they’ve copied our monetary policy. And like everything the Chinese do, they are doing it big.
The Chinese government has been pumping the economy with liquidity by printing money at an alarming rate. Much of that money has ended up in the hands of wasteful state-owned enterprises, or SOEs lent to them by a banking cabal.
According the Motley Foo
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There’s always a bright side to things, just ask the markets.
All three headline composites of the latest Case Shiller home price index were lower for the first quarter 2012. In fact, home prices in many cities are at the lowest levels since the housing crisis began.
This “good news” combined with the other “good news,” Greece being such a gigantic financial disaster that it’s getting kicked out of the Euro, propelled the market higher.
If we are going to follow the stock investor’s lead, and
