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Wednesday, 02/19/2014 11:48:56 AM

Wednesday, February 19, 2014 11:48:56 AM

Post# of 15
China has no choice...inflation must deflate bubble.

Two ways to reduce an asset bubble: 1) deflate the asset price...pop, falling to the price level or 2) inflate the price index...hiss, to support the asset price.

In China's case they need much higher price inflation to support the property bubble. China will allow there people to protect themselves by buying gold as the inflation increases.

http://www.bloomberg.com/news/2014-01-30/china-can-t-afford-to-let-its-housing-bubble-pop.html

...if they don't do this it's Tiananmen Square II.