Replies to post #70560 on China Growth Stocks

[KOkre]

The commotion over QE2 seemed like little more than the media just hyping things up to get attention. The way they talked about it would make people thing our economy was going to come to a standstill lol.

[Andrew26]

Of course QE2 works. Perfectly. Ben is a genius, he managed to redirect the attention while the main goal of monetary easing nr2 is completely somewhere else... that guy is good, dirty good. Chinese politicians dont understand they are way new on this playground and gotta learn a lot. The longer they are stubborn with peg the worse the inflation will get (and that inflation is absolutely already behind manageable line is clear).

Remember US asking China to unpeg yuan? They didnt listen. QE2 is teaching them in a hard way. Having pegged currency in these times is... well at least playing with fire. Chinese overall output gap is very likely gone and hence it all goes to inflation now. Golden days are over for several years. Monetary tightening? Too late and whats the most important - as long as they keep yuan underpriced, they dont tighten Chinese economy only, they need to tighten Bens printing machines.

Good luck with that, China.