We have seen this pattern before, and it did not end well. While the most mainstream indications of China's "stability" are droned on about as indicating some level of control (i.e. Yuan volatility suppression), the fact is that no matter how hard China tries to centrally plan the entire world, segments of the credit market are screaming "uncontained."
First, China was forced to inject the most liquidity in three years... and it's still not helping support risk...
The last time China supressed FX volatility, in the desperate hopes of holding the balloon underwater long enough for everything to be fine, China's sovereign CDS market was screaming that devaluation was coming... and it did - and large. Now, we see the same pressures building...
And finally, despite record amounts of liquidity being spewed into China's financial markets, China's largest bank - ICBC - is seeing its credit risk explode...
Do these pictures look like China is "contained" as Bernanke and Dalio believe?