Submitted by John Rubino via DollarCollapse.com,
As China’s leaders figure out that pegging the yuan to the dollar while quintupling their debt in five years was a colossal mistake, they are, apparently, concluding that the only way out is a sudden, sharp currency devaluation. As Reuters reports...
On Thursday, as the world was focusing on the collapsing Chinese exchange rate, we noted that in a more troubling development, in December Chinese FX reserves declined by a record $108 billion, bringing the total drop for 2015 to over half a trillion, and the cumulative decline since Chinese reserves starting dropping in mid-2014 to just shy of $1 trillion.
Excerpted from Doug Noland's Credit Bubble Bulletin,
There was a palpable sense of disappointment among US traders who woke up this morning, expecting China to have announced another major stimulus - whether an RRR or full-blown interest rate cut - following Saturday's announcement that after 46 consecutive months of wholesale deflation, not to mention a historic market rout, China had not engaged in another round of monetary, or at least fiscal, and very much self-defeating stimulus.
"Growth" meet "mal-investment boom-bust" In a perfect example of the smoke-and-mirror-ness of China's credit-fueled expansion, a 27-storey high-rise building which was completed on November 15th 2015 was just demolished, "having been left unused for too long."
As China People's Daily reports,
Directional blasting demolition of a high-rise building was completed successfully at 7 a.m. on November 15, 2015 in Xi'an, in northwestern China's Shaanxi province.