Today is the first day of the Chinese New Year of the OX. And it happens with a partial lunar eclipse visible over most part of Asia. It is a bad omen for the Chinese.
The gruesome decapitating of a Chinese student in Virginia Polytechnic University US, and a van reversing on its own and run over a few Chinese kids in NY Chinatown are all happenings revolving around the Chinese.
China bashing is going to escalate with Geithner comments on Obama susepcts China of manipulating currencies. Trade wars are just about to erupt.
Governments in trouble are withdrawing their deposit with the US treasuries to bring home and save their economy. Hence a top in US Treasuries has come. With the selling of US Treasuries, we would see a sharp drop in demand of USD.
The selling of Treasuries may lead to diversification into Equities and Commodities.
A plunge of sort has come, this time in terms of USD. Most unexpectedly, US Equities may rally for no reason at all, bços of this reverse capital flows.
how would China fare ? With its 400 Billion USD stimulus plan ? Would China market/HK market fare better than US ?
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