Friday, July 17, 2009

Failed bond auctions - China

China has been failing bond auctions all week - now we have a third separate incident. China stimulus has been causing resources to soar, but they have to stop the stimulus, or do one of two things - print faster or sell US Treasuries. It's a very complex web, but suffice it to say, this places upward pressure on interest, which in turn rips down unsuccessful and fraudulent businesses.

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