By Daily Crux Editor Brian Hunt:
The big China news making its way around the world right now: Brilliant Asia analyst Andy Xie is calling the rise in Chinese real estate and stock a giant Ponzi scheme and a bubble that will end badly.
Xie points out that China is benefiting from a weak U.S. dollar. The dollar is down big time from its 2009 high, so money is flowing away from the dollar and into places like China. But if the Federal Reserve increases interest rates in response to higher inflation, it could support the dollar and pull the rug out from under this momentum trade. It's a huge story worth keeping an eye on.
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Read Andy Xie's report calling China "a giant Ponzi scheme"
here...
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