While I agree with your thesis of how liquidity can be seen as lead/ ongoing indicator for global growth… the difference between, pumping of US dollars into the system is that they find their way to reach the corners of the world via several channels, and influx of other Currencies such as Yuan in this case would do a little cause because
1.) Consumption is the issue and that is not because of the lack of savings but rather due to lack of confidence in Chinese Economy
2.) Extra “Liquidity” would not proportionate effect on Global trade/ Exports as US & EU takes a tough stance against them
I was wondering if now is the time to buy more Mercedes stocks or to wait a few more months to see how the troubles of the German automakers will develop, but that is probably the sign I needed. The rich Chinese typically like to demonstrate Prestige driving Luxury German vehicles. Most of them might deside to order a new one now. Wouldn't that be the perfect representation of the "butterfly effect".
While I agree with your thesis of how liquidity can be seen as lead/ ongoing indicator for global growth… the difference between, pumping of US dollars into the system is that they find their way to reach the corners of the world via several channels, and influx of other Currencies such as Yuan in this case would do a little cause because
1.) Consumption is the issue and that is not because of the lack of savings but rather due to lack of confidence in Chinese Economy
2.) Extra “Liquidity” would not proportionate effect on Global trade/ Exports as US & EU takes a tough stance against them
I was wondering if now is the time to buy more Mercedes stocks or to wait a few more months to see how the troubles of the German automakers will develop, but that is probably the sign I needed. The rich Chinese typically like to demonstrate Prestige driving Luxury German vehicles. Most of them might deside to order a new one now. Wouldn't that be the perfect representation of the "butterfly effect".