Sunday, January 1, 2017

China tightens controls on forex

Plugging leaks in their monopoly sandbox.

But flows will still happen, and bitcoin price will jump, again.

The Commie Bank makes  much of the flow an unpriceable risk, and that fouls their sand box.
Risk means more bit error accumulation to cover, hay makes SOE loans payments rise, they cannot cover and increase debt; spiral crash.

Already  their overnight rates are getting volatile, no one can price the hidden flows. I would not be surprised if a major break happened in yuan trading, or bitcoin trading sometime this week. The pressure to move digits is extreme.

1 comment:

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