Someone is optimistic about the commies

MarketWatch: Investors are worried that capital flight and China’s efforts to fend off speculators will drain reserves, possibly forcing the country to allow its currency to depreciate sharply. But a report published earlier this month by Gavekal Dragonomics argued that claims of capital flight from the Chinese economy have been overexaggerated.

The report, published earlier this month, showed that domestic renminbi deposits actually rose in 2015. Household deposits rose by 10% and corporate deposits rose by 14%.

“There are few signs that people are withdrawing renminbi and switching into dollars on a large scale,” said Chen Long, the China economist at Gavekal and the report’s author.

No evidence of capital flight? We just saw numbers that had foreign investment in the USA, double.  We have seen the balance sheet changes in all the Asian tigers, buying real estate in Australia, Canada and the USA.   Global trade has collapsed, the American consumer is gone.