Upon stating to a student audience at Peking University that "Chinese financial assets are very safe", laughter broke out. His next joke was, "in the United States, we are putting in place the foundations for restoring fiscal sustainability."
China may become the new bond vigilante who is not drinking the Kool-aid. Now what is really funny is that everyone knows that the principal value of China's foreign reserves are at risk but there is nothing they can do about it. This is the real gallows humor.
Unfortunately, the market took the jokes more seriously as bonds continue their decline.
China may become the new bond vigilante who is not drinking the Kool-aid. Now what is really funny is that everyone knows that the principal value of China's foreign reserves are at risk but there is nothing they can do about it. This is the real gallows humor.
Unfortunately, the market took the jokes more seriously as bonds continue their decline.
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