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The China Syndrome – In Reverse

The start of a meltdown that might gut the world?
Monday, July 27, 2015, 9:52 PM
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The China Syndrome is alive and well. In todays' world, it just has more to do with nuclear levels of margin debt, not runaway radioactive decay.

If China really gets into worse shape, we’ll see them panic and do everything from weakening their currency to support trade (which will export deflation via prices of manufactured goods), to imposing capital controls, to selling US Treasury bonds to pay for the rescue efforts.

 

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