
China's Stock Market Isn't the Problem - Kinnard
http://qz.com/588704/chinas-stock-market-isnt-the-problem/
======
Kinnard
I'm surprised there's no mention of the impact of recently rising Federal
Reserve Rates[1] on the Chinese Currency or the fact that the Yen was recently
added the IMF's Special Drawing Rights currency[2].

Since China's moves in August I think its fair to characterize this as a
currency war. And it's Dollar Hegemony that's hanging in the balance[3]. Many
have characterized it as a war for much longer. What's different now? The
proxy wars between the United States and Russia are heating up and tensions
between China and the rest of East Asia are heating up. Western sanctions on
Russia for Ukraine pushed it toward China and that may just have been the
tipping point[4].

I find it remarkable how able the performances of equity markets are to
obfuscate the currency and bond markets that are driving them[5]. When
equities move fortunes change, when currencies move, the balance of power on
the planet changes.

[1] [http://qz.com/588049/what-the-fed-was-thinking-when-it-
final...](http://qz.com/588049/what-the-fed-was-thinking-when-it-finally-
raised-interest-rates-last-month/)

[2] [http://www.globalresearch.ca/chinese-yuan-incorporated-
into-...](http://www.globalresearch.ca/chinese-yuan-incorporated-into-imf-
special-drawing-rights-sdr-us-congress-gives-in-and-endorses-the-imf-quotas-
reform/5499619)

[3] [http://www.brookings.edu/blogs/ben-
bernanke/posts/2016/01/07...](http://www.brookings.edu/blogs/ben-
bernanke/posts/2016/01/07-dollar-international-role)

[4] [http://www.economist.com/news/china/21650566-crisis-
ukraine-...](http://www.economist.com/news/china/21650566-crisis-ukraine-
drawing-russia-closer-china-relationship-far-equal)

[5] [http://qz.com/588704/chinas-stock-market-isnt-the-
problem/](http://qz.com/588704/chinas-stock-market-isnt-the-problem/)

~~~
Kinnard
O, I forgot about #Bitcoin

