Global View August 2015: CE1, CE2 and CE3? Will the PBOC Be Forced to Triple Its Balance Sheet?

by Michael J. Howell10. September 2015 18:14

This report argues that August 2015 is China’s Lehman moment. Extrapolating forward, expect a Chinese ‘QE’ solution – dubbed here CE – a further 5-10% weakening in the RMB this year; spreading Asian inflation and Western deflation, and wild swings in the US Treasury market. If the PBoC fails, global bonds will rally, but if it succeeds, bonds could sell-off, much as they did in America’s QE periods.


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