Chimerica's slippery slope to Stagflation - Andy Xie
Watch for more Fed quantitavie easing, slower growth and policy traps in coming quarters
The global economy is heading toward another double-dip scare, possibly in the third quarter, in what could be a repeat of summer 2010.
Financial markets may stumble in a few months, and that could prompt the U.S. Federal Reserve to introduce a third round of quantitative easing or an equivalent, which would be another step down the path toward stagflation. In this scenario, China’s current monetary tightening policy would be difficult to sustain.
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