China Bulls Take Note

Amid all the clatter about China as the new economic engine of the world, SocGen crafts strategy for China hard-landing

The French bank has told clients to hedge against the danger of a blow-off spike in Chinese growth over coming months that will push commodity prices much higher, followed by a sudden reversal as China slams on the brakes.

I must admit the Shanghai index looks like it could still have another leg higher.

And should one occur, it won't be time to jump in. It would be time to batten down the hatches.

Here's another news story about it:

China, the dragon that played with fire

There may be grave consequences for economies throughout the world if the Chinese dragon runs out of puff.

What if the entire China myth is a grand nursery tale for grownups?

My take is that the near universal perception of coming inflation makes it possible for the opposite to take place: deflation.

The world is saturated in credit and debt that must first be purged from the system in order for the printing presses to take effect.

That means years from now.

If you want to dig further, this is probably the most descriptive China story of all, because it's a first-hand, boots-on-the-ground email from someone actually living there.

Read it before the Dragon goes puff.