The internet rumour mill is hyped tonight. Talk of China injecting 142 billion USD worth into their banking system.
I had been watching China's deflationary industrial production data, and have been talking about how China retail had been wiped out of wealth via the property market implosion. This deleveraging has been playing out in weaker crude prices, lacklustre performance of other commodities (except silver and gold) and overall concerns ofa global slowdown.
If does this operation, likely by printing Renimbi and buying property market assets off banks at highly inflated prices, then the game is going to change big time.
The carry trade unwind is not so certain a thing, as the yen will weaken in sympathy with Renimbi, it has to, they are playing the same game. China is in effect Trumping Japan's QE support of its near financials and the Nikkei.
What this does for US stocks like Nvidia? No carry trade unwind, the ponzi can continue.
China exporting inflation, and not deflation, means the scope of the Fed's rate cut cycle is maybe in question.
It also means I still like Gold and Silver a lot.
Goldbug weirdo (TM) signing off.