Saturday, June 18, 2011

The Die is cast

Expect more currency intervention in China as civil order is breaking down. Exports cannot be allowed to fall. This is precisely why the Euro and Yen have remained strong IMNSHO.

Residents look on Monday as riot police patrol the southern Chinese
city of Zengcheng, where violent protests had erupted over the rough
treatment of a migrant street vendor.

BEIJING—A wave of violent unrest in urban areas of China over the past
three weeks is testing the Communist Party's efforts to maintain
control over an increasingly complex and fractious society, forcing it
to repeatedly deploy its massive security forces to contain public
anger over economic and political grievances.

The simultaneous challenge to social order in several cities from the
industrial north to the export-oriented south represents a new threat
for China's leaders in the politically sensitive run-up to a
once-a-decade leadership change next year, even though for now the
violence doesn't appear to be coordinated.

No comments: