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China Policy workshop

 So the Chinese had another one of their policy meeting.  Bottom line nothing changes.  Part of the problem is that the objective continues to be the expansion of foreign markets and not consumption at home.   There is talk of "weak currency" but since the Chinese yuan is not a tradable currency it really doesn't matter very much.

Fundamentally China is stuck in a corner and it has no idea how to get out.  The problem is that the political leader is perfectly happy with how things are right now.  Xi Jinping is in charge and there is no one to challenge his leadership.   

For a long time GDP growth targets were nationally important, a bit like a "dick measuring contest".  For a very long time now China has been playing the game alone, but it made the central government and its leadership happy.  Economic growth is entirely driven by the desire to create jobs so that the population does not interfere with the political process.  

The meeting for the past few days was just a reiteration of the government's policy of 2013...not kidding.  Everything is fine.   The BS with the small local banks is a perfect example, they can keep shovelling forward for a few years, maybe even a decade.  

Yes there are consequences to their actions, but that's for another time. 

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