Dysfunction in China

In a quirky move, China today announced it would stop publishing youth unemployment rates. While the official rate is around 20%, many China watchers think it is closer to 50%.

Dysfunction in China, manifest through a lower currency, has historically been like a cool breeze, blowing deflation through the world. With many developed 10-year sovereign bond yields about to break out to new highs on the back of unacceptably high inflation, China’s dysfunction could be a welcome deflationary breeze across the overheated (ex-China) global economy.

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