This story got plenty of ink on Wednesday but Ambrose gives us his unique perspective on China’s jitters over quantitative ease.
I don’t feel a lot of sympathy for China on this issue because as Paul Volcker recently observed “No one forced China to buy all those dollars.” China, of course, buys dollars to keep the CNY artificially weak to support exports.
For what it is worth, the US held a very successful 10-year note auction today despite China’s jawboning.
