US Money Flows, Back Into China! Chinese Government officials, greatly embarassed by the recent street riots protesting their ludicrous 0 Covid stance are now reversing this misguided and ill conceived public policy.
Admitting that the Omicron Covid variants are now less lethal, they are relaxing restrictions on their unnecessary constant Covid testing and lockdowns that the Chinese people have been forced to endure.
They have failed to properly vaccinate their population. The people know that their 'home made' variety, Sinovax is very poor. The government was unwilling to import or locally licence Western vaccines which were obviously, so much more effective!
The Chinese people may live under duress. But they aren't stupid!
Even in China, what the people believe about their inept government also matters to their maniacal governing puppet masters. These autocrats desperately want to keep their base of power.
Their system of government must be seen to work! What if the people were to look to Taiwan as their model of an ideal government?
When the puppets turn on their masters, then these governors of play and work, had really, better listen!
This is something that even Mr. President Putin, another one of these overlording, 'grand schemers' might also choose to keep in mind.
The net effect of the opening up of the Chinese economy will be swifter US money flows into the Chinese market which has already begun in earnest!
US dollar outflows into the Chinese market means that the US dollar should continue to weaken substantially. All of the world's financiers and wealthy retail investors want to gain an early access, to re-position, prior to the more certain recovery, now going on, over there! To reposition, even in China, the US dollar is still the best respected, means of exchange!
Since an opening Chinese economy is now perceived, as very more certain, that market's bottom is already set in place!
That market is moving much higher. Everything there is now being bought!
The rebound in commodity prices should now become much more pronounced.
Commodity prices tend to run counter cyclical to the monetary value of the US dollar. They are denominated in US dollars. Demand is not the only driver of price.
If the trend remains our friend, as it is now (after many successive Chinese lockdown failures), precious metals should rise more sharply in the near term.
Chinese Premier Xi Jinping doesn't want to be embarrassed, once again. Now that everyone knows where his foolish his actions have led his country, will he continue to lead, if he doesn't appear to have any ability to learn?
Right now, he isn't perceived, as very smart!
Stocks follow a trend. Need I say, any more?
All the best, Java