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2012-07-13 — zerohedge.com
The last four months of increasing angst about the state of the ‘landing' have seen a dramatic reversal of these flows, to the point that the discrepancy in the books suggests that China may have lost no less than $128 billion -- a flight which exceeds that suffered during the worst of the Lehman crisis.
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Taken at face value, this implies further, self-reinforcing pressure for the renminbi to weaken, for the Dim Sum bond bubble to deflate, and for commodity loans to be unwound, either suddenly - by means of re?exporting some of the swelling inventories of copper, et al -- or gradually -- by cutting back on new imports until the excess has worn off and the bills settled.
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