f we survey the whole developed world, plus China and Russia, we see a picture of states using currency tactics effectively to steal growth from each other. If you add to that the recent collapse of oil prices, it adds to powerful deflationary forces that pessimists always feared would emerge in the world economy as the stimulus after the 2008 crisis either runs out or is unwound.
Basically, if – like me – you fear de-globalisation as a result of the failure to tackle the strategic problems that lay behind the 2008 crisis, this is just China sticking to the script.
But the wildcard, as always, is the Chinese people. The communist government sits – Canute like – ordering the stock market to rise because it knows the young Chinese populace is so well connected, informed and educated now that only a combination of repressive action (for example last month’s round up of human rights lawyers) and perpetual stock-market boom will stave off political discontent.