Apart from some more of the usual nonsense in this discussion about ‘certainty’, the historical context on Japan (who was the last, late, great export leader of the 1980’s consumption boom, similar to what China was in the most recent cycle), is relevant. Only this time, far more than in any other cycle, global monetary policy tanks have already been emptied trying to pause the necessary asset deflation that began in the 2008 contraction. That pause now ended, deflation is back with a vengeance…The “free lunch” of incessant interference to goose capital markets, is over and the bill now due is bigger than ever.
Peter Fisher, BlackRock Investment Institute, weighs in on China’s currency devaluation, and the Fed’s interest rate policy. Here is a direct video link.