Red Ponzi Alert: Tip Of The Global Bubble Plunges Into Lockdown

My Bubble thesis views China as the marginal source of both global Credit and demand for commodities (and much else). Any development posing risk to China’s vulnerable Bubble rather quickly becomes a pressing global issue. It’s worth noting the Bloomberg Commodities Index dropped 3.1% this week. WTI crude sank 7.4%, while Copper was hit for 5.7%. Nickel fell 6.9%, Tin 5.4% and Zinc 3.6%. China’s renminbi declined 1.2% versus the dollar. In spite of notable investor optimism and attendant financial flows, EM currencies reversed lower this week.