China easing rates triggers economic divergence, and highlight potential distortion risks

Blain’s Morning Porridge/Bill Blain/1-20-2022

“As the West reopens, China’s lockdowns remain draconian. It has eased rates on the back of growth concerns. The result is growing monetary divergence, and China looks set to go down the same monetary experimentation route the West is now trying to reverse. The World and Monetary Policy has split.”

USAGOLD note:  Blain explores what might become an increasingly important change of direction in Chinese monetary policy. China stimulates while the West clamps down. Some have interpreted China’s divergence as one of the keys to the surge in commodity prices over the past several trading sessions, including gold and silver.