Quotable 
“I am not sure Chinese policymakers fully understand how vulnerable China is to trade war.  This is perhaps because the “success” of the stimulus package has convinced them that they are less vulnerable to external demand than they originally thought.  But this would be a serious misreading.  The stimulus package has postponed the effect of declining net foreign demand on Chinese unemployment, but has actually increased its vulnerability by increasing the future gap between what China produces and what it consumes.  China needs foreign demand to keep absorbing its excess capacity for several more years while it engineers the difficult transition to domestic consumption led growth, but I don’t see either China taking the necessary steps to force the transition or foreigners looking very eager to help China through the process.”  – Michael Pettis

FX Trading – Bernanke Setting a Bad Precedent?

How badly does Ben Bernanke want to keep his job?

Frankly, I’m surprised he’d even sign-up for all the responsibilities and criticisms that come with being Fed chairman; just seems like it’s not worth it.

But so it goes for so many politicians and power-mongers in the upper echelon of social influence. 

Former Fed Chairman Alan Greenspan – you might know him as The Maestro – obviously soaked up the fame and glory that came with his command over all things monetary. But since stepping down from his role as economic front-man for the “private” sector, Greenspan has been slammed for his role in creating and harboring asset bubbles.

……read more HERE.