China is exporting deflation in a more profound way than I believe many economists and strategists appreciate. All else equal, the 15% depreciation in the yuan relative to the dollar in the last year should have increased its PPI inflation rate by 15%. Instead it has dropped 4%.
This is the chart that has launched a thousand takes.
The conclusion seems obvious: Everything the govt touches goes to infinity in price. Everything pure capitalism touches goes to zero.
But there's another way of looking at this graph that dramatically changes the story.
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I'll be pinning this detailed timeline, as my final piece covering this topic, as now the case is closed in my mind.
This was a crime plain and simple and I'll put no more wind in this criminals sails:
FTX: Meltdown.
The definitive and chronological thread.
We're likely going to range some coming 4-6 weeks. I'm pretty confident bottom is already in (80% chances) or very close to being in around ~13.5k (20% chances).
Apparently I'm basically the only one saying this rn. All the pll I know aiming for $12k or lower. Makes one think ๐ค