Furious China Moves To Counter “Turmoil In Financial Markets” Caused By “Massive” Biden Stimulus

• Furious China Moves To Counter “Turmoil In Financial Markets” Caused By “Massive” Biden Stimulus
  by Tyler Durden, https://www.zerohedge.com/
  For all of the past decade, it was the US that was fiscally constrained and China had to serve as the world’s debt-fueled growth dynamo (it’s also why we said that China’s credit impulse had a far greater impact on the global economy and assets prices than even the Fed’s QE whose size and scope is tiny in comparison to the trillions in new loans created by China every year). Well, welcome to upside down 2021 when the script has been flipped, and with China jawboning its desire to slowdown its massive credit injection machine (and even, gasp, deleverage from its nosebleed debt levels, a consequence of its post-Covid response) it is now the US – and Biden’s gargantuan fiscal stimulus – that Beijing is freaking out about (as we noted recently in “Up Until Now It’s Been All China: Now It’s Going To Be All The US“)
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  The moves by the People’s Bank of China come amid a growing divergence in the recent economic policy responses by the United States and China, with Washington boosting stimulus significantly while Beijing starts to taper off its economic-support policies enacted last year in response to the coronavirus pandemic. As the reports goes on to note, “Beijing officials and policy advisers have been highly critical of US President Joe Biden’s newly signed US$1.9 trillion American Rescue Plan, warning that it could cause massive capital flows and imported inflation that could exacerbate domestic financial risks from already high debt levels.“
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