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China parts ways with US, Japan easy money
So much for the “PBOC put” that was supposed to lead China to Japan-like ruin. In recent years, punters expressed fears the People’s Bank of China would go the way of the Bank of Japan and US Federal Reserve. Both the BOJ and Fed have spent the last 20-plus years bailing out markets with liquidity jolts in times of trouble. That’s been the strategy for the BOJ’s Haruhiko Kuroda in Tokyo now to BOJ teams dating back to the 1990s. The same with Fed leaders – from today’s Jerome Powell on back to the Alan Greenspan era two decades ago. A central bankers’ job, it’s often said, is to yank away punchbowls ... (full story)