When China's Bubbles Burst

Ah, now there's something to think about. China has more of them than Mr. Bubble himself. And they know nothing about managing them - else they wouldn't be having them to begin with. Watch how the people panic when a dictatorship mentality stomps in to restore order. Watch how counterparties the world over invoke collateral claims -- or attempt to. Watch how assets get dumped.

How many ships will be scuttled in their wake? And exactly which "central bank" will step in as lender of last resort? Why, all of them, of course, flying the flag of the IMF. If a mere bank in New York can be dubbed "too big to fail," how much more so an entire nation, and one that owns everyone's debt (and makes everyone's junk), at that.

We remind you of previous posts about a supranational currency, and a de facto global citizenship.

We can always pray it doesn't happen.