Most western media over the last week have been reporting that the Chinese authorities have been “tightening”. This simply isn’t true. The reality as I said in my NDTV interview last month (see below) is that they are still lending at an astounding level. Their current projections came out this morning. They want to lend about Rmb7,500bn in total new loans in 2010, a significant decrease from last year’s Rmb9,600bn, but almost double the Rmb4,000bn or so in new loans extended in 2008. To cover these new loans the Chinese banks have started to raise capital beginning with a $36 billion float by the Bank of China.

my predictions about the the fall of gold on December 3rd for MarketWatch www.marketwatch.com/story/gold-taps-more-records-nears-1225-2009-12-02 style="">  and the second for NDTV on January 13th www.ndtv.com/news/videos/video_player.php?id=1192519 is about Google in China and the coming correction in the US market.