The China Bubble Syndrome

All that money Uncle Ben is printing has to go somewhere, and last month oodles of it went to China:

China’s central bank signaled on Wednesday it was prepared to change its monetary strategy to fend off inflows of speculative capital, as Beijing struggles to control a tide of cash washing in from overseas markets.

The move came as April exports blew past expectations, which appeared on the surface to indicate that both China’s economy and global demand were on the mend. But economists were quick to suspect the figures were artificially inflated by investors who were disguising speculative bets on the yuan currency as trade payments.

Little is what it seems in China, until it turns out to be exactly what you suspected.