China’s Role as Lender Alters Obama’s Visit - By HELENE COOPER, MICHAEL WINES and DAVID E. SANGER – When President Obama visits China for the first time on Sunday, he will, in many ways, be assuming the role of profligate spender coming to pay his respects to his banker.  That stark fact — China is the largest foreign lender to the United States — has changed the core of the relationship between the United States and the only country with a reasonable chance of challenging its status as the world’s sole superpower – thanks V –
NY Times
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ZIRP Challenged – China Banking Regulation Chief Says Fed Rates Fuel Speculation – … “The continuous depreciation in the dollar, and the U.S. government’s indication that, in order to resume growth and maintain public confidence, it basically won’t raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation,” Liu Mingkang, chairman of the China Banking Regulatory Commission, said in Beijing yesterday … – Bloomberg

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China slams U.S. for inflating global asset prices via carry trade – by Edward Harrison – … In my view, this is pure political posturing by the Chinese in order to defuse any U.S. criticisms of Beijing’s currency peg. Call it a pre-emptive strike. … – Credit Writedowns

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China has now become the biggest risk to the world economy – By Ambrose Evans-Pritchard – Far from taking over as the engine of growth from an exhausted West, China is making matters worse. Its “beggar-thy-neighbour” policies continue to play havoc with global trade and risk tipping the world into a second leg of the Great Recession. – Telegraph.co.uk

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Eclectica November Fund Commentary – Below is the November commentary from Eclectica fund manager Hugh Hendry. He challenges the current preoccupation with the falling dollar and China, and posits what would happen if that thinking is wrong? It offers some very thought-provoking ideas.  – John Mauldin’s Outside the Box E-Letter
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China, U.S. eye pact to help troubled banks: sources - By George Chen – … Chinese and U.S. regulators are negotiating a pact aimed at encouraging Chinese financial institutions to buy into small and medium-sized banks in the United States, bankers briefed on the plan said on Tuesday. … – Reuters