🇨🇳OK so I've received some requests for comment on the exit of #Hu, thoughts on #Xi, etc. So here goes. You're going to disagree. That's okay. 🧵
I haven't believed Xi has been the center of power since ~2015/2016. I was working at the NDRC then & had a unique view as a foreigner. This is not a clueless think tank point of view, but many will say this is disqualifying. I don't care. Won't give more details on this.
Xi's recent moves are very Mao late 60s or Mao early/mid 70s (aside from the brief period where the Suzhou rail issues, etc were solved).
Remember, Xi was sent to the countryside to live in a cave during the cultural revolution. Mao stressed politics over economics from ~1956 until he died.
Xi's handlers are following in those footsteps
In the end, the bureaucracy will win. They always do in China. They're too smart. People who have known Xi for decades have repeatedly told me that Xi is not bright.
It'll take years, tho, for the bureaucracy to win
He's in a more dangerous place than most Westerners understand
Thank you for attending my talk. 🙏
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I'll be going on @ChannelNewsAsia "Asia First" in a few hours. Here are some of my talking points:
Turkish Lira volatility
•Turkey’s president Erdogan vowed to reduce interest rates
•Central bank reduced rates from 15% to 14% last week
•Turkey’s inflation is 21%, expected to approach 30% in 2022
•TRY fell 10% this morning (to 18.4/USD) – down 40% over the past 5 weeks
•President Erdogan announced that the government would ensure that those holding Lira would not lose more than the current interest rate
•TRY regained 10.8% and closed at 13.4/USD
The administration's release of 50m barrels from the SPR is about 2 1/2 days of oil consumption in the US. Although the amount is legally questionable (the law limits the release to 30m barrels), markets had already priced in a larger release.
While this technically is a globally coordinated release - with the UK, India and elsewhere also releasing reserves - the levels outside of the US are token amounts of "comply" with the Biden administration's release, but not offend their OPEC+ partners.