主题：【原创】通往2012的船票 -- 万里风中虎

in the end, financial asset bubbles (stock and real estate) keep on popping up while the ever-increasing lending rates chokes off productive production investment.

This will result in further reduction in effective supply and further inflation--> further pressure to increase lending rates to constrain money multiplication.

This is an evil spiral.

That's why I think cut on the capital inflow is a better way. China needs to use the depreciating USD reserves to buy up more physical stuff to cure the domestic inflation--inflation can be depressed with more physical resources, not monetary resources.

美国人在这个问题上步步紧逼--just a deja vu of 1970s. It did the same thing against Germany in exactly the same pattern. Chinese elites should know that LONG time ago.