UPDATED: We All Are Backed By Easy Chinese Politburo

UPDATE: China PMI key messages by BNP Paribas today:

New orders slipped to 0.1% to 58.4% as export order declined 0.9% to 53.6%.
Output flat, with falling new orders; inventory index is decelerating.
Input prices surged 6.5% to 63.4, implying inflation pressure.
PMI growth is peaking – export growth is muted and commodity prices are rising.

Click on chart to enlarge, courtesy of BNP Paribas.
If BNP Paribas is indeed correct, then floods of "easy life" cannot stop this millenium ...

>>>>>>>>>>>>>>>>>>>>>> ORIGINAL POST FOLLOWS:

Endless liquidity will continue for the next year at least, as the economists at Societe Generale wrote yesterday:

The all-powerful Politburo of China's Communist Party met last Friday in advance of the Central Economic Work Meeting, to be held in December that will map out Beijing’s official economic policies for 2010.

The politburo decided it would "maintain the continuity and stability of economic policies, and continue to implement the proactive fiscal policy and loose monetary policy."

That is exactly the same language Beijing used to describe its dramatic stimulus efforts this year, which have resulted in bank lending and capital expenditure growing by more than 30%.

Click on chart to enlarge, courtesy of Societe Generale.


The banking houses of Nomura and BNP Paribas delivered a kind of similar messages ...

Bad for those who cannot swim in the liquidity flood!