the shibor-shakedown part ? currency sterilization Achilles heel

i suggest hopping in your time machine and re-examining 1997 thailand or 1989 japan. both sterilization schemes ultimately failed especially when their real-estate market buckled. in order to support the sterilization measures the chinese must borrow dollars in order to devalue their currency. there's a shortage of dollars meaning the likelihood of buckling is a realistic risk. when the chinese devalue they import inflation and export deflation. meaning this hong kong incident is a likely reaction to mainland china inflation (not showing in fudged numbers). with a global liquidity crisis ongoing. expect a "plaza accord" type meeting to reign in the dollar and give the US long term the upper hand.