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Is China to blame for the global bubbles because it didn't let its currency float freely? The argument goes that if the currency had appreciated with the growing exports, China wouldn't have had the possibility to invest its vast currency reserves, which grew due to the fixed exchange rate, overseas. This has lead to bubbles in different asset classes and to lowering yields in the pension markets. But, please read it yourselves. Alternatively, I can offer you the theory explaining the decline of the gold price. Well, central banks sold roughly 8 tons of gold lately. Ok, I agree, 8 tons is not worth mentioning. It's gold loans from central banks that move markets. I hope they kept some gold and didn't sell everything, because some regulator (perhaps they themselves) could forbid naked shorting of physical gold! Again, very devilish. Finally, I came across the new Bundesbank. Well, not exactly, but it is also a money printing machine and comes in a very fashionable Societas Europeae packaging. No clue? We are talking about Porsche SE's fruit machine, as an analyst from Bernstein called it (comes with an explanatory graph).

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