Oil prices fell nearly 4 percent to below $70 a barrel on Monday as fear of a curb in Chinese bank lending dented optimism about the pace of economic recovery and a potential rebound in global energy demand.

On Wednesday we warned readers of a coming blow-up of the Chinese economy, calling it a “tinderbox waiting to catch a fire.” The problem, of course, is that the US is not the only country hell bent on ‘stimulating’ its economy back to life. Communist China is at it too!

China has once again snatched the leadoff spot in our daily lineup. And once again, they’ve knocked the cover off the ball. The Chinese economy expanded at a dizzying 7.9%, their government announced yesterday. That far exceeds analyst expectations and China’s still-impressive 6.1% first-quarter growth.

Madrid, Spain

Two important headlines this morning, both of them fraudulent:

“Chinese economy bounces back,” says one headline in theInternational Herald Tribune.

“JPMorgan profit soars despite downturn,” says another.

BEIJING, The People’s Republic of China – If there’s a recession here in China, I don’t see it. Granted, I just stepped off the plane here in Beijing a few hours ago, but already the city feels much more vibrant than I expected, given the dire reports that keep appearing in the mainstream Western financial-news media. The Beijing economy appears strong.

Weber opens Pandora’s Box…  A record low for Capacity Utilization!  Do I hear a Chicken?  China’s economy grows 6.1%  And Now… Today’s Pfennig!

China to grow 8%? An end for Mark-to-markets?  What will the ECB do today?  Gold at a discount…. And Now… Today’s Pfennig!

This is the time of year in which many  investors really start to study corporate earnings, jobless statistics and all sorts of other state data in an effort to divine what’s next for China. But I simply prefer to head for the Wan Chai Street Market in Hong Kong, or the Temple Street Night Market across the harbor in Kowloon, and check on hairy crab prices as we approach the Lunar New Year.

A Santa Rally for the currencies?…  Waiting for the FOMC…  AUD and NZD rally…  China to try and keep growth above 8%… And Now… Today’s Pfennig!