China's Paul Volcker

There is no doubt that the Chinese are masters in studying history. It is a sad day for the global economics of the Western World when the most respected banker is from a communist country. The Chinese central bank has raised reserve requirements again as it tackles inflation. O/n rates are at 7.47 % and reserve requirements will rise to 16.5% from 16%. Talk about constraining the banks. Consider the US banks that have 8.5% in tier 1 capital ( of what we know). In addition, US banks have been exposed for their off balance sheet entities-who knows what is out their in numbered company land.