Since the crisis in China's housing market begin to explode as Evergrande's massive ponzi pile-up started to plunge - which followed China's tech crackdown that smashed Chinese tech firms lower, and China' education system crackdown which pummeled China's education stocks - the 'expected' contagion has apparently been modest at worst and Washington's politerati have been quiet on the issues "over there."
However, the last couple of weeks have seen the teflon market in the US start to shake a little...
Which may help to explain why Secretary of State Antony Blinken has suddenly decided to chime in, demanding China "act responsibly" in how it addresses (translation: bails out) the potential impact of an Evergrande default crisis.
“China has to make sovereign economic decisions for itself, but we also know that what China does economically is going to have profound ramifications, profound effects, on literally the entire world because all of our economies are so intertwined,” Blinken said Wednesday in an interview in Paris with Bloomberg Television.
“So certainly when it comes to something that could have a major impact on the Chinese economy we look to China to act responsibly and to deal effectively with any challenges,” he added.
In other words - "fix it!" - before this things blows up all the good work we have done by puking trillions of free money into markets. Ironically, this demand is coming as US political chaos escalates.
We look forward to Beijing demanding that Washington "act responsibly" in dealing with USA's sovereign risk...
The message: "Don't throw stones in glass houses (or shower there)."