Macro Man is back in the saddle this morning and somewhat bemused to see that the world has gone China-recovery mad. Both the comment section of yesterday's post and his email inbox this morning are crammed full of observations about the bottoming of Chinese equities and the manufacturing PMI.

While it factually true that both have bounced, Macro Man is withholding judgement. After all, the Shanghai composite is closer to its recent lows than the US homebuilders index, and he doesn't see anyone falling overthemselves to call a recovery in that industry. More importantly, we should all remember that things don't move in a straight line forever, and China has cranked up a large inrastructure stimulus. Indeed, there will be a period of improved growth in the US this year...just as there was last year.

Looking elsewhere, Macro Man sees little else but doom and gloom. Indeed, if he were the religious type, he might be worried about the impending approach of the Apocalypse.

Yet another emerging market currency has been splattered today, as the Kazakh tenge has finally been devalued by 20% after months of pressure. The KZT was in vogue a couple of years ago as a sexy long....but another one of Macro Man's rules of thumb is never to trade a currency named after a movie character (the KZT is known as the 'Borat'.) The pressure on the KZT has been mirrored in "real" markets, where the CEE currencies such as HUF and PLN have been obliterated in the past few days, with market liquidity collapsing. So the Great Unwind has further to go.

Indeed, somewhat ominously, LIBOR rates have started to tick up, with three month dollar cash fixing some 14 bps higher over the past couple of weeks.