tom: david folkerts-landau is with us from deutsche bank. the head of economic research, including having michael spencer in asia. in now david folkerts-landau china. does china have the institutions to work through the always, ever-present, trilemma that is out there. david: the facilitation of the pboc is extraordinary. definitely on par with some of the central banks i see around europe. from that point of view, policies very much carefully thought through. tom: everybody has been wrong on hard landing for years. of the seen devaluation headlines, depreciation, and the need for appreciation. what does china signal with the you want? david: that is a temporary thing. over the long term, the currency will have to appreciate further slowly, and the reason is every industrialist who has made 50 million in his backyard producing gadgets, he wants that to be located outside china. flow is going to produce continued downward pressure on the r&b. -- on the r&d. there are regulations and rules to moderate that. the longer-term pressure is down. fra