Having inflated the US housing bubble with its never-ending intervention to keep the Yuan weak and pumping the procceds into US Treasuries (the so-called “conundrum”), China is swooping into buy some of the wreckage that the global imbalances of production and consumption wrought. CIC, the sovereign wealth fund of China is set to invest $2 bln in toxic assets via the PPIP program. Make it $2 trillion, and we’ll call things even.