Just in, this will bail out China, London, and other Foreign Banks

[xtronics]

Re: Just in, this will bail out China, London, and other Foreign Banks

X,


But recently this has stopped.

The question is: is this due to a policy change on China's part? i.e. no more buying of Treasuries to keep the yuan undervalued vs. the dollar?

Something has happened:

http://finance.google.com/finance?q=USDCNY

You will noticed what appears to be a peg put in place in the last few days.

[Supercilious]

Re: Just in, this will bail out China, London, and other Foreign Banks

Something has happened:

http://finance.google.com/finance?q=USDCNY

You will noticed what appears to be a peg put in place in the last few days.

Yep. In the inflation growth debate , it seems that the growth faction won.

The sad part is that there is no real debate, because there are no good options left for them:

http://piaohaoreport.sampasite.com/c...re-ignites.htm

Welcome to iTulip xtronics !

[xtronics]

Re: Just in, this will bail out China, London, and other Foreign Banks

Yep. In the inflation growth debate , it seems that the growth faction won.

--snip --

Welcome to iTulip xtronics !

Nothing in the news speaks directly of this??

Thanks - I have been working at import deals from China - I think this changes things. Their export prices in US$ (as The Outback Oracle has also pointed out) were ballooning.

The Chinese are really in a spot - they have a lot of US$ and need to keep growing to keep the calm at home. This should stop the price increases at Wallmart for now.

I expected the DOW to go up today after the senate passed the bill - instead it took a dive?? I think the house will pass this bill - eventually - and there should be a false rally. I really think this bill is really bad news - and once it passes I expect more and more to line up for their handout.

[VIT]

Re: Just in, this will bail out China, London, and other Foreign Banks

Lukester this is not a gambit. It's a scam presented as a gambit. Remember the fall of Bretton Woods? The Nixon Shock? At that time everybody was scared that without any gold backing nobody would buy dollars, and a lot of people panicked ... well ...

If deficits and debt are transformed in negative interest loans they become a very profitable form of investment... I know it's a little bit counterintuitive, but try to imagine what if you would get a credit card with -30% interest rate. What would you do ? What would happen to the bank that has only one major client (you) which has only negative interest credit cards?

Probably it is not correct to call it "scam". Everybody benefited in this scheme:
- US as originator of it
- China by rapid industrialization
- Oil countries by creating SWF funds, buying western assets and creating real building / infrastructure inside.

But it can not be infinite game. Now we can see "game over". The question is if the "end" will be in controllable manner or not

[Supercilious]

Re: Just in, this will bail out China, London, and other Foreign Banks

Probably it is not correct to call it "scam". Everybody benefited in this scheme:
- US as originator of it
- China by rapid industrialization
- Oil countries by creating SWF funds, buying western assets and creating real building / infrastructure inside.

But it can not be infinite game. Now we can see "game over". The question is if the "end" will be in controllable manner or not

There is no end, because it's designed as cyclical process, And the collapse happens, but it happens in other countries.

http://www.itulip.com/forums/showpos...09&postcount=7

This is the worse form of monetary (imperial) neocolonialism.

And it will go on because nobody is doing anything to stop it.

The Americans are blinded with scare tactics (WMD, AQ, total economic collapse and now even national collapse and Martial Law) and kept under control by debt.

The ROW governments are lured into this scheme with hollow promises of economic growth, and foreign corrupt, totalitarian or simply idiotic governments are buying into it.

I personally can't do anything else than shake my head and watch in dismay the ordered and optimistic march of their victims towards disaster.

Look what happens to the mighty Euro:

http://www.telegraph.co.uk/finance/f...-traction.html

"The interbank market has collapsed," said Hans Redeker, currency chief at BNP Paribas.
"We're now seeing a domino effect as the credit multiplier goes into reverse and forces banks to cut back lending to clients," he said.
Mr Redeker said the latest alarming twist is a move by banks to deposit €28bn in funds at the European Central Bank in a panic flight to safety. This has jammed the mechanism used by the authorities to shore up the financial system in a crisis.
"The ECB is no longer able to inject liquidity because the money is just coming back to them again. This is extremely serious. If monetary policy is no longer working, there is a risk that the whole system will blow up in days," he said.

WTF is that ? They have a liquidity crisis in the EU financial system, ECB throwing money at it and the money bounces back? What's that? Jean Claude Trichet trying to play tennis with the EU financial system without realizing he is on a pelote court?

How is this possible when EU has such tight deficit controls?
How is this possible when the dollar is supposed to tank as a worthless currency being replaced by the sound euro?

There are no "irrational'markets. There are only markets for which we completely miss the fundamentals.

Now I'm going to put back my tinfoil hat and watch the Great Game.