Chinese M.A.D.ness!

[DrYB/C]

If you thought China was immune, you were wrong:

1. Lehman Dynamic Spreads Through Chinese Economy
http://www.bloomberg.com/apps/news?p...d=agyX84Lq25hA

2. Economy rocks China factories
http://www.usatoday.com/money/world/...terstitialskip

Possibly related:

1. China releases terror blacklist in Olympic plot
http://ap.google.com/article/ALeqM5i...DoQPQD93UV7Q00

[phirang]

Re: Chinese M.A.D.ness!

this is actually good news, in a very convoluted yet material way...

[Jay]

Re: Chinese M.A.D.ness!

this is actually good news, in a very convoluted yet material way...

Where is the muhahahaha?! ;)

[touchring]

Re: Chinese M.A.D.ness!

Things are getting real bad. Muahhaaha.

Time to dump US govt debt. They need all the money back home.

http://online.wsj.com/article/SB1224...googlenews_wsj

Mr. McCormick is visiting China as Washington tries to rally support for its $700 billion bailout of the U.S. financial system. The bailout would likely involve major buyers of U.S. Treasury bills, such as China, buying even more U.S. debt.

[phirang]

Re: Chinese M.A.D.ness!

China has to buy more debt: if it doesn't, the US will just produce unsterilized debt that'll sink China's reserves.

China knows it's fked.

How fked is a different matter... depends on sov credit

[c1ue]

Re: Chinese M.A.D.ness!

China has to buy more debt: if it doesn't, the US will just produce unsterilized debt that'll sink China's reserves.

Huh? It seems that the US is already producing unsterilized debt. $3 trillion and counting. Its like a cop shooting a guy and then saying "STOP! or I'll shoot!"

If China was smart, they'd be using their dollar pile to lend to all those non-swap nations which are needing dollars.

[phirang]

Re: Chinese M.A.D.ness!

Huh? It seems that the US is already producing unsterilized debt. $3 trillion and counting. Its like a cop shooting a guy and then saying "STOP! or I'll shoot!"

If China was smart, they'd be using their dollar pile to lend to all those non-swap nations which are needing dollars.

Huh? If the US truly printed money, like the economically-illiterate Jim Rogers says it does, then there'd be inflation up the yingyang.

China will needs its dollar pile to refi the US. If it doesn't, then yea, we'll sink the fker by really printing money.

[labasta]

Re: Chinese M.A.D.ness!

If you thought China was immune, you were wrong:

1. Lehman Dynamic Spreads Through Chinese Economy
http://www.bloomberg.com/apps/news?p...d=agyX84Lq25hA

2. Economy rocks China factories
http://www.usatoday.com/money/world/...terstitialskip

Possibly related:

1. China releases terror blacklist in Olympic plot
http://ap.google.com/article/ALeqM5i...DoQPQD93UV7Q00

I remember an article by EJ not that long ago to watch out for recession in the US creditors' economy. I believe it was under his analogy of the US 2008 to be similiar to Germany 1930.

This is the prelude to capital flight as Chinese "buy-backs" dry up, ending an era of globalisation, is it not?

[c1ue]

Re: Chinese M.A.D.ness!

Huh? If the US truly printed money, like the economically-illiterate Jim Rogers says it does, then there'd be inflation up the yingyang.

Perhaps you don't remember so good.

The entire iTulip thesis is based on the premise that the US WILL print money - or at least depreciate the dollar - so that existing monstrous debt burdens will become manageable.

This does mean inflation - or so even the Ivory Tower economists theorize.

That the US is throwing literally trillions around also points to the iTulip thesis as being still valid (i.e. not disproven).

But of course, your view may be the 'oh my god my gold investments are down' thesis.

The same view in 2000 was 'my internet stocks are up 100%, this must truly be a new paradigm'.

[phirang]

Re: Chinese M.A.D.ness!

Perhaps you don't remember so good.

The entire iTulip thesis is based on the premise that the US WILL print money - or at least depreciate the dollar - so that existing monstrous debt burdens will become manageable.

This does mean inflation - or so even the Ivory Tower economists theorize.

That the US is throwing literally trillions around also points to the iTulip thesis as being still valid (i.e. not disproven).

But of course, your view may be the 'oh my god my gold investments are down' thesis.

The same view in 2000 was 'my internet stocks are up 100%, this must truly be a new paradigm'.

I fear the i-tulip thesis is predicated on faulty assumptions...

[Guest]

Re: Chinese M.A.D.ness!

Ask Finster about "latent inflation", as he employs this concept everywhere heavily. Your objection:"If the US truly printed money ... then there'd be inflation up the yingyang" according to his logic at any rate, is invalid. Finster formally employs decades worth of latent inflation which only becomes "unlocked" at certain narrow junctures in time. He uses this "latency" notion to explain how petroleum apparently rose 600%-1200% in nominal price, while the USD only declined 40% vs. a basket of currencies in less than a decade (it was all an inflationary illusion of a rise). What he implied by that of course was that all currencies somehow dropped by 1200% against petroleum due to the sudden unlocking of 1200% of "latent inflation". If his theory were valid then the US could be hyperinflating the monetary aggregates today and not one jot of inflation need necessarily be manifest at present. '

I don't know. Square your assumptions on that question with his maybe? Then we'll all know how to figure it out better? :rolleyes:

Huh? If the US truly printed money, like the economically-illiterate Jim Rogers says it does, then there'd be inflation up the yingyang. China will needs its dollar pile to refi the US. If it doesn't, then yea, we'll sink the fker by really printing money.

[FRED]

Re: Chinese M.A.D.ness!

Perhaps you don't remember so good.

The entire iTulip thesis is based on the premise that the US WILL print money - or at least depreciate the dollar - so that existing monstrous debt burdens will become manageable.

This does mean inflation - or so even the Ivory Tower economists theorize.

That the US is throwing literally trillions around also points to the iTulip thesis as being still valid (i.e. not disproven).

But of course, your view may be the 'oh my god my gold investments are down' thesis.

The same view in 2000 was 'my internet stocks are up 100%, this must truly be a new paradigm'.

The iTulip premise is that all the money that is needed to produce a major US inflation already exists outside the US.

That the Dollar Cartel will disintegrate under stress of a global depression.

That the dollar will have a reduced role in the global economy, closer to its pre-1971 role constrained by a non-dollar international currency standard or other discipline.

That Americans will have to buy imports with earned foreign exchange like everyone else.

That imports will therefor rise in price.

That means traded goods prices that Americans are used to buying cheaply will become expensive.

This will drive American re-industrialization.

[marvenger]

Re: Chinese M.A.D.ness!

thank god, work ya bastards!