China moves a move

[Mega]

Hmm..... What to make of this:-
http://news.bbc.co.uk/2/hi/asia-pacific/7799541.stm
Mike

[Supercilious]

Re: China moves a move

Hmm..... What to make of this:-
http://news.bbc.co.uk/2/hi/asia-pacific/7799541.stm
Mike

That is a clear sign of lack of dollar liquidity. And it won't work. Brazil and Argentina tried to do something similar, before Brazil was forced to come hat in had for a swap line from the Fed and Argentina (not being in the graces of the FED) was forced to confiscate pension funds.

Pushing the ruble as an international currency (especially among the Stans) was high on Putin's agenda before the Russian reserves went in a dive...

I guess that soon we we'll find how much of those $2 trillion are real reserves and how much are just book entries hiding leveraged bad loans on the balance sheets of Chinese banks. Patience ....

[FRED]

Re: China moves a move

That is a clear sign of lack of dollar liquidity. And it won't work. Brazil and Argentina tried to do something similar, before Brazil was forced to come hat in had for a swap line from the Fed and Argentina (not being in the graces of the FED) was forced to confiscate pension funds.

Pushing the ruble as an international currency (especially among the Stans) was high on Putin's agenda before the Russian reserves went in a dive...

I guess that soon we we'll find how much of those $2 trillion are real reserves and how much are just book entries hiding leveraged bad loans on the balance sheets of Chinese banks. Patience ....

Meanwhile, back in the USA:

[Supercilious]

Re: China moves a move

Meanwhile, back in the USA:

Yeah, these days one doesn't need to watch surreal horror movies anymore. FED charts are way better.

[idianov]

Re: China moves a move

Meanwhile, back in the USA:

FRED, What does the BOPOGF series mean?

Igor

[audrey_girl]

Re: China moves a move

Meanwhile, back in the USA:

I thought this essay was very thought provoking; especially with the several fed charts he discusses. Very similar to Fred's - just as shocking/horrifying.

link:

http://www.financialsense.com/fsu/ed...2008/1219.html

to paraphrase an earlier poster commenting on such charts last month:

"how can this possibly be a good thing??"

comments on the link would be very much appreciated

happy holidays

[touchring]

Re: China moves a move

That is a clear sign of lack of dollar liquidity. And it won't work. Brazil and Argentina tried to do something similar, before Brazil was forced to come hat in had for a swap line from the Fed and Argentina (not being in the graces of the FED) was forced to confiscate pension funds.

Pushing the ruble as an international currency (especially among the Stans) was high on Putin's agenda before the Russian reserves went in a dive...

I guess that soon we we'll find how much of those $2 trillion are real reserves and how much are just book entries hiding leveraged bad loans on the balance sheets of Chinese banks. Patience ....

no need to guess, just silly singapore alone, government held reserves, including SWFs are more than $100,000 per person.

if china has $100,000 reserves a person, that will make $130 trillion. Of course, they don't have so much... $2 trillion if you consider in the Singapore context is like nothing....

$2 trillion is only $1500 for every Chinese citizen.

[FRED]

Re: China moves a move

no need to guess, just silly singapore alone, government held reserves, including SWFs are more than $100,000 per person.

if china has $100,000 reserves a person, that will make $130 trillion. Of course, they don't have so much... $2 trillion if you consider in the Singapore context is like nothing....

$2 trillion is only $1500 for every Chinese citizen.

Maybe China is moving into the dollar racket? If China can create demand for its currency for payments outside the Chinese economy, they have the beginnings of a reserve currency. Starting small, of course.

[GRG55]

Re: China moves a move

That is a clear sign of lack of dollar liquidity. And it won't work. Brazil and Argentina tried to do something similar, before Brazil was forced to come hat in had for a swap line from the Fed and Argentina (not being in the graces of the FED) was forced to confiscate pension funds.

Pushing the ruble as an international currency (especially among the Stans) was high on Putin's agenda before the Russian reserves went in a dive...

I guess that soon we we'll find how much of those $2 trillion are real reserves and how much are just book entries hiding leveraged bad loans on the balance sheets of Chinese banks. Patience ....

Hey, if bad loans are good, more of them must be better...right?

If throwing money at more unneeded factories is game over, then let's try subsidizing bad loans for more cars, eh.

China moots scrap incentives to boost car sales

Fri Dec 26, 2008 8:55am EST
BEIJING (Reuters) - China will offer incentives for people to scrap their old cars in an attempt to boost its flagging car market, Xinhua news agency said on Friday, quoting an unnamed official with the Ministry of Commerce.

The Ministry would give car owners subsidies to scrap their old cars and buy new ones, Xinhua said, and was planning other measures including tax cuts on new car purchases and improved credit services...

[FRED]

Re: China moves a move

FRED, What does the BOPOGF series mean?

Igor

We don't know yet. At the moment we throw this data into the bucket of data that demonstrate that The System is broken. Is this part of it reparable? What direct and indirect, immediate, and lagging impact on the banking, credit markets, and economy will it have?

We don't know. We do know that those who told us not to worry about the non-borrowed reserves and other Fed data that showed severe system dysfunction early this year were full of shit.

[pwcmba]

Re: China moves a move

Instant fix to the global economic woes: Issue a new $10,000 line credit card with zero percent teaser rate to each an every Chinese citizen.

[touchring]

Re: China moves a move

Instant fix to the global economic woes: Issue a new $10,000 line credit card with zero percent teaser rate to each an every Chinese citizen.

don't think it will work.

the culture in china is quite differnet from what you will find in the west. if things really go bad, people can go super budget. Try eating oatmeal with pickles every meal! lol

[Ted Q. Sipp]

Re: China moves a move

His target gold price is $10,000 per ounce. That's four zeros (and no derivation). He's pointing to a -Poom but the article pretty much sucks.

[kelton56]

Re: China moves a move

Meanwhile, back in the USA:

See the BEA report, issued Dec 17th, Tables on Page 7, Here.

U.S. Foreign Currency & Short-Term Assets, line 49, shows large Increases/ Financial OUTflows (cumulative 2008: $264 bn). It's a component of Line 45: US Government Assets Owned Abroad.

If you skip down a few lines to Line 54, U.S. Claims Reported by U.S. Banks, (BOPOPO Chart below) these categories show huge INflows in the same quarters this year.

Is this evidence of the Fed/Treasury buying foreign assets owned by U.S. Banks? Another form of stealth capitalization/nationalization?