NYT: China Net Sold US Bonds in Jan and Feb

[rdgmail]

Confidence Reviving in March? I doubt it.

http://www.nytimes.com/2009/04/13/bu...l?ref=business

"Chinese reserves fell a record $32.6 billion in January and $1.4 billion more in February before rising $41.7 billion in March, according to figures released by the People’s Bank over the weekend. A resumption of growth in China’s reserves in March suggests, however, that confidence in that country may be reviving, and capital flight could be slowing."

[Supercilious]

Re: NYT: China Net Sold US Bonds in Jan and Feb

Or it means they fudged their pants and they started a campaign of sterilization like there is no tomorrow...

Anyway it's a little too early to tell precisely. I smell superponzi acceleration of the currency manipulation scheme, but it will take another few months to be able to tell for sure what exactly the Chinese are doing.

If the data from PBoC is correct, they got in Q1 2009:
$7.7 bil net increase in reserve
$62 bil trade surplus.

Considering that the yuan is still frozen at 6.8 that just doesn't look good

[nero3]

Re: NYT: China Net Sold US Bonds in Jan and Feb

China is all in. What they are doing is bumping the money supply like crazy. In 07, they were worried about a bubble in the stock market, now they don't care. It's a one way ticket, and there is no way back. It's like the Nikkei from 1975-1989, all over again. Normally bumping the money supply like that would cause very bad inflation, but if the perceptions in the market goes their way, as they are hoping, the dollar get's crushed, and the hot money flows into China, that will hold down inflation. The russians might do something similar to, pulling a crazy Ivan. When all the emerging economies, the creditor nations of the US are doing this at the same time, the US is bankrupt or at least on a steady path to very high inflation.