Asia Times' David Goldman Discusses The Imminent Chinese Asset Dump

Tyler Durden's picture

The Chinese dumping story is really catching on. After even Alphaville reprinted it, it seems that everyone in the blogospehere is aware of the imminent, and far greater than a Greece contagion, danger of Chinese dispositions. Here is David Goldman who originally broke the story for Asia Times' Inner Workings blog, discussing not only Chinese dumping and the implication for cost of capital (ca. 11 minutes into the clip), but shares color on the topic du jour, Greece, along with Rick Santelli and Larry Kudlow.


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Anonymous's picture

Tax, borrow, print - We are doing that now anyway. Are we in denial that we have not been pursuing such ruinous policies for many decades now ?

monmick's picture

Kudlow has turned quite negative recently. Maybe they are running out of Kool-Aid...

viahj's picture

Nah, they just switched to the sugar free stuff, looks the same but doesn't quite carry the same hopium high as the real stuff does.

Zina's picture

HINT: In the case of a nuclear war starts, take your car and rush to a remote rural area, as far as possible from any city with over 1 million inhabitants. Your chances of not being hit by a nuclear bomb will rise. My car already has a full tank.

David449420's picture

Good Plan. Let us know how you make out.

WaterWings's picture

E melhor com uma motocicleta. Mais rapido, melhor capacidade de escapar quando as ruas ficam lotadas. E pode esconde-la tambem quando o gas se acaba.

Anonymous's picture

Interesting that unions have to suffer pay cuts maybe up to 13%, but no discussion about writing off a percentage of the loan amount due. It's always the poor who are tied to the back of the truck and dragged down the street and the banks aren't required to give up anything. Then when wage earners are beaten to near death, their complaints are characterized as anarchistic terrorism.

Anonymous's picture

I'd welcome a nuke dropped on my head. Just go ahead and get it over with sooner rather than having to live through the shithole that is the spiraling down of our society thanks to the cunt bags in DC and the corporate interests that use them like puppets.

Seriously, I'm 30, I've been married a couple years, my wife turns 28 soon, and I'm dreading having the "this economy is too fucked to think about having a kid in the next 3 years" convo.

It's gotten that bad for me that I have a relatively well paying job but cringe at the thought of "just getting by" after I start sinking money into a kid.

tenaciousj's picture

I've been thinking about it a bit and I know a lot of people like to day dream of a Mad Max type scenario.  But the further we go along, the more I'm starting to lean toward Dark Ages 2.0

Nolsgrad's picture

Riley:We'll hit 14,000 in the next 18 months



Anonymous's picture


it all has to the do with the direction of the dollar...

deflate the dollar to inflate the markets...WHAT ARE YOU MISSING?

it doesnt mean you will be wealthier...infact the dollar delfation will most likely equaly the market inflation...for a net nothing

wake up...and stop acting like you have a clue what you are talking about.

suteibu's picture

That's the scariest thing I've read today.

buzzsaw99's picture

Yeah, they'll buy treasuries instead, that'll teach us a lesson we'll never forget. LMAO!!!

Anonymous's picture

While price is the arbiteur, this is nothing new. As has been shown in the last 2 releases of tic data, overseas purchases of agency and corp paper have been falling off since the end of '09. Recent talk of arms sales and Dali Lama visits only fanning the flames of whats been going on for the past few months. problem is it probably starts to attract more attention than vice versa

the grateful unemployed's picture

the Chinese calling the dollar peg, an exchange rate policy, is the height of disingenuousness. The three branches of China's government, the politburo, the military, and the poor and ignorant masses, which brandishes influence through the implied threat of revolt, maintains that countries checks and balances. The disruption caused by a politburo decree to verticalize China's economy would probably result in social unrest, and cause the complete closing down of China, but so far incrementalist policies are either absent, or showing no real effect. Applying austerity measures during a recession is political suicide, at least in this country. Should China really go its own way, they might try that, and increasing wages sounds like the first shot fired across the bow. (That is what Obama should have done in the US, and they should have RAISED interest rates several years ago to reflect RISK, but in a democracy the bankers own the peoples house) Has China finally created the workers paradise? We've already see the Workers Hell. Who knows?

Anonymous's picture

11 trillion $ is J.Stiglitz's estimate for the total of government's support to the U.S financial system, and these morons are talking about Europe's round heels....Food for thought instead of Kool-Aid:

"The most worrisome part is that we are nearing the end of our fiscal and monetary ability to bail out the system. In 2008-09 we were lucky that major countries had the fiscal space available to engage in stimulus and that monetary policy could use quantitative easing effectively. In the future, there are no guarantees that the size of the available policy response will match the magnitude of the shock to the credit system.We are steadily becoming more vulnerable to economic disaster on an epic scale." Simon Johnson 02.09

Anonymous's picture

What about the effect on the dollar if China does sell MBS? something other than Treasuries: MBS rates up, housing prices down, growth and employment down, equities down (carry trade unwinds), dollar up.

...or, if funds from MBS are just re-invested in Treasuries, can the Fed just by more and system is stable (relative to present)...

Anonymous's picture

The bailout of Greece will be tiny compared to the bailout of California.

Rick64's picture

Santelli a voice of logic.

doggis's picture

so let me get this straight - china will dispose of risk assets and buy treasuries and AGENCY (perhaps riskier than risk assets) debt. hmm, but the fed just bought all the agency debt from smells a bernake hatched fart. china to pick up where the fed has left off on mbs purchase. then in 6 months the fed goes QE 2.0 and buys back all the agency crap from china. anyone want to place odds on this?

Anonymous's picture

'Santelli a voice of logic.'

Unfortunately he is not on enough. There should be Santelli TV on 24/7.


Palin/Santelli 2014

Anonymous's picture

A lot of chest thumping going on here. Pretty courageous for people in a rapidly decaying society.

Anonymous's picture

To spend $1 trillion dollars @ $1 million per day you would have had to start spending at the end of the Roman Empire. How big does sovereign debt have to be too big? Are we talking "The debt is too big to fail?"

Jesse's picture


Whenever I listen to Larry Kudlow, I get the desire to scrape myself off with a stick afterwards.

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