The Dumping Begins: Chinese Reserve Managers Notified That Any Non-USG Guaranteed Securities Must Be Divested

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Tue, 02/09/2010 - 23:05 | 224410 Scooby Dooby Doo
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Must be the big sell-off.

Tue, 02/09/2010 - 23:06 | 224413 Stu
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And so it begins.

Tue, 02/09/2010 - 23:42 | 224443 Stevm30
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Historians writing about this in the future HAVE to include the two feet of snow on the ground in Washington DC.  It makes for a perfect setting for a world crisis.

Wed, 02/10/2010 - 00:29 | 224515 Anonymous
Anonymous's picture

I'm skeptical about the news article. Had the Chinese actually notified US securities dealers to this effect as it claims, S&P E-Mini would be tanking as the price of borrowing money by corporations would be expected to rise a lot. It has drifted a little lower in the last seven hours.

Mon, 02/15/2010 - 02:00 | 231191 Anonymous
Anonymous's picture

That's a solid point. There has been no major fluctuation in the market to indicate the reality of a Chinese divestment of U.S. assests. Although, if ever they do decide to enforce harsh polices like the one cited in the article there would obviously be a significant hemorrhaging of the financial system here at home.

Tue, 02/09/2010 - 23:09 | 224414 Number 156
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We may now witnessing the opening salvos of economic warefare.

This can only end in tears.

Wed, 02/10/2010 - 00:06 | 224482 Gold...Bitches
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This can only end in tears.

thats why gold is attractive.

Wed, 02/10/2010 - 17:47 | 225612 Anonymous
Anonymous's picture

Yeah, gold is fabulously awesome... when you're hungry and cold. Because it's so good at providing you shelter and it tastes great with some butter and salt.

Oh right. Gold is only worth something if there are people who have the disposable income to buy it or the resources to use it for something. But good luck feeding yourself with your stockpile of it when everything tanks.

Want to know what's REALLY worth something in a real crisis? Food, drinking water, shelter, guns and bullets, and knowledge. That's it.

Wed, 02/10/2010 - 20:09 | 225867 Anonymous
Anonymous's picture

I am in agreement with your security in Gun's & Butter {so to speak} can you tell me how this will effect me in real terms, rather than the eco-gobblety-gook that mean little or nothing , unless in laymens terms. Regards, Donald

Wed, 02/10/2010 - 02:08 | 224598 Anonymous
Anonymous's picture

And I hope it includes India, because they've been way too far under the radar considering how many jobs they received from us.

Thu, 02/11/2010 - 13:46 | 226915 Anonymous
Anonymous's picture

Who sent the jobs there....of course the cannot be taken forcefully. You do not seem to be very well informed.
Why Did You not keep your jobs? Ask your Corporations.

Thu, 02/11/2010 - 13:49 | 226927 Anonymous
Anonymous's picture

Who sent the jobs there....of course the cannot be taken forcefully. You do not seem to be very well informed.
Why Did You not keep your jobs? Ask your Corporations.

Wed, 02/10/2010 - 12:55 | 225056 Anonymous
Anonymous's picture

Delicious golden tears, for those well prepared.

Golden shower for those not prepared.

Tue, 02/09/2010 - 23:08 | 224415 JackES
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Glad to see they act finally

Wed, 02/10/2010 - 05:11 | 224663 Problem Is
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On the edge of oblivion

A ship of fools sailing on

Rip it up... move down

Rip it up... move it down to the ground

Across the nation, around the world


Tue, 02/09/2010 - 23:16 | 224420 Scooby Dooby Doo
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Is Goldilox/Cramer going to redefine BRIC out of spite?

I mean de-acronymize or whatever.

Tue, 02/09/2010 - 23:16 | 224423 docj
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So, how much cashola are we talking about here?  Eh?

Tue, 02/09/2010 - 23:18 | 224428 docj
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BTW, looks like insiders are back to selling as fast as they can.

Tue, 02/09/2010 - 23:19 | 224431 Scooby Dooby Doo
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They are up to their eyeballs in Freddie/Fannie/Farmer-ie.

Tue, 02/09/2010 - 23:22 | 224433 docj
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Hey, doesn't Da Fed have a metric crapton of that on their balance sheet too?

What could possibly go wrong?

Tue, 02/09/2010 - 23:25 | 224436 Number 156
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We will start finding out tomorrow morning. when the markets open.

They're going to start a stampede in asset backed securities.

Tue, 02/09/2010 - 23:16 | 224424 putbuyer
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It's funny. I still often try to educate the drones on yahoo message boards that not all shit goes up, even with good cooked books. They never listen.

The movie "The Road" was interesting. I suspect these same idiots will be killing humans for food.

Tue, 02/09/2010 - 23:22 | 224434 Missing_Link
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Why even bother posting there?  They can't be educated.

Wed, 02/10/2010 - 10:31 | 224813 Anonymous
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Right, with a name like 'Putbuyer' you should be posting here anyway - where the prevailing belief is that all markets HAVE to go down all the time, and when they don't actually go down it is solely due to "stupidity"/"book-cooking"/"PPT"/"Federal Reserve". ANYTHING but ACTUAL MARKET ACTIVITY which would just be way too confusing.

Don't bother putting any contrarian/optimistic info on here either - ask Leo about how immature these boards can be with contrarian information.

Wed, 02/10/2010 - 12:19 | 225001 Ripped Chunk
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Whaaaaaa!  I want to go back in time to 1997!

Wed, 02/10/2010 - 13:58 | 225134 faustian bargain
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Tue, 02/09/2010 - 23:17 | 224426 ozziindaus
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Easy fix. Offset dump by an FR monetization pump followed by sales of F18's to the Dalai Lama.

Tue, 02/09/2010 - 23:26 | 224437 Scooby Dooby Doo
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I'm sure the Lama is getting his F-18's from the Chinese. It's 14% off all flying objects for Valentines day week.

Tue, 02/09/2010 - 23:26 | 224438 Number 156
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Wed, 02/10/2010 - 01:21 | 224567 Anonymous
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ROTFL! I love it.

Wed, 02/10/2010 - 11:37 | 224918 Trifecta Man
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The Dalai Lama.  I never saw that painting.

Tue, 02/09/2010 - 23:18 | 224429 Tahoe
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bounced at 1063.00 @21:41EST.

Tue, 02/09/2010 - 23:19 | 224430 Anonymous
Anonymous's picture

hory sheet

Tue, 02/09/2010 - 23:28 | 224439 Anonymous
Anonymous's picture

Well, when you're the last man standing with cash, as Buffett says. Are they devious enough to destroy US and Europe financially? Hell, why not, they'd just buy commodities on the pennies for the future versus paying on the dollars. The sad thing is they could do it, heck, they got enough real estate for 15 years.

Wed, 02/10/2010 - 00:08 | 224485 Anonymous
Anonymous's picture

The middle kingdom was always very self-sure, self-centered, and self-sufficient. It was always the barbarians that brought tribute to them. Their culture reigned supreme. Western trade wanted their porcelains, their lacquerware, teas, spices, silks, ornate hand carvings, jade. They wanted gold and silver. Early western fortunes were made on the Chinese exports. Like selling beads to Indians. Except the grubby uncivilized group was the Europeans.

China only opened to global trade upon force, and then by desperation to rebuild. Now that they have sufficiently mastered the engineering techniques and scientific method of the west (and now that the West is totally broke), they will shut the borders and concentrate on a renewed kingdom.

Funny thing that. We NEED them. They really don't need the West. They have goods, production, a surfeit of savings. Time to dump the presumptuous round-eyes. China's the future. The west will be internecine warfare and bickering about the rapidly dwindling remainders of a once-great set of nations.

Wed, 02/10/2010 - 12:35 | 225030 Anonymous
Anonymous's picture

Thank you!

It is good to see someone who actually knows what is going on with China. 9 times out of 10 people will say "China needs the U.S. to buy its stuff" but that frame of logic is based off of lack of knowledge.

Since when did a population of 1 billion need a population of 330 million to buy its goods when the smaller population doesn't have any money? Thinking in smaller terms, could you imagine 3 people building goods all to sell to 1 person and that 1 person has nothing to offer in return for those goods?

Unfortunately there is only a small list of possible outcomes from this scenario.
1- The U.S. goes into protectionism mode (which it is already starting to do by imposing tariffs on imported goods)- Worst possible idea as it is too late to do so.
2- The U.S. pays off its debts by selling away resources (land, oil access rights, fisheries rights etc)- Possible but not probable. I don't see the citizens of the U.S. going for this, but who knows, I've heard toll roads/bridges are already being sold to foreign companies to manage.
3- The U.S. imposes inflation to be competitive on a global scale in terms of manufacturing and real goods production. - This would anger anyone who currently holds American debt as it would lose its value tremendously. Also it would anger U.S. citizens who would not want to work for pennies a day to be competitive with china's manufacturing.

Tue, 02/09/2010 - 23:34 | 224444 Cursive
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A lot of ZH regulars think the dollar is shit.  Well, gold sinks and shit floats.  That's life.

Wed, 02/10/2010 - 01:37 | 224574 KevinB
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I often hear this, but whenever I'm done and I look, it's at the bottom of the bowl. It never floats.

I must have some heavy shit, man.

Wed, 02/10/2010 - 01:48 | 224582 Quantum Noise
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I'm sure the Chinese had something to do with it... who knows how much Pb is in the Chinese version of Yellow No.5....

Wed, 02/10/2010 - 01:59 | 224588 Anonymous
Anonymous's picture

I know this is off topic but, I as a nutritionist I will tell you that a healthy fesses will float not sink. Most likely too much meat in your diet needs more fiber from fruits and vegetables.

Wed, 02/10/2010 - 12:21 | 225009 Ripped Chunk
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Better get on that puffed wheat diet..........................................or sink

Wed, 02/10/2010 - 02:37 | 224621 Anonymous
Anonymous's picture

I think it means you are a healthy eater. If you eat junk food, greasey food, your poop will float. At least, that's my understanding, but I'm not a poop expert, although I've been told I'm full of it more frequently than I would like.

Wed, 02/10/2010 - 06:45 | 224692 Anonymous
Anonymous's picture

Shit only floats if you eat enough roughage

Wed, 02/10/2010 - 06:48 | 224693 Anonymous
Anonymous's picture

Shit only floats if you eat enough roughage.

Wed, 02/10/2010 - 08:02 | 224711 Anonymous
Anonymous's picture

Ducks and witches float- must mean they weigh the same and are both made of wood. Burn the witch!

Wed, 02/10/2010 - 12:15 | 224994 Anonymous
Anonymous's picture


Tue, 02/09/2010 - 23:34 | 224445 Gilgamesh
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China trade balance +$14.2B vs fcast +19,2

let's see about that bounce...

Tue, 02/09/2010 - 23:35 | 224446 Going Down
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'Nuf Said

To secure ourselves against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy himself.

--Sun Tsu

Tue, 02/09/2010 - 23:35 | 224447 Gubbmint Cheese
Gubbmint Cheese's picture

meanwhile S&P futures say, "Pthh.. whatever.. China doesn't have the balls.. " they are off 7..



Wed, 02/10/2010 - 05:10 | 224662 1984
1984's picture

The Chinese don't bluff - hard to save face...

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