Chinese Interbank Liquidity Freeze Continues For Third Day, Will Persist As Inflation Expected To Rise Over 5.5%

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Wed, 06/22/2011 - 08:48 | 1391314 Cassandra Syndrome
Cassandra Syndrome's picture

China in 2008 Western World crash mode, now there's a Black Swan.

Wed, 06/22/2011 - 08:52 | 1391315 qussl3
qussl3's picture

Cant keep fucking around with the RR anymore, PBOC has no choice but to raise rates.

Wonder how long Superman Stevens can keep jawing up the AUD.

Wed, 06/22/2011 - 09:19 | 1391380 ivana
ivana's picture

looking at AUD/YEN , considering yen repatriation ... really miracle.

Hope ZH will one day investigate and inform us with truth behind this scam.

Remember the "power" of powerz - AUD/YEN trade from March 15 till April 10th

Wed, 06/22/2011 - 11:01 | 1391781 sheep92
sheep92's picture

No choice?

They can do whatever they want.  Why would you think they are going to intentionally crash their banking system ?  Just so doomers on ZH can get rich ?

dream on.

Wed, 06/22/2011 - 08:50 | 1391317 dcb
dcb's picture

wait, they have high inflation, therefore according to the bank of england more Qe i called for. the chinese leadership in regards to ecnomics certainly takes better care of their people than ours does.

Wed, 06/22/2011 - 08:59 | 1391336 SheepDog-One
SheepDog-One's picture

The Chinese and Russian govt tells their people they better load up on gold and silver, ours tells us to rack up our credit cards and take out a mortgage. Yet we call them evil communists. 

Wed, 06/22/2011 - 09:49 | 1391460 writingsonthewall
writingsonthewall's picture


It seems that people only see what they want to see...which is fine....but I hate it when they expect the rest of us to join them in their dellusion.

....and then there are those who play on it for their own gain....

Wed, 06/22/2011 - 09:03 | 1391337 reload
reload's picture

Lets hope for the sake of China that the NBC is not as hopelessly incompetant as the BOE.

Wed, 06/22/2011 - 09:15 | 1391366 SheepDog-One
SheepDog-One's picture

Well maybe China can have a 'confidence vote' and set it all straight.

Wed, 06/22/2011 - 08:53 | 1391318 qussl3
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Wed, 06/22/2011 - 08:57 | 1391320 101 years and c...
101 years and counting's picture

maybe ben will initiate QE3 and send that money to china. 

Wed, 06/22/2011 - 09:13 | 1391369 Josh Randall
Josh Randall's picture

+++ Of course he will, or do the twist or get the money there some way - unofficial WWIII b!tchez, this is economic warfare

Wed, 06/22/2011 - 09:00 | 1391327 SheepDog-One
SheepDog-One's picture

Certainly glad everything so great here in america where the DOW wont even shed 5 points hell we're in boom times I guess.

Wed, 06/22/2011 - 09:02 | 1391330 Central Bankster
Central Bankster's picture

Or they could just let the Yuan rise to its free market exchange rate and inflation will drop.

Wed, 06/22/2011 - 09:03 | 1391335 qussl3
qussl3's picture

Till they cant export anymore, and the resulting job losses blows everything up.

Yeah that'll work.

Wed, 06/22/2011 - 09:08 | 1391354 qussl3
qussl3's picture


Wed, 06/22/2011 - 09:09 | 1391362 SheepDog-One
SheepDog-One's picture

Funny, we sit here in 'borrow and consume' bankrupt print-it nation and lecture others how they should be dealing with their inflation and how they should properly value their currencies. If america has 1 commodity going for it its ultra arrogance.

Wed, 06/22/2011 - 09:00 | 1391338 Going Loco
Going Loco's picture

Meanwhile in the UK (from Citywire) the newest member of the UK’s interest rate-setting committee has voted against raising rates, leaving just two members out of nine in favour of a shift from record lows of 0.5%... The pound dropped against the dollar and euro after the Bank of England published the minutes from its latest monetary policy meeting, in which Ben Broadbent cast his first vote. He replaced Andrew Sentence who had been calling for interest rates to rise for months in order to tackle rising inflation. Only Spencer Dale and Martin Weale are now behind an immediate rise in rates.... The bank faces above-target inflation, with CPI running at 4.5% in May on an annual basis. ...The publication of the minutes comes after comments from committee member Paul Fisher yesterday that officials haven’t ruled out extending their quantitative easing policy to support Britain’s ailing economy....

and one of our big energy companies just announced price rise 19%... and my currency has lost 98% of the value it had when I was born. Store of value gone beyond redemption. Unit of exchange next duck in the row.  I could wish the PBOC were in charge of UK monetary policy. Got sterling? Sell.

Wed, 06/22/2011 - 09:05 | 1391341 Going Loco
Going Loco's picture

Bloody computers. Duplicated post. 

Wed, 06/22/2011 - 09:02 | 1391351 UnpatrioticHoarder
UnpatrioticHoarder's picture

First hints that a financial crisis was kicking off in the US was Feb 2007 as I recall, then a bunch of MBSs were written down in July, then equities topped late 2007, fell into early 2008, suckered people like my pal Trent, equities bottomed March 2009, so that all took 2 years.

Where is China up to in this time frame I wonder. Or will it play out quicker due to less transparency and the possibility that China will panic faster due them never having had one of these home-grown financial crisis thingies for at least a few hundred years.

Wed, 06/22/2011 - 09:03 | 1391352 Sancho Ponzi
Sancho Ponzi's picture

Didn't Bernanke claim he could thwart inflation in 15 minutes? Why isn't that working in China?

/sarcasm off

Wed, 06/22/2011 - 09:07 | 1391360 thetrader
thetrader's picture

credit crunch coming up....despite the liquidity provided


Wed, 06/22/2011 - 09:13 | 1391371 ivana
ivana's picture

... and only "chosen" will embark on Ben's arc.

Those chosen zombies will than terrorize rest of (western) world

Wed, 06/22/2011 - 09:08 | 1391361 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

Dizzying New Heights of Global Criminal Enterprise...

Wed, 06/22/2011 - 09:10 | 1391364 SheepDog-One
SheepDog-One's picture

Stacking BB's a mile high.

Wed, 06/22/2011 - 12:42 | 1391995 slewie the pi-rat
slewie the pi-rat's picture

yup, irony:  china's banksters heard the one about helping bail the EU Titanic, and, within 24 hours---nomo liquidity!  now, nomo pomo!


Wed, 06/22/2011 - 22:27 | 1393690 janus
janus's picture

I don't know nearly enough about international finance, so could someone confirm or dispel my thoughts on this:

It looks to me as if the entire world is exporting inflation to China (including most of the BRIC nations), and since the US is both agressively destroying the dollar and defending our right to do so, isn't China (because of the Yuan's relationship with the dollar) going to be forced into a sort of nuclear corner -- where they must either totally abandon the interests of their people or sabotage the economic super-structure?

Wed, 06/22/2011 - 23:18 | 1393765 Mediocritas
Mediocritas's picture

The best way for China to deal with domestic inflation would be to freely float the Yuan. Sure, they have allowed it to appreciate steadily against  the US dollar, but nowhere near enough.

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