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Rumor China To Be Branded Currency Manipulator At 1 PM
Update: Now it is getting really interesting - Reuters reports that according to a Senate aide, the currency report will be delayed. If all was to be smooth sailing, one wonders why...
Today, the Treasury will finally come out with its currency repo
Today, the Treasury will finally come out with its currency report, which will conclude whether China is or isn't a currency manipulator. While the fall out from the former could well be dire, and result in various adverse political and fund flow consequences, it appears that this is precisely what will be the outcome. Attached is a note from RHM Global according to which the adverse outcome is all but certain.
Strong Rumors That US Treasury Report Will Come Out Today and Name China As a Manpiulator
October 15, 2010Rumors are very strong that Treasury WILL issue its currency report at 1PM today. Obviously, if that’s true, China will be named as a “manipulator”.
We have been hearing rumors of this for the past three days, but it’s been impossible to believe.
However, three separate sources told us it would happen today. The Chinese are braced for this and the US will make it clear that there is nothing immediately actionable about this move, except that it triggers investigations, etc.
We have been very hesitant to write this because it seems to make no sense given the pre-G20 negotiations, but very trusted official sources say it’s true.
Chinese trade officials have asked that if they are named other countries be named as well, but given the dollar weakness it’s hard to figure out who they might be.
h/t Andy
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Perhaps this explains why Junker was supporting China, saying they were not a currency manipulator, earlier today (or yesterday).
Certainly explains the pressure on commodities and PMs.
Why am I always the last to know with regard to the markets and my cheating spouse? Maybe I should take up needle craft? :>)
CD, or anyone - can you please explain why a potential announcement like this (accusing China of currency manipulation) would put pressure on the precious metals? Are the sheeple to believe that if China merely "played fair" with the Yuan, everything would be fine in the ole US of A? ...I don't get it.
Because the entire world trade structure revolves around a bunch of big fat cheatling lying manipulative bastards following rules about cheating lying and manipulating. ONE of the defects and it fucks everybody. See france 1932.
see honor amongst thieves
So what???, Do you expect them sometime soon to also give a veredict on weather Heli-Ben is a market manipulator as well!
Trade war, bitchez!
Trade war = Depression.......most ZH readers already know this.
Will the D-word be official then?
isn't there a way to turn a trade war into a market rally somehow?
Do you mean that the Smoot-Hawley Act (aka "The Tariff Act") had unintended consequences? I am shocked, shocked to hear that! It's a good thing that Mr. Bernanke is a scholar of the First Great Depression and would realize the ramifications of repeating past mistakes.
You go Ben!
Trade war? Wake up! The Chinese have been kicking our butts for decades now. The war has already been fought and victory proclaimed. The USA is too drugged out on debt to accept it.
Yes ....and the Liberal was the crack dealer.
I'm convinced you can only get a Woodie if you use the word "Liberal".
Is that a Liberal in your pocket or are you just happy to see me?
He is pretty liberal with it.
Ahhhhhh .. The liberals a.k.a .... Scum of the earth, drugs, corporatism, debauchery...
. . . commie pinko fags
Fer chrissakes, my liberal brothers and sisters, have a sense of humor! It's a phrase from an old popular song.
JHC--is context so hard to discern?
The junkers are haters, dont worry about it.
Very ironic how this is one of the most free speach sites w/r to comments, yet all the gay-lovers (aka closet fags) come out soon as you bring up that term like you did.
You can't really pin this on either side of the aisle, America was given the choice in the 60's between seeing their standard of living decline and giving up ground to the soviets or going into a massive debt hole. Whether the last two generations made that decision with their eye open or not is inapposite now, we've gotta clean up the mess. I say this as a 25-year old. Wait until a power vacuum (it's coming), seize power, default on all debts, start over. Do it ruthlessly and don't let liberal values creep in, we don't have the wherewithal to carry parasites with us this time.
Can you say "Cognitive Dissonance"?
Both the reps and dems are liberal in practice; it was partyism I was disclaiming. But I see that my comment left an opening for your pedantry, so put a point up for yourself on the comments section scoreboard
Im almost 2X your age, and I would have smoke coming out my ears trying to find a word like 'pedantry'. Well done young man. And yes, in my opinion, the only part of the 'liberal' that non-decadent societies can carry is the 'liber' in 'libertarian'
Wow, 25 years old and yet so wise.
Barely 10 short years from the discovery of your first pubic hair and one or two years from the completion of your state propaganda indoctrination, it's inspiring to see that you've got it all figured out.
I must complain about one thing. If what's been going on over the past few decades, meaning cronyism, corruption, currency/bond/market manipulation, a psyops and propaganda jubilee, false flag attacks, war mongering and so on can be called "liberal" I need to buy a few bottles of "white out" and make some changes in my library dictionaries.
All the wars have a purpose they pave the way for globalism, corporatism. But you must admit the moral decay of this country has really destroyed this nation ... Every facet, the crap that rolls across the t.v screen teaches what ???Did you ever see a t.v. show on sound finance, maybe a running special on the long term effects of cocaine or heroin ? ??? Naw ...
This nation is following other greats down the sewer.
I bet a lot of bankers consider themselves liberal, as they live there life of debauchery, fraud, and partying lifestyles .... Calling on the right wing to do the dirt work with the tanks and guns in the name of globalism, and hillary will show up with gifts and flowers afterward, for the poor in their hour of need ...
The coming banking/fiat implosion is a simptom of a much larger problem ...
While I agree with you, in the interest of bringing awareness, I want to point out a few shows out there that do actually get it in:
Intelligence Squared Debates: http://intelligencesquaredus.org/
Freedom Watch: http://freedomwatchonfox.com/
Stossel: http://www.foxbusiness.com/on-air/stossel/index.html
CurrentTV(in general): http://current.com/
Concur with CD
Talk the talk and walk te walk. Pedantic bitches!!!
Speaking as a 25 year old? LOL. "WE don't have the wherewithal to carry the parasite with US this time?" Wow.
Karma can be a bitch, young man. Careful with her, lest she teach you the hard way.
You're assuming quite a bit there. You're right that a large majority my generation is a bunch of over-stimulated, over-drugged useless slugs. However those people are unimportant; they're never the people who cause revolutions and they're not the people I want on my side. Only the dedicated few matter.
I think we all "think" that at 25.. as I got older, my elders got smarter.
I'm not assuming anything of your generation here. Actually, I know them as a group whom I have great faith in. My remark here is only to suggest that you're a little young to have such great authority and to take such credit in what "we" have done/must do. It was not so long ago that you were literally a parasite yourself.
Not to mention you're souless dismissal of "parasites." See below for the obvious references to that.
Realize, good sir, that you could be a paraplegic tomorrow and rethink your vision.
If as you assume he meant the young and the sick as "parasites", I am all with you.
Parasites there are however, I've seem them. Like people who park a block away when
they go to collect their benefits because they dont want to be seen
in their $50k mercedeses. People who would sign on a $300k mortgage only because the gov will give them $8k. Who will lie on mortgage application.
As one poster above pointed, problems and much deeper and mostly result from moral decay.
I wish I had a degree from the Howard Roark School of Confidence.
I shouldn't pile on, but that shit was funny!
We can criticize Arthor for his choice of words but his anger, distrust and disgust for his "elders" is just the beginning and incredibly justified. Revolutions by definition require some amount of naive confidence.
America has been dragged into the abyss by the "liberals".... No more black & white we need P.C, we need the grey area !!!
The 60's was the breeding ground for this fucking mess we are in .... The family model was destroyed, and with this our nation has gone into the toilet ...
The "family model" uuuhhh , pray tell just what was the family model of the "pre-60's", if memory serves me right, alot of bad things happened in your ideal "family model"... it just wasn't discussed or addressed. Simple excuses for simple minds.
There are parasites alright, but they ain't liberal ones.
A coup, which is what I assume you're implying, and a subsequent default on debts (associated with the collapse of the previous government) is the only way I see hyperinflation happening.
Remember what happened when Germany changed governments and went through hyperinflation, you got the nazis. I guess that might be your idea of starting over the right way?
Hmmm, they did have that program for getting rid of the "parasites."
/sarc
Hitler was a crazy guy who happened to be at the right place at the right moment. Gaining power after the death of an old regime does not necessarily imply an attempt at world conquest and a massive slaughter of ethnic minorities
"Gaining power after the death of an old regime does not necessarily imply an attempt at world conquest and a massive slaughter of ethnic minorities"
But, history does point to it being far too common of an occurrence. Africa, Kryjkistan (or any other "stan"), Bosnia-Herzegovina, France during their revolution, the Soviet Revolution, Inca-Mayans.
Allowing a military takeover is a way of heading off the angry response of the people who are surely waking up to what has been done to them. You get the military to takeover and wipeout all the "dissidents". This is the elite game that's been done time and time again.
+100
The fall of a global superpower will not go over well with joe six pack, he needs dancing with the stars, he needs iphone, he needs golf, he needs rv, he needs the easy life.....he needs to uphold his stature ...
Finally, something we can agree on: golf. What an abomination! When J6P gave up bowling for its pretentious equivalent, I knew this nation was going to hell.
The 60's my ass. Golf is what did it.
Sulla, Ceaser, Napolean, Hitler, Stalin, Mao, Castro ... all of them took advantage of their times and all of them used the opportunity to their own ends.
I knew it, those bastards.
Y'know, someone who hasn't read a lot of your comments might not get that bada. Fortunately, I have:
hahahaha!
Lawn chair and popcorn will be ready at 12:55pm
It would have been nice if Timmah could have come out with the report on the same stage as Uncle Bennie, right after his "Mr. Scott, I need more money" speech
Aren't we doing a bang-up job on manipulating our own currency?
Pot calling the kettle black for sure.
Pot "offically" calls the kettle black. Kettle bitch slaps pot.
This is going to get interesting quick.
Addendum to your post:
'APPL!!1'
No, no, no.. Only the dirty Communists are manipulators. We are tying to "stimulate" our economy.
Yeah Bernie is trying to "stimulate" alright....
We are all communists......er keynesians now.
Pot, meet kettle.
Dick, meet Ass.
I don't suppose that flooding the market with dollars is considered manipulation. Gotta love the hypocrisy.
BB might reply: "You can't manipulate the world's reserve currency. It is the baseline. All others are fiat."
It's all just how define things I suppose.
he he he, not much longer I suspect :)
excuse me! you are talking about the world's reserve currency. it is backed by the full faith and , well you know. sound as a dollar and all that.
god in heaven makes dollars don't you know? he farts them out.
Just to add to the recent complexity of things beseting the US, provoking a further spat with China when the US is guilty of what it accuses.
The US is saying you should let us trash your export economy in favour of ours, as they have done to everyone else. China is saying FU.
Wonder what this will do to the AUD.
china's been doing this for fucking decades.
We wouldn't have to print if the normal market forces had been acting on our currency for the last 30 years
So you're saying the $14 Trillion debt is China's fault, along with $75 Trillion of unfunded liabilitites?
"So you're saying the $14 Trillion debt is China's fault"
Yes. They bought most of it, didn't they? They should learn tough love.
Damn Pinko Commie ChiCom Enablers. It's not my fault - I'm a victim too!
$14 Trillion and $850 Billion are two very different numbers. If China bought all $14 Trillion, then you have an argument. Otherwise you're reaching when you say they are the sole cause of the devaluation of the US dollar, as Trav proposed.
I think he's kidding. Blaming China is like the defendant blaming others for letting him do the crime. China just worked us to our addicted consumer and big corp labor flight limit. They are now carefully getting out of our debt game. In the meantime, we're not.
.
Original article:
Kina adds:
What China is actually saying is... if you want to look for signs of currency manipulation, look in the mirror, U.S.
The rest of the world would not disagree very strongly, either.
China rumored to be labeled a copy cat by the UST. Doesn't matter, the Fed is the new China.
Don't bite the hand that funds you.
I'll believe it when I hear it. That would be insane and we know this group is not, oh wait, sorry. Maybe it makes complet sense.
Pre-election hail mary perhaps?
What do they have to lose?
Another way to look at it is they are laying the ground to completely destory the global economy and lay on it a Rep congress come next cycle.
'bout time that shit went the other direction for a change.
Democrans or Republocrats -- two sides of the same worthless coin. Choose your poison: tax and spend or borrow and spend.
Blaming one party at this point is like arguing on the internet.
It's a diversionary tactic. "He did it, no he did it"... meanwhile, the midget behind you just pulled down his pants and opened the jar of Vaseline...grinnin'. You know what comes next...
that'll start Nov. 3rd. if the Republicans controll the House or Senate. The MSM will beat the C.A.P. propoganda drum from Nov. 3rd 2010 till Nov. 6th 2012. Otherwise, everything's under the rug as it's been the past 2 years.
How convenient. Just before the Federal Budget Balance at 2:00 PM.
Following this there will be a decision on whether to use hollow point or full metal jacket.
I vote Hollow Point.
Why not both? You may need to be able to shoot through a car door. ;)
http://gun-deals.com/ammo
I hate you for posting that link. I always lose about 20 minutes of my life looking at the deals when I go there.
Should be Full Metal Jacket..... In the good old days when you could soap the laggard of the group.
Can the CTFC be replaced by the FBI for goodness sake. Hate bent cops.
China should label the United States "toast". That would be amusing.
Jesus Ben.
Nobody wants to buy our stuff no matter how far the dollar falls
and we also do niot make anything anymore.
Did you think allowing corporations to send all jobs overseas was without consequence?
We do however have a comparative advantage producing tainted securities so are you upset nobody is going to purchase anymore of our securitized trash for the rest of time?
+1
+$2.65T
If Benny can't even see evidence of structural unemployment in this country, what makes you believe that he will EVER get the message on global trade?
These guys are so out of touch with the rest of the world... that its scaring the rest of the world.
excellent
Also at 1, no one to be named stock or interest rate manipulators.
We will now conduct an impromptu POMO to the strains of 'I'm a little Teacup'.
I'm assuming it won't happen. Things are not that bad yet. Maybe in a year.
I'm thinking instead, this close to the elections you can get a lot of play from a rumor, if it's the right kind.
Agreed. More political posturing & grandstanding opportunities.
See? 20 min later and it's all over.
They'll pull another stunt just like this twice a week until after elections.
We're no better than Brazil. Well except we've got nucular weapons.
Yep, perhaps a statement that cannot positively prove manipulation, but suggest some interference in the markets. Blah, blah, blah..
Absolutely. I believe everything my Uncle Sam tells me.
If he tells me China is a currency manipulator, I'm breaking all my good dishes.
Probably what will end up happening is Bernanke will come out and say that China may be a currency manipulator, but the US is manipulating the dollar even more.
This will most likely be better than idiotic analyst expected, so we'll finish up the day +1,000.
aaaand when is the next Treasury auction???
Don't worry, we now have a new buyer of treasuries.
Talk about living in a glass house and throwing stones at the neighbors!
I would not be surprised, since it is consistent with what's been happening since Larry Summers' return from China: - Obama openly complains about the Chinese currency's undervaluation; - Departure of Larry Summers since he did not win any concessions from China, yet he would not want to have trade war with China because he was the one who negotiated with the WTO deal with then Chinese Premier Zhu Rongji; - Geithner openly asks China to quickly appreciate Yuan -- unlike Summers, he still wants his job; - House passed resolution to administration the weapon to fight trade war, and Senate will rubber stamp it soon. All signs point to that Obama has made his mind to take on China on the currency issue.Supporting your argument is the departure of General Jones as National Security Advisor. His replacement is Tom Donilon who is a known hawk on China.
'and.....
"WASHINGTON (AP) -- The Obama administration has decided to launch an investigation into various Chinese practices that a major U.S. union says are robbing American workers of jobs in the burgeoning field of clean energy such as solar and wind power."
http://finance.yahoo.com/news/Administration-launches-China-apf-2148614851.html?x=0
Regards.
China- 'I'm rubber you're glue, whatever you say bounces off me and sticks to you' <sticks out tongue>
Just silly. I'm sure Timmay is perfectly happy that China does manipulate so he can blame all the US economic woes on China.
They are going to use dreaded Investigations?
Nobody expects the currency inquisition!
Amongst our weaponry are such diverse elements as fear, surprise, ruthless efficiency, an almost fanatical devotion to The Fed, Erin Burnett, and a nation almost entirely populated by complete nincompoops that have never even left the US and believe the Chinese to be uneducated and starving rice farmers.
Bring on the "Comfy Chairs!" Those Chinese have been asking for it!
Give us back Bretton Woods! From 1944-1971 the world had a much more sane system of exchanges - the gold reserve standard of Bretton Woods. A trade surplus nation could redeem its paper currency surplus for gold in the nation that had a deficit relative to it. If a country, like the U.S., ran trade deficits year after year it would run out of gold and be forced by the IMF to devalue its currency if it wanted to stay in the system. Unlike the earlier gold standard, it allowed nations great flexibility in their internal financial regimes but it kept things honest internationally by preventing one from running permanent current accounts deficits based on willingness of foreigners to hold their money as a reserve; the one basic flaw in the original 1944 system was allowing the dollar to be the only currency directly convertible to gold
Yeah, right, the inkjects will give up the ink.
Wake me up when that happens, would make
for a good show...
Silly Timmy, don't release the report while the market is open....this kind of news deserves the Friday After Market Close status.
Talk about shooting oneself in the foot. This will end badly.
We're down to stumps now.
Time to burn down the Fed and the White House, vote out and fire every last politician and bureaucrat in the Beltway, and retreat into Fortress America.
AND we keep our Tridents cruising with warheads at the ready.
This nation needs a VERY long rehab.
"Time to burn down the Fed and the White House"
Any chance the Chinese could be recruited to help?
China must be slacking on the bribes. Pay up to the usa banksters bitchez!
ZERO-BOUND
$USD along with all other fiats are all destined to return to their intrinsic value. As such, all of them are ZERO-BOUND..
Update: Now it is getting really interesting - Reuters reports that according to a Senate aide, the currency report will be delayed. If all was to be smooth sailing, one wonders why...
Edit, Find and Replace, "manipulation" with "unusual activity"
And "irregularities." Can't forget them!
So if this happens at 1, what happens to the dollar and bonds? Any opinions?
The U.S. must levy tariffs on Chinese goods, or it's all pointless. It's like calling each other names and accomplishing nothing. Perhaps the U.S. is hoping the WTO will step in and force China to revalue.
Nobody gives a shit what the value of the yuan is.
Bennie is out of ammo to create inflation and has
asked the congress for help. Tariffs are very effective
at creating inflation.
Isn't this racial profiling against the Chinese?
Or does profiling only exist in Arizona?
I know, stop selling so much debt!!! Problem solved, china can no longer print Yuan to buy Dollars if we are not selling them!!!
That's not the problem. The exchange rate is based on "pretend gold". US pretends it has some for a hgh dollar value. China pretends it doesn't have any for a low yuan exchange.
The central banks are supposed to be independant enough to make sure everyone cheats fairly.
China currency pegs. Everytime the dollar weakens it pegs it currency to it. Which means it hijacks and leaches off the US LIE. So it's technically not manipulating it's own currency it's manipulating the US manipulation of it's own currency.
Just like a guy buying an expensive car, expensive house and then telling people what to do as they think they have a bunch of resources to "get to". It's all illusion and smoke and mirrors. Fake it till you make.
See microsoft bragging about windows 7 sales, bragging about halo reach sales while borrowing 10 billion from bond market over the last 3 years. The problem here is a little punk company like redhat that still does way less than a billion a year is in reality punching just under microsofts weight.
1. Buy gold.
2. Wait for confessions.
3. Profit.
Lets see, they already stock up and we piss and moan about a trade war already over, brilliant..... When America finally figures out what has been done they can only begin to rebuild there civilisation to structual modesty they abandoned to assert there current wisdom.
http://www.cato.org/pub_display.php?pub_id=6591
http://www.globalsecurity.org/military/library/congress/1996_hr/s960605y.htm
Lacking in regard to reality.
"There's no question that China has become the scapegoat," said Oded Shenkar, an Ohio State University management professor who specializes in China. That's especially so in states such as Ohio where unemployment is high and industrial employment has fallen sharply. Shenkar said one recent campaign mailing he received showed a picture of a green-faced man with these words: "You're 53, you've given them 26 years of hard work, and now you find out they're sending your job to China." Shenkar said there was a good chance the Obama administration would cite the Chinese for currency manipulation. "They're desperate, as far as the polls are showing, and the economy is pretty bad," he said. But Clyde Prestowitz, a Commerce Department official in the Reagan administration, doesn't see much likelihood of that happening. The reason: "They have a lot of fish they want to fry with China, and not just economic fish." Obama wants cooperation from Beijing in dealing with North Korea, Iran and other contentious geopolitical issues.
http://www.chicagotribune.com/business/la-fi-china-trade-20101015,0,109125.story
http://english.aljazeera.net/focus/chinabuystheworld/2009/08/2009810102327986946.html
He believes that China is preoccupied with its immediate neighbors like Japan, the Koreas and Taiwan, and domestic issues like growing poverty, mass internal migration and rising crime.
Report delayed. Will now be released Christmas Eve at 5PM ET.
there is no way this happens. if it does happen it will probably mean the market rockets another 1000 points, so in the end it doesn't matter.
bernanke will just keep buying bonds and stocks, who cares if no one else in the world wants or needs to buy them anymore. he is monetizing debt. dollar will get cheaper across the board vs every other currency.
if there is a pull back in gold, it should be bought. Ben has already said he is willing and able to drop another 2 trillion with the full strength of this president behind him.
Obama doesn't care if he blows up the country, hell he inherited the whole mess right? So he has a right to blow it all up.
told you it wouldn't happen today.
there is no way. the us will never declare an open trade war with china. first of all we would get stompped, secondly it would destroy what little is left of our economy. how smart would it be to block yourself out of the largest market in the world? not smart at all. exactly
So China funds our trade and government deficit, but They're a manipulator....
You know things are changing for the worse when the help at our local Dunkin Donuts shop pour through the change tray on an hourly basis looking for pre 64 coins. They do find a few!
I would wait until after they dump all those US Treasuries to call them currency manipulators.
This all will make for an interesting PM in PM's. But it will be good news for the home team either way:
1. to the horror of the beseiged Blythe Masters, Gold gets up off the mat, gives her another good smash in her reptilian gobber, and says "have a nice weekend luv"
Or
2. we get a really nice dip here and further stock up at a discount once again courtesy of the shorts
I'm cool w/ either outcome but am hoping for the former, just b/c I like to see Gold kick that witches bony ass just as often as possible before Jamie D knifes her and she's driven back to whence she came. Imagine how much money this person has stolen from us over the years?
CD, or anyone - can you please explain why a potential announcement like this (accusing China of currency manipulation) would put pressure on the precious metals? Are the sheeple to believe that if China merely "played fair" with the Yuan, everything would be fine in the ole US of A? ...I don't get it.
Love your videos Sarge, fantastic work. Thank you.
oh wow, to get a compliment on zero hedge, one of my top 3 favorite sites on the planet frequented by some of the smartest folks around, dang. Thank you!
Note from RHM Global :
>>> It reads that if Chinese are named now, US is named as well? A no-win situation.
Pot meet kettle.
TD,
Your source said "named", you escalated to "branded". Oh, how foul you are! Clearly Asiaphobic. You probably have 'yellow-peril' and Fu Manchu stereotypes roiling around that perfervid and chaotic intellect of yours.
Let's split the difference and settle on something like tar-and-feathered.
Oh, you've learned epithets...
Why don't you go fuck yourself ?
I don't get it. Their currency is PEGGED to the US dollar. It would seem that this is either manipulation or not, and it would have started when they started the peg. Seems a bit late to call it that now....
GOLD updated chart showing parabolic move.
http://stockmarket618.wordpress.com
Really this is a great post from an expert and thank you very much for sharing this valuable information with us.
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