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China Interbank Market Freezes As Overnight Repo Explodes To 25%
It seems liquidity (or counterparty mistrust) is beginning to reach extreme levels in China as the nation's banking system is now quoting overnight repo transactions at 25%. The explosion in funding costs echoes the collapse in trust (and surge in TED spread) among US banks in the run-up to the Lehman bankruptcy. MSCI Asia-Pac stocks are down over 3% with China's Shanghai Composite -2.5% at seven-month lows.
- China’s 1-day Repo Rate Climbs to Highest Since at Least 2006
- MNI - CHINA OVERNIGHT REPO FIXING AT RECORD HIGH
China's bond market is also collapsing:
Yield on 3.1% govt bonds due January 2016 jumps 39 bps to 3.749%, biggest rise since notes were issued in January
China this week...
US in the run-up to Lehman...
Charts: Bloomberg
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Also, bitcoin holds at $108.
is it a liquidity or solvency problem ?
" I said that it's not going to have any lasting effect"
Not true. It will have a very lasting affect on me. I always new my gmail was part of some sort of surveillance effort but now I know for sure. That changes everything.
Hey, how's that with Google Drive. 15Gb of free storage. "Just let us run our hands all over your data in return"
CREATING TRILLIONS OF DOLLARS AND TRILLIONS OF DOLLARS AND TRILLIONS OF DOLLARS AND TRILLIONS OF DOLLARS SINCE THE GFC OF 2008 AND WE ARE NOW HAVING GFC 2.0
Black Swan Helicopters with the initials BB printed on the side seen revving up their engines.
I still have my money on Ben printing his way over the cliff.
Pay off your debts, keep a little cash and put the rest in gold/silver.
If you cannot pay off your debts, hold a little cash and buy gold, then I suggest you max out your credit card and buy gold/silver and keep a little in cash.
Ben is clueless and superstitious.
Gold is sad-sack Ben's "whipping boy". He reflexively canes gold hoping its "pain" will maintain his lie.
It hasn't, it won't, and it merely accelerates the recognition of the BIG LIE that Ben and his ilk have lived off of for decades.
PMs on sale now. Get it while it's hot if you're awake
Europe is going to seize up if yields keep moving higher like these. Starting to look like the JGB market.
Spain 10-Year 4.791 4.528 4.791 4.672 [0.262 5.81%] 8:49:40
Italy 10-Year 4.472 4.258 4.475 4.370 [ 0.215 5.03%] 8:49:48
Ben Quixote tilting with the windmill "gold" while economic ruin goes about its business unhindered.
Yen, how high do you believe usd/jpy goes? I know you said to go long a few days ago, congrats. I thought it would top out at 98 maybe a week from now then reverse to retest 94. Jesus Christ that trade is violent.
Overcapacity. Bursting credit and asset bubbles. Chronic deflation.
Looks like it´ll be Japan 2.0 for China.
Five U.K. banks must find another 13.4 billion pounds ($21 billion) to plug a 27.1 billion-pound capital shortfall by the end of the year, the Bank of England said....
... The central bank, whose Prudential Regulation Authority unit took over as the U.K.’s banking supervisor from the Financial Services Authority this year, outlined potential losses for banks of 52 billion pounds in March. Lenders must “hold capital resources equivalent to at least 7 per cent of their risk weighted assets,” with those losses taken into account, the BOE said....
http://www.bloomberg.com/news/2013-06-20/five-banks-must-raise-21-2-bill...
Supply chains will probably be crashing in the next few weeks. If you want something more sophisticated than eggs from the chickens or local vegetables, now might be a good time to order.
I expect the internet to "go down", but not quite yet, maybe in early July.
As I watch silver cross into the teens and gold go below 1300, I can say in all honesty and with utmost sincerity, if I could move all my money right now anywhere, and into anything, it would stay right where it is. At the bottom of the lake.
Silver For The People
gold should be somewhere between $1000 and $1200. It will take time till it gets there
On what do you base "should be" ?
LOL.... +1 from me
Remember this...when it all collapses it will be instantaneous...only the survivors will realize what's happening. Normalcy bias is very hard for most of us to survive when the inevitable tail-event comes along.
So what if the Chinese suddenly open up the Yuan? What if they suddenly announce they are making the Yuan fully convertible, it is backed by their (previously un-updated), now 4-5,000 tonnes of gold, and all this global capital finds a new home and helps them re-capitalize their banks?
They could take their writedowns NOW, ahead of everyone else, make their currency fully convertible, accept whatever market rate that takes it to and announce a brand new robust bond market of all durations denominated in Yuan......The bankers in Hong Kong and Shanghai will be jumping for joy and China has the new world's reserve currency without the USA even getting off a shot......
Of course it would crush their exporters and piss-off alot of regional heavy-hitters in the shadow market (who see their investments take a major haircut), and require some banks to be shut or a holiday for a while......But it might work.
Please all you Wall Street guys (who would be dunked on by this), tell me why this can't work?
From a Westerner who lives in Shanghai......
it would hurt their exports hard. That is why i do not expect any country going onto gold standard at all
The Rothschild backed Central Bankers will never allow a country to create a sound currency; including China. Every leader who has attempted this was put to death, and every country that created a sound currency has been detroyed.
I live over here and work with Chinese folks every day. I don't see many of them that look like Jewish Rothschild's or could give a damn about them. Remember these guys were around a long time before Western bankers came up with their fiat scheme to rule the earth......
You don't understand. The Communists under Stalin (Chairman Mao was a puppet under Stalin) were funded by the Bank of London (Rothschild) and by Wall Street. Soviet Russia and Red China have been under the Rothschild umbrella for decades. The whole world is on a fiat system, and the Yuan is worthless; being "pegged" to the worthless FRN. The Chinese would never back their Yuan with their gold. That would be throwing good money after bad. I don't think at this point China wants "world reserve currency" status. The Chinese leaders want to keep their country from collapsing and from people starving.
My, my....
Ben what have you wrought?
Junkie throwing a fit.
Need more cowbell
The engine has seized, and pouring more oil in won't help. Yikes. First the financing will lock up, then supply chains will be disrupted, then the ugliness really emerges. Looks like we have three months.
Gonna be a lot of margin calls today.
Throw the barbaric relic back in the graves
Let the dead men sleep.
Gold -83 bucks and I'm a goin fishin.
Why is gold collapsing at this moment if China is collapsing?
http://goldprice.org/spot-gold.html
It´s anticipating rising U.S. interest rates and thus a rising dollar.
This is negative for commodities and stocks and of course bonds.
@Hudson
because of supply and demand.... is there such a thing? peut-etre???
i dont think rise on US interest rates is ever going to happen ... forget about king "le douleur" ... that one is dead long ago ...
Well, the 10-year note is at a two year low and falling (and yield conversely at a two year high and rising).
It´s in progress. Rates are going up. Therefore the Bernank is scrambling now. He´ll be forced to start hiking rates probably in Q1 2014. The death of the dollar and hyperinflation and all that stuff will remain elusive as before.
WHAT HAPPENED SEPTEMBER 7-11TH IN 2008? GO LOOK UP THE GOLD HISTORIC CHART AND STOP LOOKING AT PAPER PRICES.
PM's always take paper price hits in the beginning of a CriSIs... It's price on paper folks, use the dip to purchace.
Its a tactic to drive up equity markets. All head fake.. Physical sales price hasn't changed.
Love that QR code -- my sentiments exactly!
Why am i reminded of Napelons defeat at Waterloo? But, there's no Rothschild in this equation.
Better buy metals while they are artificially cheapened. 1300 gold is a very sweet deal, but you'll have to pay almost $1400 for real metal. Just don't buy any "paper gold" because that's a scam. Pile now, smile later.
Wow, I think they'll be having major problems sometime this year at the latest even if not right now!
Video inteview - China's 'Actually Gotten Worse': Jim Chanos - 12 May 2013
http://www.planbeconomics.com/2013/05/chinas-actually-gotten-worse-jim-c...