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Chart Of The Day: How In Five Short Years, China Humiliated The World's Central Banks

Tyler Durden's picture





 

The concept of the "liquidity trap" is well-known to most: it is that freak outlier in an otherwise spotless Keynesian plane, when due to the need for negative interest rates to boost the economy (usually resulting from that other inevitable Keynesian state: the bursting of an asset bubble) - a structural impossibility according to most economists although an increasingly more probable in Europe - central banks have no choice but to offset a deleveraging private banking sector and directly inject liquidity into the banking sector with the outcome being soaring asset prices, and even more bubbles which will eventually burst only to be replaced with even more failed attempts at reflation. Sadly, very little of this liquidity makes its way to the broad economy as the ongoing recession in the developed world has shown for the 5th year in a row, which in turn makes the liqudity trap even worse, and so on in a closed loop.

Since there is little else in the central bankers' arsenal that is as effective in boosting the "wealth effect" - which is how they validate their actions to themselves and other economists and politicians - they continue to do ever more QE. And since banks are assured at generating far greater returns on allocated capital in the markets, where they can use the excess deposits they obtain courtesy of the Fed's generous reserve-a-palooza as initial margin for risk-on trades, the liquidity pipelines remain stuck throughout the world, and loan creation - that traditional money creation pathway - is permanently blocked (as is the case empirically in both the US and Europe, where private-sector loan creation is declining at a record pace).

Everywhere except the one place that has yet to actually engage in conventional quantitative easing: China. At least explicitly, because loan creation by China's state-controlled entities and otherwise government backstopped banks, is anything but conventional money creation. One can, therefore, claim that China's loan creation is a form of Quasi-QE whereby banks, constrained from investing in a relatively shallow stock market, and unable to freely transfer the CNY-denominated liquidity abroad, are forced to lend it out knowing that if things turn soure at the end of the day, the PBOC will bail them out. Paradoxically, this "non-QE" is exactly how QE should work in the US and other developed markets.

That's the long story.

The short story is far simpler.

In order to offset the lack of loan creation by commercial banks, the "Big 4" central banks - Fed, ECB, BOJ and BOE - have had no choice but the open the liquidity spigots to the max. This has resulted in a total developed world "Big 4" central bank balance of just under $10 trillion, of which the bulk of asset additions has taken place since the Lehman collapse.

How does this compare to what China has done? As can be seen on the chart below, in just the past 5 years alone, Chinese bank assets (and by implication liabilities) have grown by an astounding $15 trillion, bringing the total to over $24 trillion, as we showed yesterday. In other words, China has expanded its financial balance sheet by 50% more than the assets of all global central banks combined!

And that is how - in a global centrally-planned regime which is where everyone now is, DM or EM - your flood your economy with liquidity. Perhaps the Fed, ECB or BOJ should hire some PBOC consultants to show them how it's really done.

 


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Tue, 11/26/2013 - 16:36 | Link to Comment Clayton Bigsby
Clayton Bigsby's picture

Beast mode....

Tue, 11/26/2013 - 16:38 | Link to Comment Obchelli
Obchelli's picture

Scroll down and see how economy is doing after 50 years of technological revolution

http://beautifulpic4all.weebly.com/31/post/2013/11/economy-class-seating...

Tue, 11/26/2013 - 16:57 | Link to Comment The Juggernaut
The Juggernaut's picture

So does China win the currency wars?

Tue, 11/26/2013 - 17:04 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

"Political power grows out of the drum of a Heidleberg press."

-Mao

Tue, 11/26/2013 - 17:08 | Link to Comment remain calm
remain calm's picture

Who is the dumb ass that thinks the Yuan will replace the dollar? Fuck You. My dick may only be 2 inches but it is bigger than yours China man. BTW your wife loves my big cocky

Tue, 11/26/2013 - 17:11 | Link to Comment BoNeSxxx
BoNeSxxx's picture

Any bets on whether or not the physical gold reserves held by each central bank would look the same?

Tue, 11/26/2013 - 17:16 | Link to Comment Mark Carney
Mark Carney's picture

I believe this is a lot bigger then anyone really thinks....

 

 

the straw that broke the camels back?

 

China has gone ALL IN!

Tue, 11/26/2013 - 17:29 | Link to Comment Ham-bone
Ham-bone's picture

BTW - this is pretty much a replay of what Wiemar Germany tried to restart the global economy in the early stages of the depression...major exporter attempting to weaken currency and flood system w/ inflation...I can't seem to recall how that worked out, but I'm sure this will work out exactly as planned?!?

Tue, 11/26/2013 - 17:30 | Link to Comment economics9698
economics9698's picture

lol, the way it always does, war.

Tue, 11/26/2013 - 19:38 | Link to Comment FEDbuster
FEDbuster's picture

Zimbabwe had 'em all beat, I have a couple of $100 Trillion bank notes to prove it.

Central Banks should never go "full retard".

BTW, isn't China the biggest Bitcoin player now?  Bubble, bubble, toil and trouble....

Tue, 11/26/2013 - 17:34 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

It isn't. If it isn't apparent to everyone yet the Chinese are buying everything up with printing press operation all while holding the US' balls in vice like grip by holding a large enough amount of debt that it can't stop them without major self inflicted damage. Once the Chinese buy enough assets up they are going to put a match to the whole paper game and burn everyone to the ground. They can get away with it because they have the gold to reissue a new currency after the fire goes out. Posession is the law at that point. Golden rule applies, he who has the gold makes the rules. He who doesn't unless they can enforce their will through force has to acquiese like it or not. Obama's systematic weakening of military is partially to foward this very goal and allow the bankstas there a way out without have to deal with the retribution when the US populace realizes they wuz robbed and are angry and looking for heads to kick in.

Tue, 11/26/2013 - 17:36 | Link to Comment economics9698
economics9698's picture

I agree.  China is just buying gold and waiting...not to far off now.

Tue, 11/26/2013 - 17:50 | Link to Comment Ham-bone
Ham-bone's picture

Come now - China's militarily abilities outside of China and it's immediate neighborhood is a joke - 1 retrofitted old Russian aircraft carrier...no real navy to speak of...no way to project itself beyond it's neighborhood...China is a puppet, not the one pulling the strings.

Not sure when people will realize these nationalistic divides, red team / blue team silly games, black vs. white, jew vs. arab...they all play on old hatreds and stereotypes to distract from those who are stealing everything...and it sure as hell ain't the Chinese - China is simply the current bubble and next great crash

Tue, 11/26/2013 - 18:12 | Link to Comment Waffen
Waffen's picture

It seems pretty obviousl, China is destroying everyone else in this currency war except for of course the bankers.

Whomever has the most assets when the music ends wins right? the only question now, is when will it end? What's to stop the status quo from continuing? it's gone on for 5 years, what's another 5? When everyone collides to transfer wealth from west to east in global cooperation what's to stop it from from continuing? there is no mechanism top stop it as long as there are things china wishes to buy. The west has no advocates in position to even want to stop it as the chosen jar no loyalty to th west but only loyalty to themselves.

Tue, 11/26/2013 - 18:15 | Link to Comment economics9698
economics9698's picture

The music stops when inflation can no longer be ignored.

Tue, 11/26/2013 - 19:27 | Link to Comment max2205
max2205's picture

Did I miss something like loan creation went up as a result.....think not

Tue, 11/26/2013 - 19:30 | Link to Comment BandGap
BandGap's picture

Could be, you have a realistic concept.

How about this - the US is allowing this to happen until they align as many allies as possible against China. Currency wars end up as shooting wars and who is getting harmed letting China buy gold and trinkets while the US buys F-20s and F-35s? 

One thing I've learned is the moinute soemthing seems obvious, it isn't.

Tue, 11/26/2013 - 20:27 | Link to Comment gmrpeabody
gmrpeabody's picture

"One thing I've learned is the moinute soemthing seems obvious, it isn't."

You obviously fat-fingered a couple of words there,...oh, wait.

Wed, 01/22/2014 - 01:46 | Link to Comment RafterManFMJ
RafterManFMJ's picture

Once the Chinese buy enough assets up they are going to put a match to the whole paper game and burn everyone to the ground. They can get away with it because they have the gold to reissue a new currency...

Genius! And let me add the Chinese are doing all they can to get more manufacturing capacity, IP by trade or theft, stockpiling strategic metals like copper...

When the fire goes out and the new Chinese gold backed currency arises like a Phoenix, China will hang signs outside of all those formerly Western owned factories saying "So solly! Under New Management"

But please not to worry, the US can still fuel it's carriers with US Treasuries... we did save some that are steam powered, right?

Tue, 11/26/2013 - 20:10 | Link to Comment Hmmmmm
Hmmmmm's picture

Every Communist must grasp the truth; "Political power grows out of the barrel of a gun."

"Problems of War and Strategy" (November 6, 1938), Selected Works, Vol. II, p. 224.

Page 121 in the little red book.

Tue, 11/26/2013 - 17:35 | Link to Comment Ham-bone
Ham-bone's picture

So does China win the currency wars?

they don't...you and I and the Chinese people all lose in another mega bubble and all real assets are stripped in the process of "saving the system" from collapse...serial global bubbles and serial global bail-outs / ins by the money printers.  Not sure that I remember voting for that????

Tue, 11/26/2013 - 17:43 | Link to Comment SilverDoctors
SilverDoctors's picture

@The Juggernaut:  China wins the currency wars by quietly accumulating 20,000 metric tons of gold reserves.

http://www.silverdoctors.com/guest-post-china-has-quietly-accumulated-20...

Game. Set. Match.

Tue, 11/26/2013 - 19:31 | Link to Comment BandGap
BandGap's picture

They won't get to keep it if they lose the shooting war.

Tue, 11/26/2013 - 20:03 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

So true.  And what a consolation prize to both the "winner" and the "loser" if a shooting war begins.

Fine line that determines sanity.

I think you could interchange "greed"with that quite easily -especially when you are talking about the one that is creating all the systemic problems with the reserve currency control(s) that initiates with great frequency both idle and active threats when it doesn't get it's way.

Wed, 01/22/2014 - 01:53 | Link to Comment RafterManFMJ
RafterManFMJ's picture

They won't get to keep it if they lose the shooting war.

Yup great idea. Your Nation pissed away its advantages and allowed itself to be co opted by the dross of humanity, so what're you gonna do?

Start a shooting war with a nation that has real weapons systems, and H Bomb tipped ICBMs - when you cannot defeat men in sandals with AK47s?

Pure insanity, stupidity and criminal genocidal incompetence. So, look for President Hilary to launch the war in 2017.

Tue, 11/26/2013 - 19:20 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

As long as the intent is backing it with Gold -it would appear so.

Tue, 11/26/2013 - 19:48 | Link to Comment Sam Clemons
Sam Clemons's picture

Isn't China buying real assets?  The US Fed is buying MBS and US Treasuries.  LOL.

Wed, 01/22/2014 - 01:55 | Link to Comment RafterManFMJ
RafterManFMJ's picture

I'm COL over here...

*Crying Out Loud

Tue, 11/26/2013 - 16:57 | Link to Comment Skateboarder
Skateboarder's picture

That's when the common man still had class.

Tue, 11/26/2013 - 17:09 | Link to Comment ZerOhead
ZerOhead's picture

... rather than deep vein thrombosis...

Tue, 11/26/2013 - 17:21 | Link to Comment Skateboarder
Skateboarder's picture

From a diabetic prognosis.

Tue, 11/26/2013 - 17:07 | Link to Comment whatsinaname
whatsinaname's picture

explains why Pan AM went bust ?

Tue, 11/26/2013 - 17:11 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Re:   50 years of technological revolution

Without "Keynesian" debt prosperity we'd not have had jumbo jets or the really cool airports to land them.    Big-MIC and Big-Airport, those evil commy socialist central-planning scams funding with evil debt, allowed the common person to afford jumbo jet technology.  

Last time I checked, United and AA didn't have any budget for airliner research-n-development. 

Tue, 11/26/2013 - 17:26 | Link to Comment economics9698
economics9698's picture

lol, what a stupid statement.  

Tue, 11/26/2013 - 19:17 | Link to Comment shovelhead
shovelhead's picture

Theres a lot more where that came from too.

Tue, 11/26/2013 - 19:40 | Link to Comment BandGap
BandGap's picture

The word stupid doesn't quite capture the essence of the idiodicy contained in his statements.  I always hope that people are being sarcastic when they write shit like that.

Tue, 11/26/2013 - 16:40 | Link to Comment TruthInSunshine
TruthInSunshine's picture

This can't be the case. Too many people "know" that China is set to dominate the world economically, militarily & intellectually.

China is on the cusp of winning the whole enchilada, it is commonly & popularly stated among the crowd.

Never "go against" the collective wisdom of the crowd/herd.

/s

Tue, 11/26/2013 - 17:24 | Link to Comment The man with po...
The man with pointy horns's picture

And maybe, just maybe, the obvious is simply the obvious.

Tue, 11/26/2013 - 18:08 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

This is just a series of stupid statements.

Total Assets means that the CB's can offload assets to member banks and effectively hide them.

In China all businesses are owned by the party, including banks which means that China cannot hide assets.

Has anyone asked, "Hummmm, I wonder why Team Tyler is not comparing the same data-points, "Total Assets of ALL Central Banks"?

A fair comparison could be presented, but that would not sell clicks to the ZHeeple, The Anti-Asianites.

Over.

Tue, 11/26/2013 - 19:13 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

"In China all businesses are owned by the party, including banks which means that China cannot hide assets."...

Precisely.

This is why there system will continue to trump ours in both the short and long run. Would be a completely different situation if Mr. Ruben and Mr. Summers had left Glass-Steagall untouched now -wouldn't it?

Coulda, Woulda, Shoulda...

Tue, 11/26/2013 - 18:38 | Link to Comment YC2
YC2's picture

All these sheeple telling me the sun will come up tomorrow, too.  I'll be in my bunker full of light bulbs if you need me.

Wed, 01/22/2014 - 01:59 | Link to Comment RafterManFMJ
RafterManFMJ's picture

Wish I could afford a bunker. All I've got is a package of birthday candles, a case of SPAM, and some duct tape to seal the closet door's gaps shut.

Tue, 11/26/2013 - 17:05 | Link to Comment whatsinaname
whatsinaname's picture

So are Chinese banks buying physical gold with money printed by the central bank ?

Tue, 11/26/2013 - 17:20 | Link to Comment ZerOhead
ZerOhead's picture

Nah... they are lending it out to themselves first and then buying gold.

When the time comes the same thing will happen over here with the assistance of the Federal Reserve. The new program is to be called the Commodity and Asset Reflation Program or CARP.

Personally I think it sounds a bit fishy...

Tue, 11/26/2013 - 19:57 | Link to Comment BandGap
BandGap's picture

Thank you, sir. I need more humor in my day to day dealings.

Tue, 11/26/2013 - 17:19 | Link to Comment Harbanger
Harbanger's picture

More likely it's money from the west that's been buying them the gold.  Those Chinese trinckets ended up costing a fortune.

Tue, 11/26/2013 - 19:40 | Link to Comment forwardho
forwardho's picture

Agreed, what better to spend those now worthless bonds on. Exchange something of no lasting value for something of everlasting value.

Seems like a no brainer.

Tue, 11/26/2013 - 16:38 | Link to Comment Max Damage
Max Damage's picture

Assets or shite sold to them by thieving and corrupt banksters? With of course the full backing of the CB's

Tue, 11/26/2013 - 16:40 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

A house built on financial "liquefaction" shall not stand.

Tue, 11/26/2013 - 17:04 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

We need bentonite underpinning. PM's

Tue, 11/26/2013 - 16:46 | Link to Comment asscannon101
asscannon101's picture

And Krugman is furiously masturbating as he reads this...

Tue, 11/26/2013 - 16:47 | Link to Comment Herdee
Herdee's picture

I hope that the Chinese buy up every ounce of gold in storage and every gold mining share in existence.

Tue, 11/26/2013 - 16:47 | Link to Comment krispkritter
krispkritter's picture

The Big 'Red' Balloon.  Just another bubble in search of a prick...who's their 'Yerren'?

Tue, 11/26/2013 - 16:52 | Link to Comment lailapa
lailapa's picture

World War III - The first private war in history

Those who won all battles shall lose the war

http://eamb-ydrohoos.blogspot.gr/2012/02/world-war-iii.html

..

New Order traitors

Tue, 11/26/2013 - 19:31 | Link to Comment bunzbunzbunz
bunzbunzbunz's picture

Insert shameless plug here: Free Bitcoins: http://freebitco.in/?r=25727

Tue, 11/26/2013 - 16:54 | Link to Comment Rehab Willie
Rehab Willie's picture

Krugman has changed his name to "Hung Lo"

Tue, 11/26/2013 - 17:10 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

Which the medical dictionary defines as testicular hernia

Tue, 11/26/2013 - 17:34 | Link to Comment Harbanger
Harbanger's picture

Yellen is Hung Mo Lo.

Tue, 11/26/2013 - 18:33 | Link to Comment remain calm
remain calm's picture

Krugmans name   Hu e wekton

Tue, 11/26/2013 - 16:57 | Link to Comment Steroid
Steroid's picture

How is it possible that these numbers do not biass the Chinese GDP?

Tue, 11/26/2013 - 17:06 | Link to Comment ZerOhead
ZerOhead's picture

Actually they ARE the Chinese GDP...

Tue, 11/26/2013 - 17:00 | Link to Comment SheepDog-One
SheepDog-One's picture

Race to the bottom....the craziest lunatic wins! Who cares how many billions have to die, the overlords must maintain their control no matter if Homo Sapiens goes extinct in the process.

Tue, 11/26/2013 - 17:15 | Link to Comment Rainman
Rainman's picture

I saw a 50% off coupon for Mandarin second-language lessons...seriously

Wed, 01/22/2014 - 02:02 | Link to Comment RafterManFMJ
RafterManFMJ's picture

They make some great oranges, so they can't be all bad.

Tue, 11/26/2013 - 17:28 | Link to Comment rlouis
rlouis's picture

Why the 'Humiliation' tag?  In order to build up China's industrial and military capabilities the elite bankers have to do this.  SOP

Tue, 11/26/2013 - 17:36 | Link to Comment xamax
xamax's picture

Based on these new allegstions, we raise our EOY s&p 500 target to 2200

Tue, 11/26/2013 - 17:39 | Link to Comment xamax
xamax's picture

We also changed our EOY 2014 s&p 500 target to 3000

Tue, 11/26/2013 - 17:42 | Link to Comment TheMuppet
TheMuppet's picture

All you China-haters are really gonna hate this one:

http://ablog.typepad.com/keytrendsinglobalisation/2013/09/china-has-over...

Who's got the bigger stack now, White Man?

Foam-at-mouth away!

Tue, 11/26/2013 - 17:49 | Link to Comment Rainman
Rainman's picture

The only real white men left are over 40 . All others have been gender re-classified.

Tue, 11/26/2013 - 19:45 | Link to Comment CCanuck
CCanuck's picture

Testiclectomies and spinalectomies are all rage in the Metro areas. Guys line up for em.

Tue, 11/26/2013 - 17:52 | Link to Comment Sudden Debt
Sudden Debt's picture

yeah...

In Europe, industrial production is moving out at a rate of 10% a year for over 5 years now.

It's actually already to late to do anything about it now.

Tue, 11/26/2013 - 20:02 | Link to Comment BandGap
BandGap's picture

Yep, only one path open to level things out. Shit.

Tue, 11/26/2013 - 17:55 | Link to Comment yogibear
yogibear's picture

No surprise.

The way to take down a superpower, like the US is economically.  The Fed banksters are the enablers of this destruction.

China has along history of being innovative and patient.  Both excellent virtues.  

The US tumbles like the Soviet Union. 

Tue, 11/26/2013 - 18:01 | Link to Comment Red Lenin
Red Lenin's picture

True.  To the Chinese 100 years is a short time.

Tue, 11/26/2013 - 19:08 | Link to Comment BurningFuld
BurningFuld's picture

Let's get a little perspective here. Average Canadian exports $13.617.00 worth of crap annually (most likely products and goods essential to life on earth).

Average Chinese person exports $1,553.00 worth of extra special crap annually.

Tue, 11/26/2013 - 19:35 | Link to Comment forwardho
forwardho's picture

Yes, but there are 1.6 BILLION Chinese persons.

Do the math.

Tue, 11/26/2013 - 19:23 | Link to Comment Son of Captain Nemo
Son of Captain Nemo's picture

Don't understand why you got "down arrowed"?...

Answer: Residual American hubris looking in rearview mirror.

Part II of that answer.

Keep looking in the mirror because our mighty American Coporations are responsible for giving away it's crown jewels.

Tue, 11/26/2013 - 17:50 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Yeah but do Chinese Banksters have White House cuff links?

So there

Tue, 11/26/2013 - 18:40 | Link to Comment strangeglove
strangeglove's picture

Umm where do you think those were made?

Tue, 11/26/2013 - 17:55 | Link to Comment skank
skank's picture

Future By Design (Inspired By Jacque Fresco´s Venus Project & Zeitgeist Addendum)
http://www.youtube.com/watch?v=riNeQbxM1gE

Tue, 11/26/2013 - 18:48 | Link to Comment LawsofPhysics
LawsofPhysics's picture

The chinese invented paper promises.  They are very good at central planning and genocide.  This is no surprise.  The difference is in what the CBs have been buying.  China prints and buys physical assets.  The fed prints and buys votes. 

Tue, 11/26/2013 - 19:32 | Link to Comment forwardho
forwardho's picture

Agree with the genocide part, but they have just recinded the 1 child only policy.

Why would China need the expected 425 million children that will result from this major change?

In 18 years will they be sent overseas to subjugate the world? or kept at home to be debt slaves for the present generation. China plans long term, who can truly know the unscrutable Oriental?

 

 

Tue, 11/26/2013 - 20:07 | Link to Comment BandGap
BandGap's picture

The Fed prints and buys very sophisticated weaponry, too. And the US has been testing this for 20, starting with the first Gulf War. It's not what you buy, it's what you get to keep.

Tue, 11/26/2013 - 18:16 | Link to Comment Running On Bing...
Running On Bingo Fuel's picture

China does pretty well with DDOS attacks, no?

Over.

Tue, 11/26/2013 - 18:24 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Damn those Chinese.  They mistakenly believe that equity is built through hard work, increases in productivity, and free markets.

 

Tue, 11/26/2013 - 18:23 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

This also explains, to a degree, why there is no inflation in the US. The Chinese have bought it all.

Personally, my hat's off to the Chinese. They've beaten Western ecoromrics at their own game.

Free egg rolls for everybody!

Tue, 11/26/2013 - 18:52 | Link to Comment negative rates
negative rates's picture

Make mine a shrimp one.

Tue, 11/26/2013 - 18:57 | Link to Comment Incubus
Incubus's picture

All your jets, bombs, ships, and drones mean shit if you can't afford to operate them.

 

Well played, China.  Well played.

 

I guess I need to start learning Mandarin sooner than I thought.  lol jk nvm goin to facebook

Tue, 11/26/2013 - 19:26 | Link to Comment shovelhead
shovelhead's picture

No limit credit card.

We haz em.

Tue, 11/26/2013 - 20:09 | Link to Comment BandGap
BandGap's picture

The US has a printing press too. In a world of make believe we can afford anything.

Tue, 11/26/2013 - 19:21 | Link to Comment Kina
Kina's picture

??? USA  ?????

??

tooo bad ..doesn't do chinese characters here

Tue, 11/26/2013 - 19:22 | Link to Comment Dragonsgrace
Dragonsgrace's picture

I do not pretend to be an expert on anything.  Buuuutt, I have been over there a few times and done some business.  The "joke" and it is not a joke is that in China business people have at least five sets of books.  One for the government, one for your partner, one for your wife and one for your mistress and one of course for yourself.  What may look invincible on the surface might not be as it appears.  

Some of you who are experts could help me and try to explain what this chart really means.  It is certainly important.  I get that.  To me it appears that China has simply out "QE'd" the world.  Yet, the inflation will not hit them because they have been able to direct the QE "magic" to domestic real investments and not the trading desks of the big banks?  Am I getting this right?  

So "bitzches" school me.  

Tue, 11/26/2013 - 19:31 | Link to Comment shovelhead
shovelhead's picture

This is why people own 3 empty apartments in Ghost cities and the Party apparatchiks own real estate in London and California.

The peasants own floating pigs.

Tue, 11/26/2013 - 19:49 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Those empty apartments won't be so empty once the paper game is up and they burn it. The best at the brightest including business are going to be flocking to China because it is the only place that has any money worth a shit cause the FED and everyone else to drown in their own paper. China can burn their paper up and just reissue a new currency backed by gold. They automatically win and as someone mention what the fuck is the US going to do with all that military hardware if they can't afford to operate it and the personal is sufficiently demoralized (which is exactly what O is working doing right now, systematically weakening the US military). There is a controlled take down of the US going on right now and O is on it and playing his part to perfection.

Tue, 11/26/2013 - 20:13 | Link to Comment BandGap
BandGap's picture

No Fucking Way

Do you honestly believe that when the shit hits the fan the best equipped, most highly trained army in the world is going to sit still? NFW

The US WILL find a reason to start a fight. The US WILL engage China and use what it must to re-level the playing field.

The US will open up China to the Japanese, who are getting glowing recommendations.

Fun, huh?

Tue, 11/26/2013 - 20:34 | Link to Comment forwardho
forwardho's picture

Do the math.

1.6 billion Chinese. (used to hardship)

320 million murcuns. (used to a mink teacup)

They can throw rocks and still bury U.S.

Tue, 11/26/2013 - 20:44 | Link to Comment nmewn
nmewn's picture

You're using the wrong tactics, large numbers never equate to a final victory.

Thermopylae ;-)

Besides, 99% would drown carrying their rocks over during the swim...lol.

 

Tue, 11/26/2013 - 20:47 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

You keep believing that as O removes all the Generals and replaces them with ones that are in line with the bigger globalist picture and won't go against him since they are caught in a quandry about defending against all enemies domestic and one of those domestic enemies happens to be the one they have to take orders from. I hope they figure it out and a work around before it is too late. The clock is ticking. The pensions and healthcare after leaving are under attack now by that very same domestic enemy they rely on after serving. Let's see how willing people are to put their necks on the line strictly on principle over China and Japan which has nothing to do with defending the Constitution.

Tue, 11/26/2013 - 19:24 | Link to Comment orangegeek
orangegeek's picture

communists

 

 

Tue, 11/26/2013 - 19:43 | Link to Comment falak pema
falak pema's picture

we are now counting numbers of accumulated electronic money that means nothing in terms of the real economy.

Its like trying to count the SIZE of the shadow of real buildings as a measure of economic wealth; assuming that the size of the shadow is proportional, under mid day sun, to the size of the real building.

"My sky scraper casts a longer shadow than yours does."

Not only is the shadow a vain measure of value it is also value less per se, as the building could be as decrepid as the  city of Detroit all rusted out in empty abandoned lots.

Mad dogs and Englishmen under the noon day sun...and chinese barons all crazy about parking their ill owned wealth in western RE. 

Ask a filthyrich, fast on the draw, Chinaman what its like to bang his wife and have a smoke at the same time... he will tell you a tale to make his wife smolder into frustrated madness.

Opium is to some what tall shadows are to others.

Bernanke and consorts are half hooked on smoking the one all the while half spooked on growing the other. 

 

Tue, 11/26/2013 - 19:48 | Link to Comment blindman
blindman's picture

Wo jiang nulì wèi shípin.

Tue, 11/26/2013 - 19:48 | Link to Comment RMolineaux
RMolineaux's picture

It looks to me like you are comparing apples and oranges.  Western central banks vs Chinese commercial banks.

Wed, 11/27/2013 - 00:01 | Link to Comment Againstthelie
Againstthelie's picture

Just saw your post after I posted mine.

It's a bit shocking: you and me we are the only two posters that recognized the "mistake".

Tue, 11/26/2013 - 23:58 | Link to Comment Againstthelie
Againstthelie's picture

That's comparing apples and oranges and is a bit strange for ZH.

The growth of bank balance sheets should be compared with other bank balance sheets and central bank sheets with CB sheets not private bank sheets. Since it are the private banks that create money in this regime, it's normal that their balance sheets grwo must faster than CBs sheets. That in the western world and Japan this mechanism is broken due to saturated and overindebted societies, is not China's fault.

Another topic is, if the Chinese credit growth is sustainable. But it has nothing to do with the size of the FED, BoJ, BoE, ECB.

 

Wed, 01/22/2014 - 08:49 | Link to Comment edwardo1
edwardo1's picture

Thank goodness China is acquiring physical gold so they'll have something they can deflate all their domestic, and, ahem, foreign debt against. Hmm, maybe that's why they've been hoovering up so much physical.

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