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China's Liquidity Injection Did Not Calm All Its Credit Markets
While last night's almost unprecedented reverse repo liquidty injection into the Chinese banking system stopped the bleeding of short-dated money-market rates briefly, the likelihood remains that a shadow-banking system default will occur: As CASS's Zhang noted:
- *CHINA TRUSTS AND SHADOW BANKING TO SEE DEFAULTS IN 2014: ZHANG
- *CHINA SHADOW-BANKING DEFAULTS WOULD BE GOOD THING: CASS'S ZHANG
Perhaps that explains why China's CDS spread remains at its highest since the summer credit crunch, barely budging on last night's cash drop. At double the default risk of Japan, China appears far from out of the contagion fire.
China's risk makes the US debt ceiling debacle look miniscule and while liquidity does not reign supreme in these markets, the last few months have seen considerably more activity in Asian sovereign CDS...
China's Academy of Social Sciences Zhang Ming had a few other things to say...
- *CHINA EXPORTS MAY NOT BE AS GOOD AS MARKET EXPECTS: ZHANG
- *CHINA MONETARY POLICY TO REMAIN RELATIVELY TIGHT IN 2014: ZHANG
- *YUAN APPRECIATION COMING TO AN END, CASS'S ZHANG MING SAYS
- *YUAN MAY WEAKEN AFTER REACHING 6 PER DOLLAR: RESEARCHER ZHANG
and typically is seen as yet another mouthpiece for the administration... so that won't please Schumer and his crowd...
Chart: Bloomberg
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Did the Fed succeed in exporting default risk?
No. keep this simple as shit. Those that understand what is going on are going to take the money and run.
Clear as the shit on their noses.
Having a shadow bank in China is like having tits on a chinese woman, they only exist in your imagination.
Boeing and Caterpillar... :P
strange...I've found a liquidity injection to be quite calming, maybe it's in the presentation....
I bought a shitload of GDXJ today. Hence, gold is fukt. My condolences....
Are you saying that Gold will GOLD down?
China is having a tough go. It's inflation related though. I'm not taking sides.\
The yuan is at (6) year highs vs usd. That's pathetic, and just shows the wasteland Bernankenstein has dealt the " U.S. economy".
The Bernanke bubbles are starting to boil the frogs abroad. We've exported inflation and imported Choom-by-ya.
'Hey, smoke up Yenny!' ;) - John Bender 1985.
10 percent faux growth revealed-ha, built on yuan/dollar cheap labor growth ponzi scheme that is unwinding with further increments of liquidity to keep er going. ha. nice job ben-financial war at its finest with china falling right into the trap. but alas, does china have some gold up their sleave?
central planners and their loose of control with guess what, more controls to control the controls that getting out of control. peg that shit mon!
Worst case scenario: PBOC lets shadow banking defaults, housing bubble collapses, PBOC devalues Yuan by 90%, riots spread across China,
Xi JinPing gets assasinated, Bo Xi Lai reclaims throne and turns China back into Communist, dumps USD debt and Japs take over island then boom WW3
Likely scenario: PBOC prints moar to prolong the ponzi scheme as inflation rises 10% in China and since 98% of ordinary Chinese don't care about Politix, life goes on as usual like nothing happened
folks need to stop looking at "numbers" (the "yuan/dollar exchange rate") and start looking at the data (natural gas production numbers.) we've known for at least three centuries that North America is sitting on a "planetary equivalent" of natural gas. by hammering "Big Coal" you're shutting in production thus unleashing "Jupiter" (the gas giant) which is a lot easier to get to than coal of any kind.
the "technology" has already been proven.
http://en.wikipedia.org/wiki/Lolland_Hydrogen_Community
http://www.nrel.gov/hydrogen/proj_wind_hydrogen.html
http://www.iphe.net/docs/Renew_H2_SaharaWind.pdf
by trying to "control" interest rates (destroy the very idea of savings by forcing interest rates to zero) you're unleashing a "production binge" so, sure..."keep those exports of cheap energy from coming to the USA"...problem being "cheap (free?) energy already exists in the USA." (and Canada.)
http://en.wikipedia.org/wiki/ClearEdge_Power
Drink water much?
I'd like to inject some liquidity into my hot Chinese neighbor
Quite a few turbulent events are all coming to a head at once.
This morning on cnbc the anchors, in unison, were calming the audience by stating that Chinas Banking System is not ingrained enough into the World Banking System to be a threat Systemically.
It's as though they were not aware, that Far, Far smaller countries were the Turning Point to dominoes falling in the past.
China can flush out it's shadow banking - and say f*ck America's con-job and the world, but it will need to provide a buffer for it's people. Something to keep the people happy...that'll be cheap energy and nationalism.
http://youtu.be/G7xP5EFThh0
These recent developments are mind numbingly bullish!
BUY BUY BUY!!
E-Minis TO THE MOOOONNNN!!!
Deleted - wrong thread
Meanwhile the controlled sell-off in US equities is just that, completely controlled, and ready for the late day ramp. All while they go mad for bonds. Whatever, don't think anyone's jumping from windows on Wall Street just yet
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