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China Fixes Yuan Stronger After Premier Li Says "No QE" Amid Record High, Surging Pork Prices
Despite the biggest intervention surge in offshore Yuan on record ("predatoring" any excess speculative fervor on PBOC actions in the spot market), a 'PBOC Advisor' noted that "long-term FX intervention was not their target." The Hong Kong Dollar is pressuring the strong-end of its range against the USD, trapped between the USD peg and weak economy (like so many others). Chinese stocks continue to tread water as China's Premier Li rules out QE (perhaps because pork prices are already at record high prices and are rising at a record pace), exclaiming that there "well be no hard landing," but BofAML expected 50-100bps more RRR cuts this year. PBOC strengthened the Yuan Fix tonight (just modestly).
Despite this...
- *PBOC ADVISER SAYS LONG-TERM FOREX INTERVENTION NOT TARGET: NEWS
Offshore Yuan surged by the most on record overnight (removing all the devaluation premium)...
After last night's major devaluation, PBOC strengthens Yuan:
- *CHINA SETS YUAN REFERENCE RATE AT 6.3719 AGAINST U.S. DOLLAR
And officials proudly crowed that...
- *AT LEAST 47 FOREIGN CENTRAL BANKS HAVE YUAN RESERVES: FIN. NEWS
And in other FX news:
- *HONG KONG DOLLAR TOUCHES STRONG END OF PERMITED RANGE TO USD
China's Premier ruled out Quantitative Easing since he implored thare will no hard landing.
He said during a speech at the World Economic Forum in Dalian on Thursday that quantitative easing alone could not solve structural problems in economic growth and that it would lead to negative and spillover effects.
*CHINA'S INDUSTRIAL SLOWDOWN MAY BOTTOM OUT SOON: ECO INFO DAILY
Perhaps this is why...
But BofAML says forget Pork.. we need moar... (via ForexLive)
- There is still room for one to two interest rate cuts (25bp each) in the rest of the year
- But we believe the chance for aggressive rate cuts is very small, given rising CPI inflation and capital outflow pressures
- Domestic liquidity has become tighter partly due to capital outflows and PBoC ' s FX intervention
- We expect at least 50 - 100bp in RRR cuts in coming months to offset the liquidity drain
- The PBoC will also likely use multiple tools ... to flexibly manage domestic liquidity
- Targeted credit support to key infrast ructure projects and SMEs are likely to expand
Two words - "Social Unrest"
* * *
Chinese stocks trod water overnight amid close-to-zero volume...
and are flat so far today:
- *FTSE CHINA A50 INDEX FUTURES FALL 0.2% IN SINGAPORE
- *CHINA'S CSI 300 STOCK-INDEX FUTURES RISE 0.3% TO 3,310
Charts: Bloomberg
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long cat and dog.
Tastes like chicken?
Get ready.
Does anybody even vaguely have a clue just what the hell is going on?
Once upon a non-time there was a Big Bang..
And it ain't been the same since..
When asked why he suddenly reversed course in monetary policy China's Premier Li responded: "I'll poor this sweet and sour pork on their heads."
https://www.youtube.com/watch?v=GuFIobFocIg
As to the pork prices...I know there was another flood and there were over 15,000 pigs drown, the number could have been larger, like 30,000 - I'm not going to look it up. The whole lake (a result of the flood/rains most likely) was full of pigs floating. So there was no river to grab a pig, this time, based on the news I heard and saw.
I know there has been lots of flooding and other not so natural weather events in China.
PERHAPS that's the reason for the high pork prices. I think so.
Still, I don't trust a bankster to tell me what caused shit.
Fink brought his algo team and uploaded software that causes the charts to flatten. That's flatten on command. If they want it to go up they command up. If they want it to go down,,,, you know what I mean. The whole show is rigged.
...pigeons, rats, monkeys, bats...
Hoe can pork be expensive? Don't you just go down to the river and grab the body as it floats by. Nice and tender.
Those REVERSE REPOS (7day) from last week are rolling off.
The PBoC is releasing collateral, (bonds) and the banks are swaping for, (yuan) and the farce goes on.
Instead of lowering RRR, which would cause problems with export investors, ( JPM, Vampire Squid, ect...)
The PBoC is trying to maintain liquidity, as outflows continue to accelerate.
Not unlike Greece and Cyprus, before the Oligarch jets landed.
I'm of the belief that the permanent outflows, PBoC is trying to sent out in US bills of debt. By manipulating the market, having it show an inflationary Yuan, PBoc is reaping the equivalent of a secured 2 year investment, especially if you add the discount PBoC got on the buying of the US debt instruments. This also releases PBoc of the burden of paperwork that is required to track Yuan and Yuan purchases in illegal deals.. It is a money making legal deal and the rest of the world will have to deal with the fleeing crooks of chinese industry.
Just to be clear, we're not talking floating river pig, right?
Poor China is more confused than a child molestor at a Justin Bieber concert
What's pork or meat for that matter? Since Zirp we only have rice and beans
lol
Premier Li Says, we recycle all our debt in mixing bowl, and give you anal cleansing.Let them eat dogs.
No pigeons left in China.
Chinese saying translates as 'time to eat the entrails that hang from the baboon's arsehole' (generally stir fried with plenty of hoisin sauce and chili)
https://thedailyexorcise.files.wordpress.com/2013/08/baboon-ass.jpg
This has to be bullish, right?
piggish
Apple fed pork from Poland, now that sounds like a premium product, but the Poles better appease Putin to get a pass on the Russian trains.. PLEASE
China culled their pig herds by 25% this summer so of course Pork prices are higher...
Watch for the next ChiCom party purge, after which the "pork" supply will become miraculously abundant.
Out of control Pork fried rice costs would be devastating to the Chinese restaurant industry