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Why Is The IMF Trying To Divert The Attention Away From China?
China’s financial markets remain in a very precarious state as the stock indices are moving up and down like jo-jo’s. Despite this, the index is still trading 50% higher than where it was just one year ago even though it has fallen through the important 200 day moving average after bouncing on this average for three consecutive times.
Source: stockcharts.com
There’s no immediate solution available and China’s prime minister has assured the country would not use quantitative easing as a solution to support its weakening economy. That’s an interesting move given the fact it devaluated the currency by 2% in August, and one would think a round of quantitative easing would help the Chinese government to reduce the value of the Yuan even further to improve China’s export position.
The comment China would not use quantitative easing to boost the economy should be seen by the exceptional trading volatility of the offshore Yuan on Thursday. In a very short timeframe, the Yuan gained approximately 1% versus the US Dollar and this was a very surprising (and large) move. The Chinese Central Bank hasn’t confirmed this yet, but our suspicions are that the Central Bank has been dumping some more foreign currency on the market to boost the Yuan, strengthening the impact of the statement it would not resort to quantitative easing.
Source: NY Times
Meanwhile, the country has announced major construction activities to start, and reports about a $22B+ bridge and highway construction projects have been confirmed by the office of the economic planner of the country. Approximately $1.1B will be spent on developing one single bridge in the Hubei province and it sure looks like China is pretending everything is alright and the world should stop focusing on them as being the source of all problems.
And the country gets help from an unexpected party; the IMF. In a recent statement, IMF chief Lagarde said that ‘if there’s any growth amongst the emerging economies, it will come from India’. Wait, let’s take a step back and re-read the statement. China is still growing and will continue to do so albeit at a slower rate, and the head of the IMF dismisses that and says all eyes should be on India?
Source: ndtvimg.com
This seems to be an attempt to divert the attention from China and instead push another emerging economy in the spot light and whilst we don’t want to deny India’s growth prospects are excellent, the IMF seems to be overstepping boundaries here.
Everybody is trying to make us believe that everything will be alright, but isn’t that usually the case when the situation is worse than expected?
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China has no current account problem. Foreign reserves are plenty. The China problem is therefore internal and not the domaine of the IMF.
Christine Retarde ... I know that women generally should wear larger jewelry as they age, but I think that ring is taking it to a whole new level.
Meh...ain't nuttin'.
You should see her strutting along the Champs Élysées with her fist stuffed into her favourite Mario ring-piece.
And all the shabbos goy be all like..."EEWWWWWW!!"
...and she's not doing this just to distract away from China...she's doing it because she's a sadistic witch.
Every two months that a reconciliation of reality can be put off is 1 billion man years of human production. It's also what everyone is used to, while most of the real wealth is being mined out of the greater population, so even the most ground down can't see any alternative but will put their full efforts into maintaining the present system. When it fails all the real things will still be there, just the intervening system of fees will lock up, even the parasitic classes will have incentive to establish something quickly as if people figure out how to re-establish trade before a new scam is started, they may well have a short and uncomfortable existence.
"Higway construction projects" like in the USA?
QE is just direct wealth transfer to the oligarchs, it has no economic effects otherwise. Brought to you by the creators of Trickle Down. It's far easier for the Chinese to just build and pacify the masses with contsruction jobs. Besides, they don't have enough of a bond market to even pretend QE.
That is accomplished by putting money for bets in their pockets and bailing them out when the bet isn't successful, like the 35 billion per day or 1 trillion per month being used to keep most favored oil-patch losers alive across the globe.
ummmyeah. http://www.dailymail.co.uk/news/article-1391073/Christine-Lagarde-tipped...
China can build all the ghost cities and bridges they want but I wish they would start building scrubbers and other air cleaners cause the crap they put in the air circles the globe---just like volcanic ash or lots of oilwells on fire at the same time (remember Gulf war 1?).... Seems like their own people would start demanding this as the air there is as thick as......you complete the comparison
Think of the IMF as banker trolls ... don't feed them.
Is India planning on building some water treatment plants and put some pipes in for household waste around the country finally?
What, and lose their rustic charm?
You can take an Indian out of the Ganges, but you can't take the Ganges out of - well, you get the point. And a HB-1 isn't an automatic path to sanitation when generations have been brought up to piss & shit outta the same water they drink from...
1oz Silver American Eagle €13 @ EurGold
https://www.eurgold.eu/silver/american-eagle-1oz-silver-coin-1-dollar-le...
Great price but the shipping cost is a killer.
China is in truoble, but nobody knows by how much and the IMF would be just as happy if nobody found out....