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Gold Jumps As China Devalues Yuan By Most In 2 Months, "Boosts Reforms" Of Corporate Bond Bubble
AsiaPac stocks are extending losses in early trading asit appears our fears about the Chinese coporate bond market bubble are also on the minds of Chinese regulators as they look to "boost reforms." After the PBOC has fixed the Yuan stronger for 8 straight days, the onshore and offshore Yuan has weakened appreciably in the last 24 hours and PBOC has devalued Yuan by 177pips - the biggest in 2 months (as PBOC researchers push to "speed up Yuan internationalization" and implicitly inclusion in the SDR basket).
Gold jumped on the Yuan devaluation...
AsiaPac stocks are lower again...
- *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 0.5% TO 3,400
- *MSCI ASIA PACIFIC INDEX DROPS 1.4%, EXTENDING DECLINE
As fears rise of a bubble in Chinese corporate bonds...
Reform it!
- *CHINA TO BOOST CORPORATE BOND MARKET REFORM: 21ST HERALD
Good luck, as Commerzbank's Zhou concludes...
"Global investors are looking for signs of a collapse in China, which itself could increase the chances of a crash... This game can’t go on forever."
* * *
The Yuan has been 'fixed' stronger for 8 straight days... but tonight PBOC devalues Yuan by 177pips - the most in 2 months
- *CHINA SETS YUAN REFERENCE RATE AT 6.3408 AGAINST U.S. DOLLAR
- *CHINA WEAKENS YUAN FIXING MOST SINCE AUG. 13
And PBOC reseeacrhers are pushing for rapid internationalization of Yuan (and inclusion in the SDR basket)... beginning their paper with the rather USD reserve Currency Status challenging statement:
World History tells us that economic power is necessarily financial power, only to become the financial powerhouse before it can become an economic power.
China must speed up yuan internationalization to develop the finance industry, PBOC research bureau head Lu Lei writes in People’s Daily.
- The yuan needs to be included in the SDR basket, Lu writes
- China’s current financial structure is dominated by indirect financing and doesn’t make enough sense, Lu writes
- China should further improve stock market and increase the proportion of equity financing, Lu writes
Financial power is the inevitable direction of sustainable development of economic power
Charts: Bloomberg
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A mahjong market melee.
and so it begins......again
The list of financial commentators and advisors who think that holding ANY gold or silver is a bad move, here is a rebuttal if you run across one. Considering the current monetary and economic landscape how anyone can claim that you should not hold any precious metals in your portfolio is beyond me.
So we can expect another explosive Chinese "accident" tonight?
The problem for china making yuan to a global currency is that all money is based on only one thing: Trust.
People are maybe losing their believe in USD and EUROs,
but who will be stupid enough to believe if only for a second that the chinese will do any better?
China is an economic basket case. I'm not seeing the grand long term planning I hear so much about.
When a country produces people who believe the above list of items you are bound to fail. The first is an implication that China will fail if the world doesn't choose to rely on its currency as a means of storing value... or it will lose value even though it must be devalued in order to be included in the SDR?
Because in a... market... money will flow like water to where it is most loved versus where some model indictates it is supposed to go?
If a country, a government in this case, can simply "further improve stock market" then is it really a market that reflects anything bearing a semblance to reality and not lies you tell yourself as the printer goes rmb-rmb-rmb-rmb?
As to the grand plan...
I think the Chinese have their plan but it is not working out.
I think the agents of Red Shield have their plan and the Chinese are unwittingly playing their part.
I think the Fed has/had a plan but it is not working out. Or maybe it is. I cannot say that all Fed members are on the same side.
I think the Russians have their plan and it seems to be to float like a butterfly and sting like a bee, hit 'em where they aint, but forget the three yards and a cloud of dust.
Blub... Blub...Blub. Looks like all that profit from the" Jobs farce" is looking for a home to roost, but can't justify recycling through Asia.
I was shopping Cable earlier. I might hit that for 50 pips later. China is a basket case, but acually the cleanest dirty shirt currently.{ next 24 hours}
The Fed is so completely neutered. Who in their right mind takes on $ usd denominated debt?
My moment of clarity came. Short term $ denominated debt is way oversold after the jobs numbers. Look at the curve!
Anything under 2 years is a buy.
"Anything under 2 years is a buy".....then stocks are headed ....massively south. can't have it both ways YC. Unless, of course, Janet buys the equity market at the same time. If this happens, then gold rises - lock step. There's no free lunch.
Don't put words in my mouth. [Two year TREASURY NOTES} you Meatball.
What part of shorting the equity markets did you miss? Thanks for fucking it up " Captain Obvious"
The trade is blown/ Now I have no where to go.
Is OPEX last Farfegnugen?
Carl Ichan looks ripe for a personality check?
sorry man. didn't know i had so much power - and i meant no disrespect.
You're really that, "touchy feely" emotionally?
I gave you a fantastic trading tip, under the cuff. You blew the opportunity.
You need to park your EGO, or you're going No'where. Been there done that about 3 decades ago.
I see promise in you, and was trying to help you.
right until wrong ha...
yen long crystal balls, got balls?
Shit piles!
Whoop! There it is!
Bye bye Dollar!
Dear mindless, soulless, non intellegent computer at ZeroHedge:
I do not want to receive ZH by email. Can we get that straight.
Why must I be asked this question WITH EVERY MOUSE CLICK???
Seriously...to just sign in and open this article I have had to decline your (generous, beneficial I'm sure) off 4 fucking times.....in 45 seconds. NO, I prefer to open the page and see what I want to read. I already get one thousand (plus) junk emails a week. I do not want a few hundred more.
I have told you this before but apparently you did not understand. You could have a little check box on the offer that says 'DO NOT SHOW THIS MESSAGE AGAIN'. Lots of even less sophisticated sites do that.
I sometimes wonder...if I said yes ...would you stop asking me? I doubt it because if I have to say no a few hundered time a week I suspect you would not understand that either.
I believe this is futile but I thought I'd try one more time.
Please stop asking. You are beginning to look like a pathetic guy who asks a cheerleader out and is too dense to take no for an answer.
No means no ZH computer. Ask your programmer...I bet he would tell you the same thing...hopefully.....
Brah Doge, just get Adblock.
"Adblock changed my life!"
+100 mine too!
ZH gave me a really insidious pop up yesterday, one of those fake blue scenes with an audio warning that i should call a certain phone number to have viruses removed from my computer.
You've been SPOOFED. I've been hack attacked, but my LINUX kernal always changes.
It's an election year, and Zero Hedge has a plethora of wealthy well informed individuals to infiltrate.
Boost your security , and your Firewall.
We catch "keystroke" loggers all the time.
Mostly Chinese.
ZH has the buggiest platform of any site I visit. The pages continue loading or reload continuously and something keeps hitting my hard drive. I spend more time yelling at the computer over performance issues than I do about the things I read here and that's saying something. The content is excellent but I'm often relieved when I just close the page and walk away.
Gotta stay sharp.
What with Windows 10 I've been thinking that my next computer should use Linux. You mentioned Linux. Any recommendations on system/software configurations?
Linux Mint - any hardware you like. Preferably 4G or more of RAM.
It is Ubuntu based, but has all the extra pretty stuff an tools you want already pre-installed.
Thanks. I'll check that out.
You said a lot very succinctly.
It takes 6 months for the Tyler's to take note of trolls, performance issues, browser crashes, etc.
But still they have the best blog on the Internet.
Until they don't.
Olé!!
That means that probably another 150 to 200 billion in US government bonds have been sold.
Americans should start to fear a dollar liquidation in the world pretty fast and they should also know that as the violence of their wars has come home, so will the exported inflation come home. And always with that little bit of extra...
LOL, just the opposite my naive friend. We are getting dollar debt liquidation, not dollar liquidation. I will be delighted in taking all the dollar bears money.
Dollar debt liquidation puts dollars on the forex market. Especially China's dollars. You sir, are a fucking moron.
Sudden Debt - Yer a hard one to read. There's times when you are pro status quo and you're calling us all crazy and there's other times you're advising an alarmist stance. Dunno if you're wise, random or high.
"That means that probably another 150 to 200 billion in US government bonds have been sold."
Yeah, but Belgium will vacuum them up in a flash - won't they? Next time you are in Brussels, see if the toilet paper there looks like recycled U.S. Treasuries!
Is China finally ready to take the anchor off of Gold Price ???
Oh, sure. Put China's Mao-money in the SDR basket. Gimmie a break.
Every time the Chinese government oligarchs ratchet down the Yuan, is there anyone here that doesn't understand, dozens of Communist Chinese officials are trading into the news? Come on. These people have never worked a day in their lives. That's why gold shoots up at each devaluation. These communist punks and scoundrels are the children of former communist officials, the people who actually walked the Long March barefoot with Mao. The current crop of government oligarchs are just their children, and typically spoilt brats. They're insider trading on China's currency manipulation every step of the way, in preparation for intrepid flight to the French Riviera, New York, Las Vegas, Los Angelas or San Francisco if they so inclined ~~. LoL
These squirmy little communist government brats are mostly southern Chinese. They're an entirely different breed from the northern Chinese, or the western Chinese. The southern Chinese are short, stocky, and their young women are incredibly flat-assed and short-legged. The northern and western Chinese are far more physically robust, and their women are far more attractive in a western cultural sense.
Give them their comic due, this corrupt communist rabble in the seat of power today in China. They're all hanging on, bait for the coming machete hacking, pike plunging Chinese revolution of their endless nightmares.
Every time I hear a Yankee rant, I'm reminded that unless you can steal something, you are nothing.
latest reincarnation of Chairman Mao VS the latest reincarnation of Jamie Dimon?
WHO THE FUCK CARES?
For what it's worth ...
Former NBA star Lamar Odom was hospitalized on Tuesday after he was found unresponsive at a Nevada brothel, law enforcement officials said.
Shocked, I tell you.
.
Gung hey fat choy, bitchez!
Gold will be down by tomorrow morning courtesy of the Gold Cartel. Gold is never allowed to rise on bullish news. Nevah
"Nothing to see here. Go back to watching football."
I hate to deliver bad news. Gold is going down tomorrow morning.
Why is that ??
Did you wet the bed last night?
Because yields on shorter term 'Treasury Notes' is/are going down.
Profits need to be parked somewhere, and I'd park them in over sold Treasury Notes. That implys $usd demand, and , not unlike the Nikkei, lack of NOMINAL yield.
Thanks for asking, and I still love you.
If you want to short equities tomorrow, it's a good idea.
Thx for the breakdown Yen...
so many intelligent people on ZH
Not everyone is a trader. Big money that stays still got decades is moving into gold. Not garbage
It's called macro. It consists of the likes of Glencore.
You are wrong.. so get lost.
I guess we can expect more chemical warehouses to blow up and burn over the next few days.
Cartel motherfuckers:
Let the gold price move freely.
In August China warned that they will sharply devalue the yuan if US raise rates forcing them to abandoning the peg to keep competitive against other Asian countries that massively keep devaluating their currencies for over o years now.
But they still intend to devaluate yuan slowly, gradually by about 20-30% to compensate for the Asian currency war, so they think, no realizing that the war will go on and the former Asian tigers would not hesitate to plunge themselves in to depression to protect their export trades in the global demand collapse environment and weaken currency since for the mafias which run those countries there is no alternative to the gluttony and greed and they will never go for redistribution of the wealth via sharp increase of the standard of living among fellow citizen, they will rather runaway with the money to the US capitalist kingdom like thousands Chinese already did.
More independent opinion and analysis on China I found at :
https://contrarianopinion.wordpress.com/economy-update/
I feel someone knows something of FED plans, could be wrong but bank Westpac of Australia has lifted its interest rates.
The RBA is going to lower rates another 25 basis points. There's absolutey no way, after Abbots departure, that the aud/usd and eur/aud quotient will continue.
If you triangulate the trade, it's unbalanced. eur/usd aud/usd & finally eur/aud, it's completely unbalanced.
I understand , terms of trade, and the Australian $ should be riding the 75 aud/usd handle.
Now, facts aside. I think the Australian Dollar is going to test the 60's handle with $usd over the next 3-6 months, based on some interesting dynamics.
Factoring in additional ECB or BoJ easing just exacerbates the trade differentialities.
Australia needs to step-up on the Oceanic (Trans Pacific) map.
Shit piles.
Pretty much.
Isn't it impossible to devalue your currency against a currency backed only by the debt you hold in swf?
That's a weird unmanageable juxtaposition. I mean debt free China devaluing their currency against USD while holding $1.4 trillion in US Treasury issues.
How is that possible?
I have savings in rmb and I am reluctant to convert back to USD because I think they are full of shit and the rmb will outperform against the dollar whether rates go up or not.
bullshit article. here's the truth:
http://www.talkmarkets.com/content/global-markets/another-yuan-devaluati...
Are China walking into a trap?
If you join the SDR basket then you are fiat dollar owned and with that ininite economic power you just gave yourself up. Or by joining, are you putting the Yuan into the basket and the long term plan to absorb the rest?
That will be an interesting economic struggle because you know the US will veto any loss of economic power so where you going to get it from but they will expect you to serve them economically.
The way the "yuan devaluation" keeps being mentioned, you'd think it would actually show up on a chart. I do not see the Yuan being devalued. I just don't see it. It is stronger now vs the USD than it was a month or so ago after the week they let it slip a couple percent. It hasn't been devalued since then. It has strengthened constantly. What should I be looking at? I have the chart right in front of me. The USD has been hammered way more than the Yuan in the last month.
Wasn't the last vote just taken on adding a currency to the sdr? Next one in 5 years?
SPrey. Monetized my post.
Gold could still have some more upward movement on the medium-term, short-term some resistance can be expected though.
http://tripstrading.com/2015/10/12/gold-breaks-out-of-declining-trend-ch...
Signals for Silver are quite bullish
http://tripstrading.com/2015/10/10/silver-wave-4-in-play/