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China's 'Nasdaq' Rises For 6th Straight Day As Commodities, Freight Index Collapse
The PBOC weakened the Yuan fix for the 7th straight day - the longest such streak of 'devaluation' since 2012 - which appears to have helped fuel yet another day of gains for China's most-levered Shenzhen and ChiNext stock indices (even though the USDollar is losing altitude against Asian FX). At the break we note that the lower beta CSI-300 and Shanghai Composite are diverging lower. Meanwhile, over in real economy land, Copper is hitting new lows, nickel is weak, zinc is down, and China Containerized Freight Index just hit a new record low... but when has any of that ever mattered?
PBOC devalued the Yuan Fix for the 7th straight day - that is the longest streak since May 2012...Currency war death by a thousand cuts?
But The USDollar is losing ground against Asian FX in general overnight...
High-beta Shenzhen is now up 6 straight days...almost entirely retracing the drop from China's devaluation...
But Shenzhen (red) and ChiNext (yellow) are notably diverging from Shanghai Composite (blue) and CSI-300 (green) in the last few days...
However, amid all this exuberant releveraging and stability, Commodity prices are plunging and Containerized Freight (i.e. exports) costs have hit record lows...
Charts: Bloomberg
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Maybe that explains the sudden rise in longer dated $usd denominated notes?
It's pretty apparent that sovereigns are liquidatiing $usd denominated debt.
Where's all that cash going? It's evaporating, and NEVER existed in the first place.
That's why commodity prices are being manipulated.
That's why commodity prices are being manipulated.
Real crap is on fire sale......hush up and don't tell anyone.
So everyone is screaming running out the building....and I'm walking in.
Qe/zirp/nirp/currency devaluations until mushroom clouds are exploding all over the globe,...tick tock motherfuckers
I'm just glad the Chinese are now on board with the idea that only paper assets have value.
Meanwhile, in China's restive west, Uncle Scam is having a ghost party.
http://landdestroyer.blogspot.com/2015/11/chinas-xinjiang-problem-made-i...
More like Chinee water torture
a little drop at a time ...
Is China playing a blinder?
It is centrally planned, which allows big picture, strategic thinking.
The West relies on competition to maximise profit for individual players, with no mechanisms for big picture thinking and strategic, long term planning. It’s markets have moved to high frequency trading to make a second a long term investment.
After 2008, China noted that it had all the surpluses with lots of US treasuries, while the West was drowning in debt and if there were any big debt write downs, it would lose out big time. Western debt would be written off giving them a free lunch.
China started building up its debt, but engaged in useful investment in infrastructure, while the West carried on inflating the prices of stuff that exists already, houses, stocks, fine art ..... etc .....
China is now ready for the debt write downs when the world recognises it can’t handle its debt.
China still has scope to lower interest rates to make its debt more affordable, in the West that luxury disappeared seven years ago.
In the West, the inflated prices of assets that already existed will go down to their pre-bubble levels.
China will have its infrastructure and empty cities ready for the future.
Not sure if you understand what is going on. Read more ZH. The bankers in the west played the Chinese like a fiddle. One day very soon they will wake up and rebel. When that happens the SHTF.
The bankers in the west played the Chinese like a fiddle.
Word is they're gonna trade their mountain of paper for the world's biggest ball of yarn.....then they will rule the world.
Fin....the end.
Okay I ripped through the charts and looked at volume.
Obviously I don't have enough duration information, to fully define risk exposure.
My two cents, just solidify, that offshore markets are using "excess reserves" to service their economies.
I get yelled at for posting charts.
You just freakin go chart jockey.....screw'em.
"Sigh."
How would you explain this in economics class? You couldn't!
CTRL
I don't see what everyone is talking about in their opaque, veiled, anti-American comments that seem to hint at imminent dollar collapse with every hungry, hot, panting keyboard stroke. Look at the final chart, "However, amid all this exuberant releveraging and stability, Commodity prices are plunging and Containerized Freight (i.e. exports) costs have hit record lows..."
That's Chinese exports the chart is referencing. Chinese exports have collapsed.
It should be obvious, the world economy is still run on dollars, based on this final chart. It runs on dollars so strongly, the maker of the chart doesn't even bother to state that the coinage used in the chart is the U.S. dollar, not the Chinese yaun.
China is hemorrhaging every which way it turns, wrything as it is, painfully. And as China hermorrhages, the increasingly unemployed pigtailed masses are sharpening their machetes and gathering their pitchforks. That's what I see. Chinese potato farmers are checking and re-checking their storage bins for late-blight and pilferage. Chinamen everywhere in China are looking at their old rickshaws, wondering if that entrepreneurialist tool of days gone past isn't going to be revived by barebacked, sandaled peasants in boxer shorts selling their sleeting sweat.
And the Chinese oligarchy is fleeing in record numbers too, with record cash, dollar denominated cash to be sure. Trying to flee with gold is far too cumbersome. Getting caught either way is proving much worse than unfortunate, fatal. Fleeing, desperate as it is, results in condemning great swathes of the relatives of the fleeing oligarchy, loved ones left behind in China, condemning those poor unfortunate souls to face the music in the now nearly idle Chinese prison factories, young and old, whole single-child families, whole clans. There are people disappearing off the streets of China in every province, as fast, or faster than stray dogs and cats are disappearing off the streets of China. Worse yet, steely-cold starvation stalks those in the growing newly-unemployed urban ghettos where curious crowds gather around barrels and burn rubbish to keep warm day after day, in the Chinese version of Waiting for Godot... But in this case, Godot's name is Janet. These people aren't godless existentialists, so much as they are becoming numbed and mindless existentialists in the typical Chinese fashion. Janet is going to raise rates. And China is going to explode blood everywhere.
It's the end of the world in China. Around those trash barrels on street corners in China, they'll be burning yuan to keep warm soon enough.
In 3, 2, 1 we are going to see the complete break-up of China, a break-up that will make the near-bloodless break-up of the USSR look like a calm and well-organized Centennial Ruskie Revolutionary Reunion of sorts.
ZH needs to hire you asap. That was awesome.
::: dove clap :::
And I feel fine.
These figures are such small snapshot in time that are meaningless.
Here is the SSE Shanghai Composite Index.
http://finance.yahoo.com/echarts?s=000001.SS+Interactive#{%22range%22:%22max%22,%22allowChartStacking%22:true}
Oh.
It's up. You wouldn't know it by reading this column.
China Containerized Freight Index just hit a new record low...
it should pick up with the after-xmas rush. [/SARCASM]
if exports are dropping off now jebus tap dancing christ it's going to be bad after the first of the year. i don't know about you guys but i'm waiting until january to buy my own gifts. not worried at all about big ticket items being sold out. i'm going to make them an offer they can't refuse. [/don corleone]
After the crash, I'll offer $50 for that ass pussy painting to that dumb chinaman who paid $170 million. It will look nice on my bunker wall.
Who says they will be willing to sell?
Pack of cigarettes for the nudie picture?
Yeah.....I just can't get there.