Here Comes The Yuantervention
Somebody had to do something...
Offshore Yuan ripped 14 handles stronger after early weakness on PBOC's "stable" fix...
And Chinese stocks lifted elegantly back to unchanged to prove its not fundamentals...
Just "psychological panic."
Panic at paying 64x valuations perhaps?
(15 votes)
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Thar She BLOWS! Man the Harpoons!
damn the torpedoes
unsinkable
For 12 hours.
Release The Kraken.
The mortals must pay!
65 x = moar qe- we can grow to that and finance it too.
With Chinese rushing into dollars could we see currency controls next?
I'm just glad I'm drinking and listening to Pink Floyd through all of this. Shine on, you crazy diamond.
G'night all. See ya 5am bright and sharp, same as usual.
If you're trading in the middle of this mess on the other side of the planet right now, God bless you.
So...... did the shanghai markets SHUT DOWN AGAIN? Price hasnt moved for an hour!
Hour and a half lunch break. Happens every day.
US futures are turning green, look for a big rip up in the SHCOMP when they return from their tea.
Or not.
My market calls are worse than Gartmans, so I'm predicting gold will be monkey-hammered down to 1080 by the cash open this morning.
They should be buying gold... Why rush into toilet paper?
All I need is this chair!
Chinese Finance Minister Bai Dam Ting says you should buy dem dam stock tings.
Don't fight the PBOC.
The People's Bank of China has more financial assets than any single public institution, and is second only to the Federal Reserve System of the United States in terms of overall central bank assets.
And they have lots of greenbacks to dump if necessary. The current deflation we are experiencing is the result of dollars not in circulation, and instead sitting on the balance sheets of various entities like PBOC.
The PBoC is less competent than the Federal Reserve… the mind reels !
I wouldn't go that far.. . Chinese citizens and the PBOC have more gold then everyone realizes and everyone period, we all know this.
And competence has nothing to do with it. The PBOC isn't about making economies or people work. It is about having power, just like the Fed.
at some point they will have no choice but to liquidate to support the yuan. think swissy.
let er fall, til? the fed is playing their reserve role to a conclusion that may be very uncomfortable. balance sheet expansion a coming...
not sure how gold will be a part of this fiat war.
Why support the yuan ? As world exporters, it's against their interest...
Because it forces everyone in the country to take pay cuts. International items will rise dramatically in price like oil and food. Chinese will move money offshore. Also, foreign customers who do take Yuan will want more of it. It is not a totally closed system.
Two words... capital flight.
"not sure how gold will be a part of this fiat war."
Unless gold is made internationally illegal, i.e unlawful to redeem for paper, it will function just like it always has.
Time will tell...
Awaiting the DOLLARTERVENTION...
Can a Nigga get a table dance in hea?
Momma kissed the boo boo and everything is all better. Now go to bed dear.
"Markets are never wrong".
LMFAO
"Markets are never wrong".
Anyone that ever believed this statement is watching too much massmedia.
China’s Yuan, China finance, and China is China’s problems. If anyone try to bring them down, they should respond accordingly. And that is what they are doing. Kudos to them.
"Markets are never wrong".
and that is why so many never win, ha...
They can be wrong longer than you have money, so I hear.
Not 64x valuations, but 64x earnings.
64x is bubblicious.
It is but I think the graph understates both it and how horrible the other exchanges actually are.
Are those ratios in terms of price to *forward* earnings ratio?
Because that's one of statistical games that's played by Wall Street. I heard this on CNBC on Friday afternoon while enjoying a tasty slice of schadenfreude. One of the apologists/cheerleaders said that stocks aren't expensive because "all throughout this rally the price to forward earnings ratio has been 16:1" which looks like what that graph shows.
But "forward earnings" are a fantasy. If you continually estimate that your company will create physical impossibilities and make eleventy billion dollars in profits every quarter then, yeah, your stock's price compared to these fantasy numbers doesn't seem outrageous. But, so what? Those numbers don't mean anything. Compared to immediately past earnings that U.S. stocks P/E ratio goes up to a completely unsupportable mid 20's, if I remember David Stockman's quick math on it. And using real accounting, not Congressman Kanjorski singing "Anything Goes" accounting it might easily go into the 30's.
I heard that comment too and almost spit up my drink. Wasn't that the same guy who was talking about buying more (moar) Apple?
64x using chinese accounting practices.... Fixed it for ya
http://www.armstrongeconomics.com/archives/41740 for you Sunday night extra reading
You got to love it.
Fundamentals only matter when we run out of greater fools.
Funny that their government is willing to buy all these bubble assets to hold indefinitely,
reminds me of the Fed who bought trillions of bad bank loans, bad mortgages, and other toxic bank assets, and untold trillions in bubble stocks. They are doing God's work. Goes hand-in-hand wth perpetuating the FIAT fraud on society at large.
Can't let Wall Street wake-up from their weekend slumber soundly under 1900. Give them a soft morning kiss.
Them ease them into the 1800's next week.
This is how the government through and with the banks they support end up owning the entire world. They buy stocks to prop them up. I don't think they ever unloaded the MBS/CDO's from the crash and are still holding those.
One day you wake up and find out the government-Fed-banks own everything, albeit with maybe one or two intermediaries.
CTrl P motherfuckers.
And look at where that's got us.
"Unpatriotic bastards are selling the stawk rip! Hunt them down in the streets comrades!" - Vice Public Security Minister Meng Qingfeng
Klytus, -I'm bored...
.........What plaything do you have to offer me today??
Ahhh, well, there's always something to liven up a dull thread ;-)
The D.C. cops won’t say what killed Mikhail Lesin—or what he was doing in a hotel room there. But all signs point to the former Kremlin propaganda boss cutting a deal with the FBI."When police found Mikhail Lesin dead in a Washington, D.C., hotel room, the most interesting question wasn’t the cause of his demise, but what he was doing in the United States in the first place.
The former propaganda chief for Russian president Vladimir Putin, nicknamed “the bulldozer” for his history of rolling over his opposition, Lesin had been under scrutiny by the FBI and the Justice Department for potential money laundering and violation of corruption laws. Lesin was suspected of hiding ill-gotten gains in nearly $30 million worth of luxury real estate in southern California, an astounding set of assets for a man supposedly collecting a civil servant’s salary. He’d also been considered for sanctions that would have prevented him from obtaining a visa to enter the United States."
http://www.thedailybeast.com/articles/2016/01/10/was-putin-s-media-chief...
Mikhail was simply out for a night on the town in DC, having a nice dinner and such.
After the Fukushima Sushi he wasn't feeling too well, however he did have a nice soft "glow" about him as he staggered slowly down the street and back to his hotel room....,
<< had been under scrutiny by the FBI and the Justice Department for potential money laundering and violation of corruption laws >>
Ha! By the looks of the trillions of money flooding into the usa being laundered by Chinese, Nigerians, Iranians, Saudis, and on and on, I can't believe the FBI still looked at that sort of thing.
And corruption laws?
Ha! We saw how effective Holder was enforcing those.
Must be a mistake.
bum bum bum bum bum bum bum bum bum bum bum bum bum bum bum bum
Crash! Ah-ahh. He'll save every one of us.
It's all psychological
hahaha
And transitory, just like oil.
yuan devaluation is the crowded trade.