China National Development And Reform Commission Joins The Party, Says QE3 Likelihood Appears High

Tyler Durden's picture

Just in case there was any concern which way China is leaning ahead of today's meeting, here is the missing clue:

  • China's NDRC official says likelihood of US QE3 appears highs
  • China's NDRC official says US QE3 will push up commodity prices and will intensify hot money flows
  • China's NDRC official says QE3 will threaten Chinese price stability

Of course, China is quite adept at saying one thing and meaning another. And with inflation there continuing to surge, and no chance of a loose monetary policy any time soon, China will be very delighted to see the Fed to another round of easing. After all by the time, exported inflation hits China it will be at least 3-6 months down the line, by which point China should have its inflation problem under control. So with Goldman and China both egging Bernanke on, we doubt there is much surprise left in today's 2:15pm announcement.

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Sudden Debt's picture


To be honest, I don't see the problem. China's inflation is only at 6.7%, Bernanke would be drewling for figures like that...


fuu's picture

Isn't it great when a plan comes together.

66Sexy's picture

QE? None of this shit works though.

Sudden Debt's picture

who knows.... maybe the third time will be the charm?

and even when it won't work, which nobody expects anyway, WE'LL ALWAYS HAVE QE4 TO LOOK AT!!



Motley Fool's picture

And hell if QE4 doesn't work, QE5 will be the charm. :)

darkhorse007's picture

And when QE5 doesn't complete it's intended fix , they will combine QE6 and QE7 and rent helicopters to drop dollars from the sky.

Iam_Silverman's picture

"QE? None of this shit works though."

Might not work for you (or anyone else on Main Street), but those record bankster bonuses sure do rely on some form of QE.

theMAXILOPEZpsycho's picture

of course it works! free money!

US Uncut's picture

Well I am pissed. Lost $700 yesterday. Got out completely. Done with the markets I don't get. And now we have a 200 point rebound? it's fucked. 

Sudden Debt's picture

Markets are down a record 11 days in a row man. A little pauze is very normal here.


But Germany just announced that the EFSF emergency fund of 440 billion will stay unchanged and WILL NOT INCREASE!!!




Robot Traders Mom's picture

If you are 'investing' anything other than play money, you are playing fiscal Russian Roulette. Buy physical metals, store them, and don't worry about them until there is a great reset.

The stock market is for suckers.

US Uncut's picture

It is money that the IRS would have taken or I put i in pre-tax into a 403(b) since I don't have enough deductions. Either way, they got the money. The only non market option is just a savings retirement that gets what .001%?!   Have silver.

WonderDawg's picture

In this kind of environment, it's about keeping what you have. I didn't coin this phrase, but I'll use it: Right now, it's not about return ON your capital, it's about return OF your capital.

US Uncut's picture

I agree now. I had that approach and then I got to thinking I was missing something so moved some back in late last year. My bad. So my new philosophy is just save, keep it from the IRS and hope inflation doesn't make the money more useless in the future since it's pretty hard to get it to grow. Seems to me that only day traders can make any money at this. the idea of holding nice stock in a nice, honest growing company long term is an old-fashioned idea these days. It's not the days of my grandfather who was a broker. 

g speed's picture

don't feel bad--you're up a bit the last 10 days

Robot Traders Mom's picture

I understand if you have money "tied" up. It is too much work for me to liquidate my 401k, and pay the IRS a penalty for early withdrawl.

That being said, i am 99.9% in junior miners. I figure this money will be meaningless anyways, and it is the most bang for my buck if they explode. If not, that is cool too. I have physical.

Good luck.

Iam_Silverman's picture

" The only non market option is just a savings retirement that gets what .001%?!"

So, you'd rather piss away your money instead of it remaining essentially flat?

How about a trip to Vegas?  Odds might be better.

Alpha Monkey's picture

"So you'd rather you piss away your money instead of letting it be eaten by inflation?"

Fixed it. 

Maybe a trip to vegas would be better.  When you play poker you at least get to look at your opponents, and the computers can't dictate your cards (as long as you don't play video poker, otherwise just stay home and continue depleting your e-trade acount).  Vegas it is!


the not so mighty maximiza's picture

Downgrades comith with QEIII

Bob's picture

Still waiting on those promised CORPORATE downgrades by S&P.  If I didn't know better, I might suspect that this is where the corporate war lords bite off the government hand that has fed them so well.   

wombats's picture

Print baby print...and watch it all spiral right down the drain into the abyss.

slaughterer's picture

To think of China during the Nixon years... and compare with now.  I am starting to feel my age.  

Sudden Debt's picture


I never really knew what he meanth by that, but later on I learned that he wasn't talking about downpaying grandma's gambling addiction but that he was talking about ..."s"...."e"...."x"....



slaughterer's picture

...when you are old:

1.) Woman does a head stand

2.)  Man dangles it in.

Sudden Debt's picture


I think these guys are talking about the procedure before the guy can dangle it in:

slaughterer's picture

Always wondered what the solution to opening the bag was.  

falak pema's picture

Think of the USa under Reagan and today and it'll make you feel older! Stick to Nixon; at least there was Watergate then to feel better about in today's USA. 

Sorry, slim consolation I know.

slaughterer's picture

Have to go over to TF Metals Report to find out why silver is sucking so bad.  

wombats's picture

sucking?  Seems more like a buying opportunity.  At least one of the PMs is on SALE!

Number 156's picture

Its like two guys who've jumped out of an airplane fighting over the only parachute on the way down.

unky's picture

Yes, like in that James Bond movie with the strong guy with the iron tooth ;- )

unky's picture

hehe yes, i exaclty meant that one.

As in the years 1960-1990 always the soviets were the bad ones they could actually come up with a new James Bond who needs to find out about some mysterious things that happened during the financial crisis.

goldfish1's picture

Riots force shop closures all over London

3.06pm: Adrian Gatton, a freelance TV producer and journalist, has emailed a few stories from south London that seem to have gone unreported today. In Norbury, two dozen shops were looted or damaged along London: jewellers, a petrol station, cash converter shops, takeaways, tool shops, tile shops, a bike shop and a pizza takeaway shop. In West Croydon, kids hijacked cars and drove them at police, and shops were attacked. In Purley Way there was repeated and massive looting of big stores in a retail park. Walworth Road was also quite badly hit.

Caviar Emptor's picture

Worse than 1981, 1985 riots. This is heavy.

But they did announe this morning that this would not affect the 2012 Olympics

goldfish1's picture

...since they plan on having 16,000 police in force tonight, I'd think the rioters stay at home for a few nights and they when everyone's back on holiday...bam.

Iam_Silverman's picture

"Worse than 1981, 1985 riots."

But, are you basing this on inflation adjusted* numbers?


* subject to revision.....

goldfish1's picture

Cameron had to come back from from vacay in Tuscany. And Parliament was called back from their holiday too...well that's just bloody wrong. These forkin commoners.

goldfish1's picture


""" Theresa May, the home secretary, is speaking to people in Clapham Junction. She called the level of looting and violence "appalling". Police will be arresting people now because people need to know their actions have consequences, she says."""


66Sexy's picture

There is certainly a media blackout.. even internet connections are effected i.e. slower. A coverup; TS is hitting the fan.

US Uncut's picture

Wait until our black flash mobs start ratcheting it up.....

LFMayor's picture

It's not nice to tease.

Iam_Silverman's picture

"Wait until our black flash mobs start ratcheting it up.."

Thank goodness we have essentially been disarmed here in the U.S.  Ownership of firearms could only exacerbate the situation.

Oh, wait.  Did I get that wrong?  I've got some really interesting hand loads I need to try out.  Ballistic gelatin being so expensive and all that.

DormRoom's picture

Buy up mining companies, because the Chinese will go on a buying binge in Sept/October to diversify out of Treasuries, into hard assets.


They'll buy up everything in Africa, and South America.

JJSF's picture

For a qe3 announcement there needs to be much more pain in the markets.  This is nothing. Remember Cramer begging for the fed the discount window? Today's china inflation numbers?  It's not ready yet. Jackson Hole me thinks.

WonderDawg's picture

I'm no economist, but I read it as a tell of exactly how panicked TPTB are. If other's read it the same way I do, announcing QEIII will have a very short term impact, after which all confidence is lost and the markets tank LLD for days in a row.

But I could be wrong. In which case, you can call me an economist.

SheepDog-One's picture

WAY to early to wheel out more monetizing, this isnt really even a drop, its still a bubble everywhere and the 100 P/E wonders werent even nicked. 

I casually talked to 5 people so far today and asked them about the markets, they all said 'Oh thats ok it always goes back up anyway even if it did drop a little bit'....calm as Hindu cows, theres no fear and panic anywhere. In the USAA+ at least.