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China Pulls The Rug From Under Europe, Halts French Bank Transactions, Makes Good On Trade War Ultimatum

Tyler Durden's picture




 

A flurry of headlines out of China suggest global macro-economic volatility may be ready to take it to the next level. We discussed last week how China's oh-so-generous offer of help to Europe was merely a veiled threat playing US against Europe in a game of who-gets-the-funding. Well, tonight, it seems, they are making good on some of those threats. Aggravated by EU's lack of market economy recognition, they pull trading lines with French banks, express concern at the EUR's safety (preferring US Treasuries), and indicate a clear preference for bonds over stocks - all the while warning of growing trade tensions - consider the sabre-rattled.

Initial comments from Commerce Minister Shen via Bloomberg:

*CHINA DISAPPOINTED EU HASN'T RECOGNIZED MARKET ECONOMY STATUS

*CHINA MARKET ECONOMY STATUS IS POLITICAL DECISION, SHEN SAYS

*CHINA MARKET ECONOMY STATUS NOT TECHNICAL ISSUE, SHEN SAYS

*CHINA'S HELP TO EUROPE, MARKET STATUS HAVE NO DIRECT CONNECTION

was quickly followed by the 'threat/promise':

*MOFCOM'S SHEN: EU DEBT CRISIS MAY RAISE CHINA TRADE FRICTION

*CHINA MOFCOM IS CONDUCTING REVIEW OF NESTLE-HSU FU CHI DEAL

and then Reuters reports:

A big market-making state bank in China's onshore foreign exchange market has stopped foreign exchange forwards and swaps trading with several European banks due to the unfolding debt crisis in Europe, two sources told Reuters on Tuesday.

 

The European banks include French lenders Societe Generale , Credit Agricole and BNP Paribas.

 

"Apart from spot trading, all swaps and forwards trading (with the European banks) have been stopped," one source who is familiar with the matter told Reuters.

 And the piece-de-resistance of the night was, again from Reuters:

China, the largest foreign holder of U.S. government debt, will keep buying U.S. Treasuries, the official People's Daily, the ruling Communist Party's mouthpiece reported on Tuesday, citing government researchers.

 

In an article about the reasons for China's increased purchase of U.S. Treasuries, the newspaper cited Yan Xiaona, a researcher with the Chinese Academy of Social Sciences, as saying that the dollar "is relatively safer than the euro" because of the unfolding sovereign debt crisis in Europe.

Furthermore, as if he had just read our earlier debt vs equity post: 

Wang Chaocai, a Ministry of Finance researcher, was quoted as saying that "what else we can buy if not U.S. Treasuries? It's more risky to buy into equities."

Lastly, for feces and giggles, China Daily just had to throw in the military element with the tongue in cheeky "Backlash expected if US seals arms deal"...

It seems that China did not get the answer they wanted from the Europeans and just as we said last week, swung back in favor of the US - TSYs as opposed to stocks. China 3 - Europe 0 - US 1 is the approximate score in this first round perhaps.

 

UPDATE: The 'game' continues into the night as China's Xinhua News cites absolutely noone when it claims Fitch's bearish stance on China's banking industry has prompted suspicions of a 'conspiracy'. And remember Fitch is French-owned.

With Europe perceiving Fitch as “purposely targeting” the region, the ratings company needs to find a new candidate to add to the “blacklist” to show its fairness, the report said, citing Wu Jingmei, head of Renmin University of China’s credit rating research center.

and then goes on to comment (via Bloomberg)

*U.S., EU SHOULD 'DITCH' PROTECTIONIST MEASURES: XINHUA

*U.S., EU SHOULD 'OPEN THEIR ARMS' TO CHINESE INVESTMENT: XINHUA

and a seemingly well-time rebuttal from Ambassador Locke:

*LOCKE SAYS CHINA BUSINESS CLIMATE CAUSING `GROWING FRUSTRATION'

*LOCKE SAYS CHINA POLICIES PLANTING `DOUBT' IN INVESTORS' MINDS

*LOCKE SAYS CHINA SHOULD LET CURRENCY APPRECIATE `MORE RAPIDLY'

*CHINA POLICY RAISES CONCERN IN FINANCIAL SERVICES SECTOR: LOCKE

We have lost score now but this rhetoric seems to be gaining pace...

 

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Mon, 09/19/2011 - 23:23 | 1687338 Stuart
Stuart's picture

buy gold!

Mon, 09/19/2011 - 23:25 | 1687349 dlmaniac
dlmaniac's picture

Pressure is on ECB to join the Operation Global QE to Infinity.

Mon, 09/19/2011 - 23:29 | 1687358 Ahmeexnal
Ahmeexnal's picture

+100TRILLION CHINA

 

Seems China has demolished the Maginot Line!

Mon, 09/19/2011 - 23:37 | 1687407 markmotive
markmotive's picture

Looks like China has the balls to follow through on their threats.

Unfortunately, China is f-cked if Europe disintegrates. Europe is China's biggest export market.

 

 

 

Mon, 09/19/2011 - 23:44 | 1687431 nope-1004
nope-1004's picture

If Netflix gave you the best returns last year, but the future looked like hell, would you stay resolute?  Or bail?

Seems to me all the world banks have been notified of the EU going down and bit by bit we get fed info on the various lines drawn in the sand.

 

Tue, 09/20/2011 - 00:23 | 1687595 Fish Gone Bad
Fish Gone Bad's picture

China is such a second rate country.  Up until the Opium Wars I & II, China was all that, now? Now China makes its military equipment with the same care they make everything else.  Total crap.  As far as money goes, everyone knows that if and when the ponzi breaks, China will get fucked hard.  So China, bring it on.  Loser.

Tue, 09/20/2011 - 00:29 | 1687605 Botox4U2
Botox4U2's picture

Now China makes its military equipment with the same care they make everything else.  Total crap.

Does this mean their missles are going to miss Wall Street and Washington and hit your house instead?  Be afraid my friend.  ;-))))

Tue, 09/20/2011 - 01:34 | 1687708 chump666
chump666's picture

hahaha that was good.

Tue, 09/20/2011 - 02:36 | 1687741 TruthInSunshine
TruthInSunshine's picture

Many have been warning others that we're in the foothills of a depression, that this trend will accelerate no matter what governments and/or The Bernank-Trichet-BOE-BOJ-IMF-G20-EU-PBOC does/doesn't do, and that the macroeconomic & technological changes that have taken place and become entrenched over the last 40 years (roughly since the time the U.S. went off the gold standard - officially - coincidentally), and which have allowed the FIRE economy, and particularly the investment banking/derivatives-CDS-CDO/CMBS-RMBS/the Wall Street-401(k)-PhantomWealth Doomsday Machine the most powerful controller of political puppets/stooges, and that gave rise to the fake, purely fiatski-credit based crack hit expansion of the last 40 years possible, is about to come crashing down.

Am I saying this is going to happen soon, rather than years from now? Yes.

It's happening right now. We're witnessing it.

The causes?

1)  Job losses. The Bernank & his European & Asian counterparts can't print jobs, nor can the political morons in the U.S., EU, or Asian Nations, assuming they wanted to (I doubt The Bernank cares about this issue, in reality, but I digress).

2)  The CONfidence in institutions and political/business leaders (i.e. actors; e.g. Buffet, Bernanke, Nojobama, Boner) has been lost; Fractional Reserve Banking Ponzi Schemes, where money equals debt and debt equals money, fiat is printed out of thin air, and where the entire illusion of economic growth depends on the exponential growth in the issuance and absorbtion of more and more debt, depend on CONfidence.

3)  Bernank's Virtuous Circle of supporting the Criminal Enterprise that are TBTF banks & his masters on Wall Street via fleecing of taxpayers is leading to surging inflation of a nature and duration that significantly crimps consumption, which exacerbates the jobs crisis (see 1 above).

4) Government deficit spending & accumulated debts, with annual deficits in most nations now greater than total debts of just 15 or 20 years ago, and the interest paid on the debt annually, alone, greater than the total debts of some countries as of just 30 or 35 years ago.

5) Government absorbing risk taking losses by alleged (alleged is the key word) TBTF entities, courtesy of a limitless, taxpayer backed bailout program.

6) Moral/Social Order is breaking down. When average people wake up to the fact that they're being so royally screwed over, they join in the screwing over (e.g. stop paying their mortgages on their underwater homes, game the system in many other ways).

 

We're all going to find out just how much spending by consumers and small businesses (and medium and large ones while we're at it) is "discretionary" vs "non-discretionary," and how much time lapses before the long knives are pulled out by the masses in response to government largess and Central Bankster Criminality.

We're in real GDP contraction (throw the ridiculous official government claims re GDP right into the toilet and flush accordingly) in every developed nation right now, and also in many emerging ones. To the extent that even de minimus positive GDP growth is being reported, it is compliments of surging inflation, which gets that nominal price of goods/services purchased up even though real consumption has fallen.

This is the beginning of an epic journey. This is the literal start of the quiet revolution that Gonzalo Lira wrote so eloquently about 18 months ago, where the average, honest, always-played-by-the-rules, productive people start to say "we're not playing their game anymore - we won't and can't do it," and the system breaks down. It will only take 5% of the productive class to opt out, silently, for the system to have convulsions. When 15% do, or 25%, let alone more, it melts down faster than a snowball at Fukushima Daiichi.

May the road rise to meet you,
May the wind be always at your back,
May the sun shine warm upon your face,
May the rains fall soft upon your fields,
And, until we meet again,
May God hold you in the hollow of His hand.

Tue, 09/20/2011 - 02:46 | 1687781 Cliff Claven Cheers
Cliff Claven Cheers's picture

Fuck it!

Tue, 09/20/2011 - 03:31 | 1687817 Mauibrad
Mauibrad's picture

Don't leave this out:  

US. to announce 'major trade enforcement action' against China on Tuesday - Reuters 

Tue, 09/20/2011 - 04:08 | 1687852 John Bigboote
John Bigboote's picture

Opt out and undermine, bitchez!

Tue, 09/20/2011 - 08:07 | 1688082 CH1
CH1's picture

+100

Tue, 09/20/2011 - 04:40 | 1687873 lewy14
lewy14's picture

And right now, at this hour... Asia was up. Europe is up. Currencies stable. The board is green. Party on.

Tue, 09/20/2011 - 07:29 | 1687996 Mentaliusanything
Mentaliusanything's picture

@Botox4U2

now be a little careful here. They are about to give you a huge lesson in perfect time accuracy. Even the Swiss admit that it is over and just buy the movements and add 1,000%.

I know they can put a Rocket up your Anus. China makes some of the most precise instruments (electronic and mechanical) in the whole World. You just see and hear what your told to see and Hear.  "America Fuck yeah"- ring a Bell

Remember "made in Japan in the 60's" Total crap, toys, "last a day crap" 

And as I posted the one below me said what I was really wanting to say ...., You can't Fucken afford the high end of what they can make. Believe me It will smack you head around. Be informed not bigotted 

http://www.tractionink.com/watch_wiki/index.php?title=Tianjin_Seagull

Twin  tourbillon's-No one makes them better or more accurate. I fact who in the Hell can make a profitable mechanical watch any more with the beautiful movements the Chinese turn out. 1,339,724,852 minds who hope for a better future sure say "watch this space" 

All I ask is you expand your mind above your navel - doing so will make your whole World distort

Tue, 09/20/2011 - 08:23 | 1688138 trav7777
trav7777's picture

Yes, yes, China is superior in every way...it's just that it's invisible and we can never see it

Tue, 09/20/2011 - 00:30 | 1687610 laomei
laomei's picture

China actually makes some seriously high quality stuff when it needs to. The only reason you don't see any of it is mainly due to it being higer than the demanded price point set by us importers.  military equipment here is all top notch stuff.

Tue, 09/20/2011 - 01:10 | 1687672 Spirit Of Truth
Spirit Of Truth's picture

From http://in.reuters.com/article/2011/09/19/idINIndia-59435820110919

 

WASHINGTON | Tue Sep 20, 2011 5:15am IST 

US to announce new China trade enforcement action

 

(Reuters) - U.S. trade officials will announce a major trade enforcement action against China on Tuesday, according to a U.S. Trade Representative's office advisory obtained from a business group.

 

The advisory, which was distributed to media on a not-for-publication basis, said U.S. Trade Representative Ron Kirk "will hold a press conference to announce a major trade enforcement action against China."

The release did not provide any additional details.

(Reporting by Doug Palmer; Editing by Peter Cooney)

 

Tue, 09/20/2011 - 01:33 | 1687705 chump666
chump666's picture

China is panicking because it's slowing down hard with inflation.  Global tensions just went up 10 notches.  How to trade this?  Fed pumps the market, good for two days, then short equities on USD being bid.

We get a protectionism, repatriation trade... kinda feels like that is brewing. 

Tue, 09/20/2011 - 02:18 | 1687750 chump666
chump666's picture

...alright just went up another 5 notches. 

Rating agencies are going to hammer China now. Fed meltup, two sessions max.  Then all hell breaks loose.  EZ/China/US etc.  Major sell on stocks end week.

gold will be bid though.

 

Tue, 09/20/2011 - 01:19 | 1687688 Simon Endean
Simon Endean's picture

Yeah, but an hour later, you want to get shot again.

Tue, 09/20/2011 - 08:10 | 1688093 CH1
CH1's picture

LOL... that was a cute.

Tue, 09/20/2011 - 01:28 | 1687699 billsykes
billsykes's picture

like their uav's?

Tue, 09/20/2011 - 06:41 | 1687964 BandGap
BandGap's picture

You have no idea how wrong you are.  China's "top notch" stuff is available in very small quantities and oftentimes this is what is showcased to the world.  Their military hardware, for the most part, is junk.

Simple materials, like 304 or 316 steel, has so many "varieties" in China as to be laughable.  When the baseline, high volume, materials of construction varies widely in the quality the end product capabilities will do so, as well.

Junk.

Tue, 09/20/2011 - 04:49 | 1687864 Popo
Popo's picture

You're looking at China's military all wrong.   Yes,  US/NATO militaries put theirs to shame.  No argument there.

But if you want to compare militaries, you need to compare China's to everyone else's in Central Asia and Southeast Asia.   Tibet sure wasn't impressed with Western military resistance to Chinese expansion.

Chinese military expansion is coming, one way or another.  (And I mean geographic expansion).  And the West will have little to do with it.  

Western militaries have the clear homefield advantage.  But that advantage is much, much less clear (both historically, and in current analysis) in a war located in near proximity to China.  

Take the following scenarios:  China takes Laos and Thailand -- makes rapid treaties with Singapore to ensure regional financial stability (with the same veiled threats that Germans made to Swiss banks -- play ball, or join your neighbors in occupation).  

US response?  What are they going to do, nuke China?  Fight a land-war in SE Asia?  LOL.  Give me a break.  China would own, very very quickly.   And China would gain Andaman / Indian Ocean ports -- something they need to increase regional hegemony and put the screws on India.

There are dozens of other plausible scenarios for Chinese expansion.   Particularly in Central Asia where China has the ability to mobilize far more easily than the US.  (And where oil provides infinite temptation).

The West has the option of 3 modes of warfare in the 21st century:   Nation building in militarily weak states,  proxy warfare ... and direct full-throttle confrontation (Armageddon).    

If you think rapid, Blitzkrieg-like Chinese regional expansion is something the West has the capacity to confront, you are flat wrong.   There are at least a dozen scenarios where we would get our asses kicked.

Consider also Chinese demographics:  They have MILLIONS of men without wives (and who will never find wives because there are simply not enough women).  A nation cannot exist with destabilizing factors like millions of angry single men -- at the bottom of the social totem.  Right now they are staving off social unrest through unsustainable ponzi economics (which put ours to shame).  When the house of cards falls -- and it will -- social unrest in China is going to take off.  People talk about social unrest in the West -- but the two are not comparable.  In China's case social unrest is going to involve tens of millions of people (not a tens of thousands) -- people who have *nothing* to lose.   Think the Chinese won't want a major war?  They'll *need* one.  

War is absolutely coming.

Tue, 09/20/2011 - 04:49 | 1687883 Oh regional Indian
Oh regional Indian's picture

Excellent re-cap Popo

ORI

Tue, 09/20/2011 - 05:10 | 1687898 myne
myne's picture

One point.

North Korea will likely be first.

They might like Kim, but it's the best way to start this process.

1) No one likes NK

2) They will sell it as a 'liberation' movement.

3) They're far more likely to win the support of the NK people.

Tue, 09/20/2011 - 06:43 | 1687957 Popo
Popo's picture

NK would make an excellent trial run / "Austria" move...  Except for the nukes.   Although clearly,  an aligned (merged) Chinese / Nork military would certainly set the stage for something big...

As far as "trial runs" Laos could be first.  It's "rape of Belgium" material:  Militarily insignificant -- but sets the ball rolling.  And no one would give a shit.  Laos is already deeply within the Chinese sphere of influence.  

 

Tue, 09/20/2011 - 07:14 | 1687986 laomei
laomei's picture

Lookin' at it pretty backwards here... China's not the nazis.  the us is a lot closer to that comparison if you want to make it.

Tue, 09/20/2011 - 08:31 | 1688098 Popo
Popo's picture

I disagree -- but not at all because I'm defending US FP. We're a military empire, indeed. But our expansion is purely oil focused to maintain the petrodollar. China's expansionism will be far more akin to Germany's rapid regional land grab.

Secondly, China's position as an industrial powerhouse standing on shaky sociopolitical footing, and playing imperial "catch up" makes them very analogous to Germany at that time.

America, as the fading empire with strong naval power, tremendous reach -- and imperial overstretch -- is far more analogous to the Brits of the era IMHO.

Of course, neither match is perfect.

Tue, 09/20/2011 - 08:58 | 1688264 Bobbyrib
Bobbyrib's picture

How can no one mention Taiwan? I think the first move will be to take Taiwan from under our noses. Personally, I wouldn't care too much. There is no guarantee that the Taiwanese won't turn into the younger generations of South Korean ingrates (enjoy our security and shit on us every chance they get).

Tue, 09/20/2011 - 10:18 | 1688570 Almost Solvent
Almost Solvent's picture

Would not India be involved?

Or would they simply become like Italy was to Germany?

Tue, 09/20/2011 - 18:14 | 1690285 V10
V10's picture

They want Taiwan back under the thumb, I don't think anyone has any delusions about that.

Two things off the top of my mind as to why Taiwan wouldn't be the first to be swallowed is that...

1) It's a much more likely to trigger an overt response of some kind from the West because of security commitments and investment of interests; it's a strategically important port of call, and also not some economic backwater.  Better to do trial runs on comparatively insignificant territory.

2) China wants it intact and prosperous, much like Hong Kong.  The best plan would be to convince the Taiwanese to rejoin the mainland 'voluntarily' (with some generous assurances of autonomy), and have them secede from Western defense treaties.  With several other conquests ringing them in and several recent examples of Western capitulation, Taiwan sees Chinese hegemony as the unavoidable future in the Asia-Pacific.  They hold their nose and accept reunification on the best terms they can bargain for, as opposed to being outright conquered.  Meanwhile, the West gets some (weak) face-saving cover that they haven't abandoned their allies, since they 'chose' to join the new Chinese empire.

Tue, 09/20/2011 - 11:05 | 1688784 laomei
laomei's picture

except what you are doing here is comparing a theoretical chinese future with a very real us past/present/and presumable future.  kind of a retarded argument. 

Tue, 09/20/2011 - 06:46 | 1687968 BandGap
BandGap's picture

There is nothing in NK worth having.  It would be an effort with little to gain.  I'm thinking they expand towards Laos/Cambodia.  They already are mixing it up with Viet Nam. NK would also invoke some SK response.

Tue, 09/20/2011 - 07:09 | 1687981 tarsubil
tarsubil's picture

NK is a box full of starving roaches. I don't think China wants to break it open.

Tue, 09/20/2011 - 07:13 | 1687984 j0nx
j0nx's picture

HAHA that made me spit oatmeal on my monitor. Perfect analogy!

Tue, 09/20/2011 - 06:33 | 1687958 Crash N. Burn
Crash N. Burn's picture

  As the lifeblood of any modern military is oil (and China imports), it would make life really interesting for any chinese oil supplier who thought of turniing off the tap and was close geographically (but not politically). Kazakhstan, Indonesia, and Malaysia may have a future choice (or not).

Tue, 09/20/2011 - 07:11 | 1687983 j0nx
j0nx's picture

Nice, but nothing I haven't said 1000 times in conversations like this myself. Anyone who follows history and human nature knows exactly what's coming.

Tue, 09/20/2011 - 07:20 | 1687991 Baptiste Say
Baptiste Say's picture

Lay off the 'Call of Duty' video games you fuckign idiot.

 

China actually BUYS it's resources when it wishes to acquire more, unlike your depraved shithold of a nation it doesn't invade every single country from ones as wealthy as Iraq to ones as tiny, dimunitive and poor as Haiti every couple years whenever it feels the empire is slipping or the drug smuggling routes at threatened.

 

China has invaded only 2 countries in the last 100 years, Tibet and briefly Vietnam. USA has invaded or interefered in <url="http://killinghope.org/">at least 50</url>. Not only is Chinese foreign policy peaceful and non intervenionist but:

1. It has nothing to gain by invading other countries, sending it's youth to die, burning it's money (see USA's experience in the Iraq war for more).

2. It needn't invade other countries anyway to gain power, you fuckhead Americans and Europeans are doing enough to self destruct as it is.

 

Tue, 09/20/2011 - 09:06 | 1688299 Bobbyrib
Bobbyrib's picture

China is engaging in economic imperialism throughout the world (South America and Africa). While it may not be physically invading countries, it is making deals for resources to bailout countries even more politically corrupt than the US.

Tue, 09/20/2011 - 11:35 | 1688943 AnAnonymous
AnAnonymous's picture

China is engaging in economic imperialism throughout the world (South America and Africa).

:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

Yep, and they are lagging behind the US and Europe in the same endeavour.

US world order. Nobody can match the US and its trusted lieutenants in these games. Or it would not be a US world order.

Tue, 09/20/2011 - 08:29 | 1688157 Are you kidding
Are you kidding's picture

Well hot damn!  We need a war too Popo.  And we need it more than you do.  We need to erase all that debt we own you.

BTW...you're going to lose.  Nobody wants China running the world...they WILL stab you in the back.  We may be assholes but we're easier to live with than just about anyone else capable of pulling off world leadership.  Do you hear all the complaints about America?  They know they wouldn't even have that if China was in charge.  It's all talk.

Mon, 09/19/2011 - 23:53 | 1687438 Ahmeexnal
Ahmeexnal's picture

No. China waited patiently.  China knows the eurozone was about to betray them.

Europeean market is now expendable. 

Flight to CHF will start again.

Shangai stock exchange is already soaring with the news.

 

 

Mon, 09/19/2011 - 23:53 | 1687475 DoChenRollingBearing
DoChenRollingBearing's picture

I agree, except re the CHF.  They will likely be buying more gold and resources.  They have not invested their surpluses well.  They are probably wising up REAL FAST.

Good insight re Eurozone ready to betray China, and that Europe is expendable in China's eyes.  So, green for all that.

Tue, 09/20/2011 - 00:04 | 1687496 Ahmeexnal
Ahmeexnal's picture

DoChen,

China knows their oil deals with Mr. Q are toast and Sarko and Cameron are laughing at them.  China will now snap Sarko's and Cameron's neck like a twig.

China might not buy much CHF, but forex traders and people who still have faith in fiat money will buy CHF and USD with both hands.  SNB will have no option but to let the euro sink alone.

Time seems ripe to open long stay hotels across the eurozone and demand payment in silver!

Tue, 09/20/2011 - 00:18 | 1687574 DeadFred
DeadFred's picture

Sometime I hope someone gives a good scenario on how the CHF peg plays out. Most agree it can't succeed but I haven't been able grok the end game. If enough treders pile into the franc it will have to unpeg, but the traders then have a position in a diluted currency, how much will it be worth after they print umpteen trillion francs to keep it pegged.

Tue, 09/20/2011 - 04:29 | 1687863 outsidertrader
outsidertrader's picture

Here's how it will play out. The SNB will succeed in capping the CHF against the euro because 1. Even at the capped level the Swiss franc is grossly overvalued. 2. The SNB has infinite firepower. They can print as many CHF as they want. 3. Switzerland is suffering from deflation when measured on the European harmonised data, so is in an ideal situation to print money and reflate. and 4. There are so many would be FX traders who don't get it. This is a once in a generation event and the SNB do not take such action lightly. The last time they took similar action in 1978 vs the Dmark, the policy worked. The CHF hung around the cap for a while and then steadily weakened. Critics of that episode point out that Swiss inflation rose over the following few years to above 7%. What the critics don't point out is that in the same cycle, US inflation peaked at 14.8% and UK inflation reached 21.9%. I have traded interest rates and FX professionally for over 30 years (not that that is necessarily a recommendation! :)) and I believe that the SNB will succeed.

Tue, 09/20/2011 - 00:19 | 1687577 DoChenRollingBearing
DoChenRollingBearing's picture

Hey, the Euro goes down, the wife and I: ANDIAMO IN ITALIA next year!  Be nice to go once in a lifetime without being so expensive...

I'll keep an eye out re your prediction of China snapping Sarko's and Cameron's necks, LOL...

I still think the Swiss will inflate rather than watch their exporters die because of a weak Euro.  I'll stick to gold.

Tue, 09/20/2011 - 01:00 | 1687654 Ahmeexnal
Ahmeexnal's picture

Seems like the UK is about to snap by it's own:

http://www.independent.co.uk/news/uk/politics/jobcentres-to-send-poor-an...

 

Tens of thousands of benefits claimants will be referred to food banks by the Government, which is worried that many Britons face a stark choice: starvation or feeding themselves by begging or stealing.

From tomorrow, jobcentres in England and Wales will refer the needy to charity-run food banks that will give them a food parcel. It is the first time in living memory that hungry people will have been passed on to charities in this way.

 

The same will soon happen with food stamp recipients in the US.

Tue, 09/20/2011 - 03:23 | 1687814 JOYFUL
JOYFUL's picture

Deals with GDaff are simmering on the back burner.

The laughter you are hearing is the cackle of the damned from within the castle, as the Masque of the Red Death winds down. Don't believe everything, er, that should be Anything, you read in the MSM.  His gold is safe, his African Gold Dinar allies are attentive to his needs, and best of all, time is on His side, not Nato's.

http://libya360.wordpress.com/2011/09/19/libyan-army-captures-nato-forces/

In the age old tradition, the Chinese have allowed the enemy to orchestrate it's own destruction. No necks will need be broken in the advance to the new reserve currency paradigm. Banksters just hang themselves! http://www.spokesman.com/stories/1996/jul/12/bankers-heir-hangs-himself/  &  http://www.thisismoney.co.uk/money/news/article-1642540/Credit-crunch-ba...

Politicos, being spineless, need instead be squished then left to dry out in the sun.

City of London is under a three pronged siege, Chavez, China, and the Libyan Lion...it's the new "GOLDen Triangle...

Cameron and the CIA puppet princeling are roadkill. The failed to follow the sage advice of RoSpa...never wander out into traffic without Mommy!  http://www.tuftyclub.org.uk/

 

Tue, 09/20/2011 - 06:22 | 1687949 Herman Strandsc...
Herman Strandschnecke's picture

Tufty should have left his mum on the pavement. She'd probably still be with us today.

Tue, 09/20/2011 - 06:44 | 1687967 BorisTheBlade
BorisTheBlade's picture

China will be funding Europe, just not the "old" one: China backs Belarus with US$1b loan http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/115...

Mon, 09/19/2011 - 23:51 | 1687463 RmcAZ
RmcAZ's picture

1. Consume products that would have been exported.

2. Let currency free float and allow direct investment from abroad.

3. ???

4. Profit.

Tue, 09/20/2011 - 01:29 | 1687700 slewie the pi-rat
slewie the pi-rat's picture

my first thoughts, too

other thoughts are coming to me, but i'm not sure what this actually means to the chinese:

  • *CHINA DISAPPOINTED EU HASN'T RECOGNIZED MARKET ECONOMY STATUS
  • *CHINA MARKET ECONOMY STATUS IS POLITICAL DECISION, SHEN SAYS
  • *CHINA MARKET ECONOMY STATUS NOT TECHNICAL ISSUE, SHEN SAYS
  • *CHINA'S HELP TO EUROPE, MARKET STATUS HAVE NO DIRECT CONNECTION

given moody's downgrade of the french banks last week, i also took note of john mauldin's analysis and take on goldSeek, yest { Twist and Shout? }

Let’s look at just one country. French banks are leveraged 4 times total French GDP. Not their private capital, mind you, but the entire county’s economic output!....Essentially, French banks are perilously close to being too big for France to save with only modest haircuts on their sovereign debt. If they were forced to take what will soon be mark-to-market numbers, they would be insolvent.   (end paste)

maybe it's b/c i've been playing poker, but given

  • the interests of the int'l central banksters,
  • the SNB pegging the euro,
  • the 90-day "swaps" to give the EU more time

w/ this chinese emphasis on the political, i can't help wondering if this is actually aimed at germany's role in the decisionz here, b/c  merkel's banks may be light on capital, too, as tyler put up a few days ago, to the tune of:  [Frankfurter Allgemeine: "German Banks Need $175 Billion More In Capital"  b/c if those french banks go down, what tf does germany actually gain by not "sharing the wealth" w/ greece?

is this all an "act" to put the screws to germany in it's political decision, kinda like the show we got prior to the august 2 debt ceiling bill, votes, and supercommittee formation?  is china trying to give a "message" to germany about not underestimating the ramifications of it's vote?

or, is the feces gonna hit the  giggling fan tomorrow, the 20th?  or will greece stall for the "referendum"?  if greece stalls, then germany gets to vote, and if this "strategy" works, the fuking banksters are gonna laugh all the way to their vaults!

either way is ok w/ me, but i'd prefer to see the phoney-baloney "capital" go right up in smoke and out the chimney, where it belongs...

we shall see, eh? 

Mon, 09/19/2011 - 23:59 | 1687498 candyman
candyman's picture

PBB where are you? Hello, Hello, must have hung up.

Tue, 09/20/2011 - 00:10 | 1687544 lolmao500
lolmao500's picture

So what. Let's say China, the US and Europe collapsed all at once.

Who you think would be the first one back on it's feets? My bet would be China due to their political system.

Democracies don't work well in crisis.

Tue, 09/20/2011 - 00:20 | 1687582 DeadFred
DeadFred's picture

Especially if they prepared for it because they knew they were going to be pulling the trigger.

Tue, 09/20/2011 - 10:22 | 1688593 Almost Solvent
Almost Solvent's picture

Plus China has all the industrial works - the US would take forever to retool their industrial base

Tue, 09/20/2011 - 00:22 | 1687590 Cardinal Fang
Cardinal Fang's picture

 A billion and a half people in crisis is a scary thought and no amount of any type of government is going to control that mob.

Tue, 09/20/2011 - 00:35 | 1687613 lolmao500
lolmao500's picture

True dat. But still, you think 400 million europeans and 300 million americans is better? Especially when America and Europe are that internally divided? China isn't much internally divided.

The US is as divided as just before the last civil war.

Europe well it's split between the euro shills, the nationalists and the SHITLOAD of immigrants who don't want to integrate and the various group that are just waiting for something to go violent on them.

China have divisions, sure, but not on the level of ours.

 

Not to mention, the Chinese are not ``spoiled`` that much yet or entitled. WE ARE. A LOT. Chinese are used to having it rough. Us? Mwhahahahaha

A bunch of angry entitled people are a dangerous mob.

Tue, 09/20/2011 - 01:28 | 1687698 Western
Western's picture

You're a fool.

China has several separatist races and states within it. They're not huge threats, but your tirade ignored that fact and I voted you down.

Tue, 09/20/2011 - 01:32 | 1687701 chindit13
chindit13's picture

The West has something China lacks:  marrying age women.

Over the next decade China will have a gender gap of something north of 30 million.  That means at least thirty million hormone filled boys are not only not going to find a date to the Senior Prom, they aren't going to find a bride.  Already Chinese "entrepreneurs" are "exporting" women and young girls from border areas in neighboring countries to try to fill the need.  Where I am they use the Chloroform Extraction Method.

Unless China's PR firms get started right now with their "To Bugger Thy Comrade is Glorious" campaign, China is going to have problems burning off all that testosterone.  Maybe they have already begun.  Though I'm only a novice in the lingo, I've been told the direct translation of the name of that empty city Ordos is "San Francisco".

Tue, 09/20/2011 - 02:02 | 1687736 TruthInSunshine
TruthInSunshine's picture

The EUR is toast, as is the Eurozone.

All the King's Horses & All The King's Men will never put Humpty Dumpty Euro back together again.

The single currency’s true fatal flaw - FT MARKET COMMENTARY

http://www.ft.com/cms/s/0/62a127a6-e2aa-11e0-897a-00144feabdc0.html#ixzz...

If you want to understand why the euro is in such trouble forget, for a moment, debt and sovereign bonds – and take a look at the bank notes. The images on euro notes are of imaginary buildings. While national currencies typically feature real people and places – George Washington on the dollar bill, the Bolshoi theatre on the Russian rouble – European identity is too fragile for that. Selecting a place or a hero associated with one country would have been too controversial. So the European authorities chose vague images that represented everywhere and nowhere.

Tue, 09/20/2011 - 03:53 | 1687840 DaBernank
DaBernank's picture

B..b..but wait, the € is freegold.

Except for the bureaucrats, "European" unity is as close to being reality in the minds of the people as "Asian"unity that would include China, Korea, Japan, India and SEAsia. Nationalism, it's what's for dinner.

What happens to the ECB when we all have our Marks, Francs, Lira, Schillings, Guilder, and Drachma back?

Tue, 09/20/2011 - 02:10 | 1687746 FinalCollapse
FinalCollapse's picture

Are you crazy? Most of the Chinese woman are fed up with their drinking guys, and would do anything to get out and marry Western guy. Just do your homework - you will not believe the quantity and these days incredible quality of woman available to marry. China is the best place to find a quality woman. There are tens of millions to chose from.

Tue, 09/20/2011 - 02:19 | 1687752 lolmao500
lolmao500's picture

Yeah well that's 30 million soldiers.

Tue, 09/20/2011 - 05:19 | 1687902 AnAnonymous
AnAnonymous's picture

Or simply 30 million men who wont marry.

US citizens are hooked on power. They know that if they lose their world first rank status, all their ponzi economics and the priviledges they draw from it are gone. They fear that the only rival left china takes that position from them.

The simple solution that these guys will simply not marry is left out to favour scenarii of turmoil and chaos...

Tue, 09/20/2011 - 05:25 | 1687909 AnAnonymous
AnAnonymous's picture

Yeah well that's 30 million soldiers.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Ah, one remark. Actually, if they join the military, they will probably marry. Because accross history, the soldier status, military service was quite required to access marriage. The US, as a country based on the group, is fully using that tactics to get people joining the military, US women are proner to marry a male who dedicates his life to 'defending' the group (a US euphemism to mean aggressing and plundering foreigners)

Tue, 09/20/2011 - 02:21 | 1687753 AmCockerSpaniel
AmCockerSpaniel's picture

War takes care of issues like the China gender gap. In the USA, the Civil War of 1861~1865 resulted in the practice of polygamy by the Mormons.

Tue, 09/20/2011 - 03:11 | 1687808 DosZap
DosZap's picture

chindit,@

The West has something China lacks:  marrying age women.

Well if they had not murdered the female babies aborted them, sold them on main st mkts for food,and aphrodisiacs (no shit), they might have enough women.

But, in lieu of marriage,and children, testosterone goes hand and hand with the War machine..............fight or f*&^ most young men like to do both,and like the radical Islamists, they are brain washed BY the state from birth.

Tue, 09/20/2011 - 04:56 | 1687888 chindit13
chindit13's picture

One Child Policy and the cultural preference for male heirs...the Law of Unintended Consequences.

Frankly, I have no idea how they are going to solve it or minimize its effects on social stability.  Some here suggest war, though I might not (want to) go that far.  Major disruptions within society, however, are all but guaranteed.  I noted something which I have already seen, which is an horrific increase in human trafficking where I am.  I have read of similar occurences in northern Vietnam border areas.

India has a similar problem brewing re excess males, as does South Korea.

Tue, 09/20/2011 - 05:22 | 1687906 AnAnonymous
AnAnonymous's picture

Frankly, I have no idea how they are going to solve it or minimize its effects on social stability.

Major disruptions within society, however, are all but guaranteed.

/////////////////////////////////////////////////////////////////

Really? And from what is the source of that certainty?

30 millions men out of how many?

Any reference to other populations?

Every man or woman no marry and marriage is not a guarantee against social unrest? Would not these guys be more prone to unrest if they cant feed their family?

US cheap propaganda as usual.

Tue, 09/20/2011 - 05:28 | 1687913 AnAnonymous
AnAnonymous's picture

But, in lieu of marriage,and children, testosterone goes hand and hand with the War machine..............fight or f*&^ most young men like to do both,and like the radical Islamists, they are brain washed BY the state from birth.

::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

Utter bollocks. Actually, the soldier status is a bonus to marry a woman. If indeed these guys join the military, they will more likely increase their chance of marrying.

US cheap propaganda trying to confuse the effects of primogeniture with the army stuff...

Cheap as usual.

Tue, 09/20/2011 - 09:54 | 1688481 ReactionToClose...
ReactionToClosedMinds's picture

ANANonymous ... let the record state ... Amerika stinks ... but take your anit-amerikan propaganda, liberalize yourself and peddle your 'bolsheviks-made only-a-few-mistakes' nonsense elsewhere.  I, for one, do not want to live where you are in political control .... I'll take Barney Frank over you any day  

Tue, 09/20/2011 - 11:39 | 1688962 AnAnonymous
AnAnonymous's picture

Bolshevik?

Facts have nothing to do with anything by themselves. Facts are not bolshevik.

US citizens and their cheap propaganda. Even with their talent to monetize anything, it is so cheap they could not pay back their debt with it.

As to living somewhere on this Earth, one can not escape the US world order.

The US acts, the others react.

US world order.

Tue, 09/20/2011 - 04:57 | 1687890 eaglefalcon
eaglefalcon's picture

I think you are talking about "ethyl ether extraction method", which tends to knock someone out temporarily.  Chloroform can easily kill someone 

Tue, 09/20/2011 - 08:30 | 1688159 trav7777
trav7777's picture

don't confuse marrying age with "marriageable"...western women are about fucking useless.  They can have them and they'll bust their balls and bring those chinks to their knees.  Plus, western women don't like short dicks, so these slopes are probably SOL

Tue, 09/20/2011 - 06:55 | 1687973 BandGap
BandGap's picture

Total bullshit. lol.  You know not of what you speak.

Tue, 09/20/2011 - 00:23 | 1687592 Cardinal Fang
Cardinal Fang's picture

double post, my apologies...

Tue, 09/20/2011 - 00:27 | 1687602 Newsboy
Newsboy's picture

Look what China did in it's last crisis. Something like 100,000,000 Chinese died over the years of the Cultural Revolution.

India is who would bounce back, but they would bounce back to being India. Their clusterfuck complexity is incomprehensible to outsiders, but they blend 5000 years of technology into every busy street. Oxcarts and AC busses, and everything in-between.

India did not cut all the rungs on the ladder as it climbed, unlike the rest of us.

Tue, 09/20/2011 - 05:53 | 1687929 Léonard
Léonard's picture

Europe will not disintegrate. This is only a wet anglo-american dream to make people forget about the anglo-american sphere upcoming collapse and the end of the dollar.

Just take a look at the UK national debt, the UK economy based on the collapsing banking system and also to the US National debt, the US States debt, the US banks and the US consummers debt and compare it to Europe and the Eurozone. Europe goes pretty well compare to the USSA and Perfide Albion.

Mind you, the US and the UK even needed France to go on war to Lybia. That should tell you how bad the financial situation is for these two.

Tue, 09/20/2011 - 00:04 | 1687520 edotabin
edotabin's picture

The nerve of those europeans to speak poorly to Timmay! This is what they get.

I can see Gpap on the horn with the public prosecutor.....again.

Tue, 09/20/2011 - 03:00 | 1687799 bid the soldier...
bid the soldiers shoot's picture

Remember, they built the original Maginot Line.

Mon, 09/19/2011 - 23:36 | 1687401 chump666
chump666's picture

They do that, Germany will leave the EU the next day - back to the Deutschmark. 

Mon, 09/19/2011 - 23:48 | 1687449 Ahmeexnal
Ahmeexnal's picture

You are correct. Germany will go back to the Mark....the 1923 Weimar mark!

Tue, 09/20/2011 - 00:06 | 1687533 Uncle Remus
Uncle Remus's picture

Beware homeless painters in Vienna. Or is it out of work actors/out of office ex-governators in Sacramento?

Tue, 09/20/2011 - 00:14 | 1687563 Pool Shark
Pool Shark's picture

Unemployed baseball pitchers (Castro) 

Tue, 09/20/2011 - 00:03 | 1687513 lolmao500
lolmao500's picture

Riiiiiiiiiight. They have to kick Merkel out and a whole other bunch of treasonous EU shills before that happens.

Tue, 09/20/2011 - 00:21 | 1687585 Livingstrong
Livingstrong's picture

And silver!

Tue, 09/20/2011 - 02:30 | 1687762 dleddy14
dleddy14's picture

Ha ha, I skimmed this arrticle, said to myself "gold".  Came down to the comments, and there was yours.  perfect.

Mon, 09/19/2011 - 23:27 | 1687339 Yen Cross
Yen Cross's picture

 Just wait until (PBOC) pulls the rug on, the other bond markets!  Can you say bubble?

 

Mon, 09/19/2011 - 23:23 | 1687341 duo
duo's picture

mmmmm, trade war begun, it has

Mon, 09/19/2011 - 23:26 | 1687351 jdelano
jdelano's picture

Too old, too old to begin the (infantry) training.

Mon, 09/19/2011 - 23:30 | 1687373 tmosley
tmosley's picture

They'll get to you once they are out of children for the meat grinder.

Mon, 09/19/2011 - 23:37 | 1687403 Manthong
Manthong's picture

If you have a lot of (recent) experience crawling and dragging things, sniper duty might be an option.

Tue, 09/20/2011 - 12:21 | 1689121 Rhodin
Rhodin's picture

Takes a bit more than that.  I'm a decent shot, but would never qualify for sniper.  I've talked to a few ex snipers, though most don't talk much,  or avoid the subject.  It's not an average job.  Work with little or intermittent  backup and support.  Need excellent eyesight, patience, self-control and perfectionism.  Few can relax and enjoy killing, (not actually required though);  I'm hearing the younger folk have less problem with that last item.  In recent years more can do the job since tech has made it easier to plot bullet drop/range, wind drift, temperature, and humidity for one shot hits at long range. 

Mon, 09/19/2011 - 23:56 | 1687487 DoChenRollingBearing
DoChenRollingBearing's picture

Not me tmosley!  Too old.  Besides I'll shoot the f**kers trying to get ME or my stuff.

Maybe I should send our kid down to Peru...  You know, an long "internship"...

Tue, 09/20/2011 - 00:21 | 1687587 X.inf.capt
X.inf.capt's picture

You should think about that really seriously, bearing. trade wars lead to shooting wars.

this sucks.

taiwan?

india?

pakistan!

here we go!

Tue, 09/20/2011 - 00:53 | 1687643 Captain Benny
Captain Benny's picture

All this take of "trade wars" makes me think back to the classic Tradewars 2002 and how bad ass it was to play long before most of you fellas heard of the Internet and many years before it was polluted by commercialism and banner ads.  http://en.wikipedia.org/wiki/TradeWars_2002

Tue, 09/20/2011 - 02:31 | 1687765 AmCockerSpaniel
AmCockerSpaniel's picture

Did my tour of duty in Vietnam 1968~1969. It sucked, wounded twice, and for what? Anyone who thinks this will be fun needs to enlist now, and get some practice in Afghanistan. It's just not like they show it in the movies.

Tue, 09/20/2011 - 03:38 | 1687827 Dave Thomas
Dave Thomas's picture

Colony Transport Steal Resell FTW!

 

Although I always bought the Taurian Mule for some reason, never felt comfortable buying all those holds. Heh.

 

Mon, 09/19/2011 - 23:44 | 1687419 wisefool
wisefool's picture

I kinda figured the whole "We are going to stop buying treasuries and buy american equities such as AAPL, IBM, Google, etc" was a mind trick.

Why exactly would they need to pay for the technical readouts, when they are the manufacturer and have them implictily? USTs are the easiest;y convervtable device to US land. (mining, minerals, agriculture) Not a single shot needs to be fired from the fully operational battle station.

Tue, 09/20/2011 - 00:08 | 1687538 DeadFred
DeadFred's picture

I also think the "we still like US treasuries" is also a mind game". Trust them? I don't think so. Machiavelli was an amateur compared to the Chinese.

Tue, 09/20/2011 - 00:00 | 1687499 CrockettAlmanac.com
CrockettAlmanac.com's picture

Too old, too old to begin the (infantry) training.

 

Poor old Edgar Derby.

Tue, 09/20/2011 - 00:02 | 1687508 Fukushima Sam
Fukushima Sam's picture

Oh shit, that reminds me that I need to buy more bullets!

Mon, 09/19/2011 - 23:30 | 1687369 Dapper Dan
Dapper Dan's picture

We fire back.

Reuters) - U.S. trade officials will announce a major trade enforcement action against China on Tuesday, according to a U.S. Trade Representative's office advisory obtained from a business group.

Mon, 09/19/2011 - 23:33 | 1687388 Hopium Dealer
Hopium Dealer's picture

Well, Walmart shoppers are going to be pissed in a few months.

Tue, 09/20/2011 - 01:32 | 1687704 SoCalBusted
SoCalBusted's picture

No toys for the kiddies too!  (Lead consumption will be down)

Mon, 09/19/2011 - 23:47 | 1687445 lolmao500
lolmao500's picture

http://www.moneycontrol.com/news/wire-news/us-to-announce-china-trade-en...

U.S. to announce China trade enforcement action

U.S. trade officials will announce a major trade enforcement action against China on Tuesday, according to an advisory from the U.S. Trade Representative's office.

The advisory, which was obtained from a business group, said U.S. Trade Representative Ron Kirk "will hold a press conference to announce a major trade enforcement action against China." It gave no other details.

Mon, 09/19/2011 - 23:58 | 1687494 DoChenRollingBearing
DoChenRollingBearing's picture

Ah, Ron Kirk.  So that's what he is up too now.  Trade Representative Ron Kirk really inspires me with confidence, a blast from the past.

 

/sarc

Mon, 09/19/2011 - 23:36 | 1687400 Oh regional Indian
Oh regional Indian's picture

Yo! Da! It's true. 

China has a history of this. Till mid-october 1962 they had a slogan "India and China....Brothers Brothers", on 20th October, Independent India's first war, which we lost. Badly at that.

This will end really badly! Not unexpected though.

It's the EQUINOX surprise! 

China, incidentally, is a 33rd parallel nation.

War, served differently.

33rd Parallel Action

ORI

 

Tue, 09/20/2011 - 00:02 | 1687510 DoChenRollingBearing
DoChenRollingBearing's picture

Well, ORI, your article is strange as usual but thought provoking.  Have a green on me!

Tue, 09/20/2011 - 01:11 | 1687675 Oh regional Indian
Oh regional Indian's picture

;-) I take that as a compliment and a thought provoked. Thanks DCRB.

And hey, if I were you, I would send the kid to Peru. Soon.

ORI

Mon, 09/19/2011 - 23:23 | 1687342 Mike2756
Mike2756's picture

B-b-b-b-but i thought they were going to bail them out!

Mon, 09/19/2011 - 23:34 | 1687389 Ahmeexnal
Ahmeexnal's picture

Would you bail them out?

Tue, 09/20/2011 - 00:32 | 1687612 DeadFred
DeadFred's picture

If my printer still had ink? Sure, why not?

Mon, 09/19/2011 - 23:24 | 1687343 madddmaxxx
madddmaxxx's picture

This isn't going to end well.

Mon, 09/19/2011 - 23:24 | 1687346 jdelano
jdelano's picture

Do you think there will be actual ground troop deployments in this war or will they skip right ahead to the nukes?

Tue, 09/20/2011 - 00:05 | 1687525 lolmao500
lolmao500's picture

Probably proxy wars then if it fails, nuclear war.

Tue, 09/20/2011 - 00:29 | 1687556 poor fella
poor fella's picture

Skynet deals in algorithms and FX wars now. It's our algo's vs. theirs.

Two currencies enter, one currency leaves.

Sidelines bitchez.

Tue, 09/20/2011 - 00:16 | 1687571 Korbin Dallas
Korbin Dallas's picture

Their army is only good for parades and shooting/raping protesting villagers.  Their navy, best suited for mollusc shoal development, hasn't been blue water-operational since a Mongol/Persian eunuch sailed to Africa (Zheng He, over 600 years ago, and he wasn't Chinese).  The air force is composed of purloined goods (think Gucci but more stealthy). No fear of their military prowess except its fear effect on South Korea, Japan, and Taiwan.  For that, we have enough to rattle back.

China wouldn't rattle their rusty sabers and tombones (j/k) if that wasn't their only muscle to flex.  Once they're done with that, their quivers are empty.

Tue, 09/20/2011 - 00:19 | 1687579 poor fella
poor fella's picture

Chinese hackers stealing code from Israeli hackers could f0ck sh!t up... for cheap.

Tue, 09/20/2011 - 00:30 | 1687608 newworldorder
newworldorder's picture

Bulls...

Their average soldier loves his country just like we love ours. A lot of Americas best children would be lost going up against them. If it happens it better be against the invasion of the US, otherwise its a fools erand.

Think before you open your mouth or rattle your rusty sabers.

Tue, 09/20/2011 - 00:41 | 1687625 lolmao500
lolmao500's picture

And that is true of every country in every war. Yet wars still happen. So your argument is moot.

Tue, 09/20/2011 - 03:48 | 1687836 eftian
Mon, 09/19/2011 - 23:25 | 1687347 Cleanclog
Cleanclog's picture

Oh shit! Nuclear option coming, but not from China.

Mon, 09/19/2011 - 23:27 | 1687356 Mike2756
Mon, 09/19/2011 - 23:45 | 1687436 PaperWillBurn
PaperWillBurn's picture

Yup 

 

"The Nuclear Option

The ECB and the BIS have a secret weapon. They don't want to have to use it because they don't want to be seen as the instigators of the dollar's collapse. They would prefer the market to take care of it for them. But don't doubt for a second that they won't use it before sitting back and watching permanent damage come to the euro system.

Just imagine how Greece could deal with its problems if its gold were valued at $55,000 usd per ounce. In terms of current exchange rates that would raise Greece's liquid assets to 50% of its public debt. In other words, instead of being a "sub-prime" borrower, Greece would instantly become a PRIME borrower."

 

http://fofoa.blogspot.com/2010/02/greece-is-word.html

Tue, 09/20/2011 - 00:05 | 1687527 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1780 and green

I am a big FOFOA fan.  His case for gold making a huge price rise is logical, he builds his case brick-by-brick.  While no one can predict the future, I too have chosen him as my Trail Guide for the turbulence ahead.

I would have bought MANY fewer ounces of gold were it not for FOFOA.

(Disclosure: I contribute to his blog and am LONG physical gold).

Tue, 09/20/2011 - 01:21 | 1687689 RockyRacoon
RockyRacoon's picture

Me too!  Me too!   I very seldom read articles as long as his, but I look forward to each one.

Mon, 09/19/2011 - 23:26 | 1687352 LarryDallas
LarryDallas's picture

This is bullish, as you can eat foreign exchange forwards and swaps.

Tue, 09/20/2011 - 00:06 | 1687530 CrockettAlmanac.com
CrockettAlmanac.com's picture

Let's get the girls and head down to the Regal Beagal for some right now!

Tue, 09/20/2011 - 00:23 | 1687596 Troll Magnet
Troll Magnet's picture

Come and knock on our door~

We've been waiting for you~

Where the kisses are hers and hers and his~

Three's company too~

Mon, 09/19/2011 - 23:26 | 1687353 caerus
caerus's picture

"what else we can buy if not U.S. Treasuries? "

this imo is the recent us treasury trade in a nutshell...panic fleeing to a not so safe asset

Mon, 09/19/2011 - 23:49 | 1687453 phraseshifter
phraseshifter's picture

long- paddles...

Tue, 09/20/2011 - 02:33 | 1687767 AmCockerSpaniel
AmCockerSpaniel's picture

Gold and Silver for starts.

Mon, 09/19/2011 - 23:26 | 1687354 JW n FL
JW n FL's picture

 

 

19/09/2011 17:00:00
CHINA CITIC EXTENDS DEUTSCHE BANK FX4CASH SERVICE TO CORPORATE CLIENTS

China Citic Bank is to extend the use of Deutsche Bank's FX4Cash system beyond its retail base to provide global cross-currency payments processing for its corporate clients.

More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=22964
 

Mon, 09/19/2011 - 23:27 | 1687355 Dingleberry
Dingleberry's picture

PRINT OR DIE EURO-FUCKERS!!!!!!! JUST LIKE GEITHNER TOLD YOU BITCHEZ!

Mon, 09/19/2011 - 23:50 | 1687458 lolmao500
lolmao500's picture

First time ever Timmy is right about anything.

Mon, 09/19/2011 - 23:27 | 1687357 JW n FL
JW n FL's picture

 

 

China is a Paper, Phoney Tiger.. built by America.

Mon, 09/19/2011 - 23:36 | 1687402 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

When you say "America" I think you mean "Rockefellers" who hold no allegiancee to any State.

Mon, 09/19/2011 - 23:51 | 1687467 JW n FL
JW n FL's picture

 

 

You are correct Fine Sir! I do stand corrected!

but it wasnt the Rockefellers as much as..

KKR / Blackstone (+ Private SIV's) / Carlyle / Apollo and the I could go on but that would be getting to personal. 

Tue, 09/20/2011 - 00:07 | 1687535 DoChenRollingBearing
DoChenRollingBearing's picture

+++ and green for the excellent dialogue above.

Tue, 09/20/2011 - 00:20 | 1687580 reader2010
reader2010's picture

When Nixon first visited Bejing in 1972,  David Rockefeller was with him. Imagine that.

Mon, 09/19/2011 - 23:28 | 1687360 bankonzhongguo
bankonzhongguo's picture

Why China is not dumping its UST for physical gold relocated to the Motherland is beyond me.

Load those COSCO ships with gold bars and not bundles of cardboard.

Come back in two weeks and purchase California (the good parts anyway).

Mon, 09/19/2011 - 23:34 | 1687390 nope-1004
nope-1004's picture

They are.  Except, if they said so, the US would deploy troops and, well, you know the rest of the "spread freedom" bullshit.

But don't think that what you read is really what's going on.  The Chinese, like everyone else, don't want panic and need time to keep accumulating.

 

Tue, 09/20/2011 - 00:08 | 1687542 DoChenRollingBearing
DoChenRollingBearing's picture

My belief as well.  China is buying whatever they can that holds real value, but slowly, so as not to alarm the sheep...

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