First ECB, Now China Says Has "No Plans For Massive Stimulus"

Tyler Durden's picture

First the ECB kicked the stimulus junkies in the crotch in the after hours session, now the PBOC is about to eat their faces for breakfast as both rumors causing overnight and intraday stock ramps are systematically denied. From Bloomberg: "China has no plan to introduce stimulus measures to support growth on the scale unleashed during the depths of the global credit crisis in 2008 according to the nation’s state-run Xinhua News Agency. “The Chinese government’s intention is very clear: It will not roll out another massive stimulus plan to seek high economic growth,” Xinhua said yesterday in the seventh paragraph of a Chinese-language article on economic policy, without attributing the information. “The current efforts for stabilizing growth will not repeat the old way of three years ago." And with that the rug is pulled out from below anyone praying for non-Fed stimulus.

Which only means one thing: those addicted to monetary morphine better pray that this Friday's NFP number come at worse than -1,000,000 as otherwise, with the rest of the world just saying no to more inflation (and not having the safety of a $16 trillion shadow banking deposit-free inflation buffer), Bernanke just may not have the standing to unleash the final CTRL-P onslaught. Of course, with the global Bernanke Put sadly dominating habitual gambler thinking until at least one bank is allowed to fail under the weight of its countless liabilities, idiotic rumors such as these will continue sending risk higher, only to be denied, and to have the whole game repeat over and over.

From Bloomberg:

Pumping in government money to achieve growth targets is “not sustainable” and China will instead focus on encouraging private investments in railways, infrastructure, energy, telecommunications, health care and education, the story said.


China’s benchmark Shanghai Composite Index has gained 1.8 percent since Wen’s call for growth was published May 20. The National Development and Reform Commission may be accelerating construction approvals as part of China’s response, with the planning agency last week saying that Baosteel Group Corp. and Wuhan Iron & Steel Group won permission to build 134 billion yuan ($21 billion) of new factories. The NDRC had delayed approving the two steel projects in 2009, citing industry overcapacity.


Credit Suisse said spending on investment will probably range from 1 trillion yuan to 2 trillion yuan. Standard Chartered said China is starting a “mini-me” version of the prior stimulus.


China’s economy is forecast to expand 8.2 percent this year, based on the median estimate of analysts surveyed this month by Bloomberg News. That would be the least since 1999.


“Unlike in 2008 when the Chinese government rushed to spend, the new stimulus package will be small and modest,” said Zhang Xinfa, an economist with China Galaxy Securities Co. in Beijing. Bank lending will play a smaller role in the new round of investment, he said.

It increasingly looks like that the episode of coordinated global interventions, which started in 2011, may be over rather prematurely, leaving just one former Princeton university professor in charge of the global negative cost of money. 

What can possibly go wrong.

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Check to Benjamin to print more benjamins.

Colombian Gringo's picture

One thing that all banksters have in common is they are all liars.  Of course they will stimulate to save their worthless asses.

SWRichmond's picture

The people will demand printing next time me on this one.  The central banksters will be off the hook, as it will not have been their idea.  Some subset of "the people" will demand it, and that will be that.  The media will have a story to tell, and they will tell it and tell it:


"Under unrelenting pressure from political and popular groups worldwide, in order to alleviate the devastating financial collapse that the entire world has experienced, the Federal Reserve Bank, the BoJ, the ECB, and Bank of China have agreed to coordinated monetary actions to spur economic growth."

Cue video clips of riots, starving children, wars breaking out, and deliberating political "leaders."

markmotive's picture

Yeah, just like Lehman was solvent on Friday September 12, 2008.

And just like housing prices never fall on a national level.

And just like the subprime issue was contained.


strannick's picture

If China needs to raise some cash it can always sell its treasuries.

hornster's picture

5 year plan don't you know any history?

fonzannoon's picture

Maybe they demand that the banks are allowed to fail but the depositors get bailed out this time. Thats my hope anyway.

Taint Boil's picture



Cue video clips of riots, starving children, wars breaking out, and deliberating political "leaders."

Better get the "deer in the head lights" ready - gonna need that one too.

Buck Johnson's picture

Yep, until they can't save it anymore.  Also that China rumor is what kept the market in green today and now it was shot down (don't know why they didn't shoot it down before the close).  It's almost as if the rest of the world is trying to jawbone the market into positive.  The problem is that the EU did it so much that now people see through it, and other countries attempt at it aren't as effective and don't last as long.

Manthong's picture

China has it’s deals with Japan, Iran, India, Brazil, Russia and likely with a bunch of SEANs and others..

Maybe they are prepared to let the West simmer in its own juices for a while.

LeonardoFibonacci's picture

Colombian Gringo wrote ""Of course they will stimulate to save their worthless asses.""


The only stimulus these bastards will get is when they will pay for their mistakes.  Otherwise they should go to a sensual massage parlor and get stimulated with a hand job done by some asian chick for $80.

Unbezahlbar's picture

The 1.3 Billion Middle Kingdom People are very dissimilar then Americans and their society is structured differently from what I read...they have no unemployemnt benefits, no free health care, no free Section 8 housing, no free cell phones, no free EBT cards, and no free SNAP....and they don't retire at 52 sipping ouzo or California Merlot.

My guess is the Hoards will take 'austerity' very seriously.

laomei's picture

China does have unemployment benefits, socialized (basic) healthcare, highly subsidized government housing, a localized "minimum income" standard and a highly progressive tax system.  Not to mention subsidized public mass transit, no property taxes, and farmers are 100% untaxed on their agricultural incomes regardless of how much they manage to pull in.

vast-dom's picture



(and remember if ths shithouse goes under China will, relatively speaking for too many reasons to outline, fare better than eurozone and usa)

Colombian Gringo's picture

Facebook, below 29$.  Suck it MillionDollarBonus

Ned Zeppelin's picture

Uh. . . . MDB is pulling your leg, you know that, right?


Colombian Gringo's picture

I know MDB is full of it, I just enjoy rubbing in in his face.

BandGap's picture

You sir, are a numbnuts.

He should post that he's cost averaging down at this point.

Cdad's picture

And global markets once again make complete asses of themselves.  And somehow we are supposed to be more confident in this jerry rigged, Pachinko machine, algorithm infested, TBTF bank poisoned system.  Right.  Sure.  I'm certain Average Joe's everywhere are rushing to buy shares of Netflix and The Gap and Chipotle.

What a joke.

CClarity's picture

Cut to bartering in the burroughs.  Cash no longer king if it's fiat cash.

chump666's picture

Global ecomomy is still awash with ECB/Fed printing and European goverment spending.

The flow on is slamming into Asia.  Nice.  Hence Asia buying up tons of USD on inflation/meltdown fear.  China is leaking badly, PBoC go all mad and the Chinese will dump the Yuan like a rotten dim sim.

chump666's picture

I repeat

"China is leaking badly, PBoC go all mad and the Chinese will dump the Yuan like a rotten dim sim."

thank you

CPL's picture

Then the big red button is pushed.  

JeffB's picture

Asia buying up tons of gold.



JustObserving's picture

While the US is manipulating gold lower.  From today's gold action:

One does not drop 11,000 contracts in a ten minute period in what might be called a reasonable trade. 

Will the CFTC investigate, asking the seller why perchance they did this? No, and that in itself speaks volumes.

But the solution is not to try and trade these scandalously under-regulated markets, but instead to hold long term investment positions, preferably as far away from Wall Street as is possible.

FinalCollapse's picture

"Will the CFTC investigate, asking the seller why perchance they did this? No, and that in itself speaks volumes"

Here is the reply from the CFTC: 'Blow me'.

SaveTheBales's picture

Miss Direction?

Are you ready for your Close-up, now?

Bankers fail to print and take the loss themselves?  Yeah.  Yeah, that's the ticket.  And they're doing God's work, and helping people with their mortgage problems.  Who knew?

Boilermaker's picture

ES down almost 4 handles after being run up 16 on the rumor of the news.


Conman's picture

Oh, just wait. It'll be up 4 handles sometime during the overnight session.

Boilermaker's picture

Yes, but that will be on new found hopes of a Greek solution, unicorn tears, and gum drop dreams.

Conman's picture

Yup, Greece will announce they found Medusa living in a cave, but she can turn people into gold isntead of stone. Millions will be sacraficed but Europe will be savedd. Oh wait isnt that waht "austerity" is doing?

q99x2's picture

There goes my contractor's license.

Christoph830's picture

Talk is fucking cheap. These guys will print and print until fiat collapses under its own weight. I'm not buying it.

Zgangsta's picture
JPMorgan Securities Investigated In Japan SESC Probe

robertocarlos's picture

They should open some soup kitchens.

dragoneyes74's picture

Bernanke will hit the print button because American leaders are elected and stocks must be rising, the dollar must be killed to boost exports and GDP needs the government spending to keep from deflating.  The only question is whether QE3 happens in July or August.  


e-man's picture

China won't even bail out China?  But I thought they were going to bail out Europe... I think someone needs to re-tool the rumor mill.

SaveTheBales's picture

Perhaps China has made the calculation that they will outlast their competitors at this Central Bank Breath-holding contest.

e-man's picture

The stage is set...Bernanke will yell Leeroy Jenkins as he hits Ctrl P.

Alpacanio's picture

And why not... China is buying every ton of gold they can find. Trade and currancy deals all over the planet...

nmewn's picture

Krugman: WTF!!!

CURWAR2012's picture

Denial among the Banks is so strong, they have lost their minds. The massive public and private debts already can not be repaid so..... wait a minute, they essentially have nothing to lose one way or another, they are FU--ed. 

junkyardjack's picture

"China has no plan to introduce stimulus measures to support growth on the scale unleashed during the depths of the global credit crisis in 2008 according to the nation’s state-run Xinhua News Agency."


Exactly, this crisis needs 3x as much, diminishing returns Bitchez!....

Ned Zeppelin's picture

HSBS guy on Bloomberg Surveillance this am said all this - no stimulus, will be confined to a few infrastructure projects, China's growth is still chugging along, according to him.  

adyaner's picture

Dueling Banjos baby¡¡¡¡ ECB vs Benji...