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Kiss Hopes Of Chinese Easing Goodbye: January Inflation In China Soars To Highest Since October
Yesterday when we discussed the surprising non-cut in the Australia cash rate, we asked "is China re-exporting the lagging US inflation it imported over 2011? " and said that "It means that Chinese inflation continues to be far higher than what is represented... and wonder: did the RBA just catch the PBOC lying about its subdued inflation?" Lastly, we concluded: "Furthermore, the PBOC did 26 billion yuan in repos, meaning it is set to conduct a net liquidity withdrawal for this week according to Credit Agricole. Withdrawing liquidity when the market expects RRR cuts?" Sure enough, as usually happens when assuming sentiment manipulation by a centrally planned powerhouse such as the US, and in far lesser degree these days, China, we were right. The news just out of China is that January inflation soared far beyond expectations, with CPI printing at 4.5% Y/Y, compared to estimates of a decline to 4% from December's 4.1%. This was the highest inflation since October. We will simply repeat our conclusion from yesterday, which while speculation then is now confirmed: "Chinese easing is a long way off... and in a market defined solely by hopes for central bank intervention this is not good." Practically, this means that the PBOC just told the world that no easing will come from China in a long time, and that the Fed and the ECB are alone in reliquifying the market. It also means that one can kiss the Chinese growth dynamo story goodbye, and once the US finally recouples with the rest of the world, the only hope will be a new announcement of QE in March so it hits its maximum efficiency in time for Obama's reelection campaign.
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Who Flung Dung at Lawrence Yun?
Ben Bernanke and Keynesian policy.
ROR!!!
Aaaaaannnd gold reverses it's .8% decline.
Platinum's strength today is a definate tell. Look for the PM complex to ride out any volatility better than any other asset.
I write that because this system is (obviously) due for a large dose of volatility.
And as the Chinese housing bubble goes Super Nova, they are still struggling with inflation just like the USA.
NO. China's is higher and higher still, thanks to Barnank "export" policy.
Except that usSa isn't well neither, also thanks to his "no-employment" policy.
His job is secure because he is handling both of his tasks well.
To whom it may concern?
China is going to be easing to compensate for the rise in their currency against the euro, their largest trading partner. Bernanke will counter with QE3 to counter China's move and the coming LTRO easing. It is a race to the bottom. Great video from RT today interviewing Jim Rickards who wrote the book on currency wars:
http://www.ftense.com/2012/02/jim-rickards-on-war-with-iran-qe3.html
Since the Chinks make up their econ data to suit their needs, I take this CPI figure as a clear message to Bernake: STOP THE PRESSES.
I don't think it's just the "Chinks" who make up their data to suit their needs. They are pretty good at reverse engineering and they have had a lot of lessons from the U.S.
Doc
How can a redneck get his racism out the way enough to think.
You're a good guy, but you're asking a lot of a tiny brain
om
In order to deal CORRECTLY with those DIABOLIC BANKSTERS one must resort to mafia ways!!! Any means are acceptable.
Remember that you're dealing with the CENTURY-OLD extremely wicked SOCIOPATHS!!!
Matrix, Pleeese
Go back to alex jones or cnn or fox or wherever you came from
We have enough hyperbole here already
In fact, you really could make a difference, if you want, by some collaboration with Occupy.
We're just a bunch of old whiners and rednecks----we're not serious about CHANGING ANYTHING
Good luck to you in any event om
take it easy oldman, i do mean that in dealing with TheOligarchs who control the NY and TheCity of London for the last two centuries (at least), one needs not to play gentleman, ANY means, yes ANY means, can be used to beat them!!! you don't play nice with those dangerous criminals!!!
Fair enough, just stop harassing us here with your bolded uppercaps. If you want anyone to pay any attention to your posts, that is.
And kiss any hopes of JUSTICE goodbye...
http://www.bloomberg.com/news/2012-02-08/foreclosure-deal-to-offer-17b-m...
Its not like the good ole days, where the king sells a monopoly in salt, or some other essential commodity, to raise revenue. We're too cool for that. Moden states auction off the legal system.
Yep, no justice for the small people.
And they wonder why nobody will shed a tear when they are all strung up from light poles?
There is no more criminal justice when dealing with corporations, only civil retribution. Only a cost of doing business.
If I were to go into court with a forged document, I would be catching for Bubba pronto in a prison cell. Banks, well, a fine and some more regulations that will "stop this from happening again."
Just one big group, a big fucking club if you will, and we ain't in it!
pods
This Robo-signing "Bullshit" is a proxy to get all the Banks in possession of clean titles and paperwork regarding the MERS (Mortgage Electronic Registration System) mess...........................They wan't clear title so that they can foreclose without having someone ask for the "Lost" deed that they don't have ! This foreclosure phase will be spread out over time so that the "Mark to Myth" balance sheets can shed the deadbeats slowly and write off the losses, now that they have frontrun them (losses) and been reimbursed with taxpayer bailouts.
How many banks (JPM, BAC, Waumu and all the others) will be paying taxes for the next 100 years with all the loss carry forwards ?
Answer: None !
The media arm of our corporate government focused on the robosigning aspect in order to minimize the blowback from people learning the truth about how bad they got fucked. I heard in a couple of instances that some loans were put into multiple MBSs, and that none of the correct (legal) procedures were followed either for the holder to foreclose, or the buyer of the MBS to receive a tax benefit due the the REMIC being corrupted and loans being put into the conduit that were blank.
Just by using the term Robosigning they were able to condense things down to something simple that most amerikans could dismiss, instead of actually showing how bad things really were.
And with this, the government now has plausible deniability because the SOL is going to run out on prosecuting these fucks so the only avenue left is civil penalty, which is exactly what everyone wanted from the get go. So they can play big enforcer while they wait for the SOL to run out, then blame the banks after people find out that all the DA's were in on the deal. The DA's will say their hands are tied, they dealt in good faith with the banks, but the SOL ran out and civil fine is the only thing left.
Eric "place" Holder's main job is to sit on all of this until it is safe for his masters.
Fucking crooks, every last one of them.
pods
"And they wonder why nobody will shed a tear when they are all strung up from light poles?"
As much as I agree with you on your other points I just don't see this one happening. The sheeple will take this screwing too and go on about their day.
To be honest, neither do it. I guess you could call it a wish?
Where did I put that Hopium pipe.................
They don't even know their gaping orifices are being violated. Foreplay was; Bend over.
No, not even that level of seduction was pretended; they saw the body and went to work.
Doc,
I agree, but I have a question for for because I've been out of touch for a couple of months.
What are the dudes here doing and/or saying about Occupy? I haven't seen as much comment about these non-sheeple as I have about the rest of us.
Is the consensus at ZH still as negative towards the only people in the street as it was before xmas?
Thanks om
Personally I think OWS a good thing, but the clueless extremists (communists and fascists) took over.
non pasaron
who is left to talk to if we eliminate communists and fascists?
I know that 'it will all work out in the end', but I might not be here for the end----and it is illegal to be an anarchist
I guess I'll just have to continue pretending it is just a cartoon or completely cleanse myself of the human context of reality---it really is quite a narrow piece of the universe---
thanks for your comment om
Chinese were the international equivalent of the "1%"; the sugar daddy who was going to pay the bills. Oh well.
Let me be the first one to jump onto the "invaders from Alpha Centauri" will-save-us bandwagon.
They only have to dig out one of the old script books from the 60s.
http://www.teachpeace.com/Report_from_Iron_Mountain.pdf
Doesn't matter. Greeks/EU/IMF will announce a deal (regardless of merit or lack thereof). Market will cheer. Next wave LTRO will hit on February 29. Market will cheer. Fed will answer with QE3 to hold down value of dollar in support of our "export led recovery". Market will cheer. Obama will get reelected. In 2013, we are all likely to cry!
Asia started selling off pretty good when this hit. Seems like it already cut those losses in half.
US futures well of their lows too.
Ah the holidays distorted the data.
sarc/sigh
No, holidays already caused the BDI to collapse.
The Baltic Dry Index is off of its Friday, Feb 3, 2012 low of 647, today is at 676.
As I have posted a couple of times already, if this plays out like it did in 2008/2009, there should be a large "correction" coming around May 3, 2012.
They need to get with the program with some seasonal adjustments.
Their inflation was low until IMF asked them to contribute money.
They don't need excuses. I am surprised the don't just tell the IMF to fk off already.
Even at ZeroHedge we dont discuss the Greek Default.. coming at the latest possible date.. in March.
QE will only be part of the World! Wide!! Bailout!!!
I am going to paint one of those.. The End is NEAR!! signs!! and walk around with it! telling people to repent that their time has come!! or something like that!
As long as there is no deal they can kick the can down the road. Rally!
With such differences in culture, a smattering of xenophobia, growing fear...
perhaps still we are starting to recognize the same behavior everywhere, on the part of a leadership that does not lead anywhere but into corners.
When the Outliers finally succeed in infesting the very psyche of a society, it is time Accept that something's gone wrong, and there are no palatable solutions.
The malignantly Self-Absorbed have, collectively and finally, mucked it up beyond repair.
Now there will be a Redefinition of the Problem, because nothing stands still, and that is all that's left to do.
Beware the Narcissist, and Damn them all.
That's gone make a huge dent in American manufacuring
Asia is shaking off this news like a wet dog. It's going to rip higher. Now drink your bacon milkshake and move on.
Mmm, bacon milk shake.
Only in Saud...er, America!
Everything is priced in now.
Until it isn't.
When the music stops, there will be NO chairs left.
Well, at least Ben...er...the U.S. will be able to maintain its inflation exports.
Dat's a wong number...
Sorry, I had too.
and thus "commodities will remain priced in dollars forever." China doesn't need another empty city. It needs FOOD. The USA can produce as much as they need...for a price...in dolares. if February is any indication this year could be the biggest production year in agriculture in the history of the US. do we no have a 12 month growing season? very odd this loss of both winter and cloud cover. i can forsee serious drought concerns however on the Eastern seaboard, the South and (hopefully not) Texas and of course the desert South West. When i see no less than the Weather Channel (let alone the local guy) missing temperature gradiants by 20 degrees i really start to wonder if this is being done intentionally (lest people not worry enough.) Will the Mississippi soon become but a trickle? FOODSHED BITCHEZ!
Much of the bread basket is in a drought. We have had almost no snow this winter so it is growing worse. If the jet stream stays to the North into spring we will be in serious trouble. Soil moisture is low from Texas into Minnesota.
OUR printing weakens THEIR investment.
None of the countries WITH financial discipline have any intention of bailing out the "weak links."
Anyone see the Canadian bonds issued in US dollars? What was that about?
oh! my EUchineHopium is gonzo!
i don't care if china mops up a currency spill or floods the yangWang valley
whether the ECB & FED add more liquidity~~~well, what is swapping if not reverse mopping?
You just mashed The Everly Bros and the Beach Boys haha!
Peter Schiff has a belief that at some point China will hike the wages of their citizens and at the same time they will revalue their currency against the USD and the Remnimbi will skyrocket and the US exported inflation will be shoved right back in our faces. The rise of the china middle class will begin as they sell the goods they produce domestically to their citizens.
I wonder if he is dreaming or if that will take place one day.
More likely the US shadow gov will release a Chinese specific flu virus to sell those new Chinese middle class antiviral medications that make you sterile.
He seems to be right on target about a lot of things.
It is already taking place, I work in manufacturing in China and everytime we place a PO to the Chinese factories they jack up the prices...the inflation there is real, and unless the dollar strengtens we will have runaway inflation in this country as well...which is what the fed wants.
They need to dispose majority of their UST holdings, convert them into hard assets of some sort and prepare for rise in unemployment before they can do that. Otherwise, they risk serious internal destabilization. However, when that happens, it will happen rather quickly.
Since Americans can't survive without a new iPhone every two years, Chinese can hike the prices as much as they want.
On CNBC Asia, the bulls are spinning this higher than expected inflation as positive. They say it means no hard landing, the economy is growing.
If the inflation were lower than expected, they would spin it as positive too (it means more easing is coming).
If it were as expected, it means goldilocks soft landing.
Any inflation is a positive scenario for the bulls.
markets are rallying on the possible Greek outcome, all going back into their trading ranges before the China CPI sell off.
It's priced in and it's bullish.
No numbers would be very bad, so any number nowadays is very bullish, spin spin spin.
Anybody read this interview with Kissinger, if you can't hear the drums of war, you must be deaf:
http://www.dailysquib.co.uk/index.php?news=3089
Is this a real interview or an attempt to compete with the onion???
Look up squib. It's satire...but not far from the truth.
Of course! Thanks Randall.
Thanks Hulk for bringing it into limelight here!
It'll be a waste to overlook such a fascinating writing as this one!
Henry Kissinger: "If You Can't Hear the Drums of War You Must Be Deaf"By Alfred Heinz 27/11/2011 09:40:00
NEW YORK - USA - In a remarkable admission by former Nixon era Secretary of State, Henry Kissinger, reveals what is happening at the moment in the world and particularly the Middle East.
Speaking from his luxurious Manhattan apartment, the elder statesman, who will be 89 in May, is all too forward with his analysis of the current situation in the world forum of Geo-politics and economics.
"The United States is baiting China and Russia, and the final nail in the coffin will be Iran, which is, of course, the main target of Israel. We have allowed China to increase their military strength and Russia to recover from Sovietization, to give them a false sense of bravado, this will create an all together faster demise for them. We're like the sharp shooter daring the noob to pick up the gun, and when they try, it's bang bang. The coming war will will be so severe that only one superpower can win, and that's us folks. This is why the EU is in such a hurry to form a complete superstate because they know what is coming, and to survive, Europe will have to be one whole cohesive state. Their urgency tells me that they know full well that the big showdown is upon us. O how I have dreamed of this delightful moment."
"Control oil and you control nations; control food and you control the people."
...
http://www.dailysquib.co.uk/index.php?news=3089
control the mail, and you control...information!
it is all hinged on food, and having sufficient kaching to afford it. chicoms have many mouths to feed, if food and fresh water are not the most relevant commodity to all homo sapiens on planet earth, then all else comes off the hinges and nothing else matters. I see cans of folgers coffee selling for 12-13 dollars a can, prepare for chaos.
I just read a long article on Marketwatch..yes thats right...called "a world flying blind". They must have accidentally put that on there from some other site. There is no way something that real and articulate could have made it on there on purpose.
A World Flying Blind - Caixin Online (2012-02-08)
Here's an excerpt from the lengthy yet insightful article by Andy Xie:
The outlook for the global economy is gloomy and leaders lacking vision are to blame. Eventually, this will come back to haunt all of us
Recently, stock markets around the world have performed remarkably well. This may even continue for a few months. The U.S. Federal Reserve's promise to hold interest rates near zero until 2014 and signal of a third round of quantitative soon, combined with an improving U.S. labor market, have emboldened risk-takers. Financial markets are seeing more risk-on trade.
However, the fundamentals for the global economy remain dire. The West is mired in debt troubles, declining competitiveness and unsustainable social overheads. The East is struggling to build up robust consumer demand to balance its manufacturing prowess. So far, world leaders have used liquidity and fiscal measures to prop up demand without addressing structural problems. In essence, they are continuing to treat the global economy as a car with a dead battery rather than a bad engine.
So, 2012 will be an extremely difficult year. The global economy is likely to slip into recession, as Europe and Japan are mired in deep recession and emerging economies stall. Black swan events, such as a sovereign default in Europe, an emerging market crash, a surge in oil prices due to conflict in the Middle East, and a selloff in Japan or the U.S.'s sovereign debt market, will haunt the fragile global economy.
At the annual World Economic Forum in Davos we again saw familiar faces from the West, but some different characters from emerging economies. Some of the last year's bunch went to jail amidst the revolutions engulfing the Middle East. They were discussing how to fix capitalism. Apparently, the same people who blew up the world and got their governments to bail them out are now again making millions and talking about how to fix things. Not many people see the irony in this. The tragedy of the global financial crisis is that it didn't sweep away the old order.
During an economic boom people who are good at ingratiating themselves with the establishment tend to rise to the top. After a boom of two decades, leaders are already two to three generations into such a process. These people pretty much make a living by just looking the part. This is why the global crisis will last for years to come, until a new generation of leaders rises through a competitive process.
. . .
I love KISS - especially DETROIT ROCK CITY - I mean really is their a better city - maybe Buffalo.
Chinese stocks keep grinding up, shucking off all the "bad news"
http://quotes.ino.com/chart/intraday.gif?s=INDEX_DJSZ&t=f&w=5&a=0&v=w
Let's get back to basics.
Do you acknowledge any limit to how high a particular asset can go? And, if not, do you think that this asset holds its worth in real terms?
If the Dow goes to 20,000, then 50,000, then 1,000,000, does this mean everybody is getting wealther and richer, and we are creating utopia on this planet?
If every last 7th billionth person buys stocks, do you think they are all going to become billionaires, and their children trillionaires? And with those trillions, will each of these people be able to buy whatever they want?
Logic dictates that things don't go up forever, that whatever rises must fall, and that, if something goes up forever, it's called hyperinflation. In which case the real worth hasn't gone anywhere.
So, keep on pimping those stocks, RobotTrader. Buy it all, show us all how stupid we are, how you are going to become the richest person on the planet.
Just give it "some" time (not necessarily too long), those sheeples who join the concluding Greatest Ever Ponzi fanfare will collect enough toilet papers eventually :D
it's like the world is heading to a multitude of Titanic scenes... just try at best to get a seat in the lifeboats (and better again,, always keep ready one's own life jacket).
$12 for ONE Braeburn apple in the Oriental Plaza Mall! .....My brother was shocked....I wonder how the peasants feel when their rice dinners eat up 90% of their income. (No pun intended) That's even more expansive then Malibu.
4,000 sf houses just outside of Beijing = $3.5 million?!
Something's gonna break. When the "fat tail" hits, it will be a doozy. Read Rickards, Currency Wars...very informative.
The China Central bank has different goals than traditional central banks. Oh sure, the China Central bank is able to manage day-to-day activiities but long term, Wen will decide policy by executing the bank Chief if the policy is not in line with the goals of the State Council. The FED and ECB are governed by profits of the big banks. China's monetary policy is in line with political views of Wen.
Either way, you can't print wealth.
Foe their to be QE in March, FEB and early march have to be a disaster. Doesn't look like that from where i'm sitting
I believe the correct term for inflation in China is 'blobbing'.
"Public spitting, nose-picking, roadside-shitting, enviro-terrorist, crypto-fascist, running dog imperialist blobbing up", to be precise.
Only a Communist Country can get nearly wage-free slave labor....and still find ways to fuck it up.
http://t.co/zox0T6ss
Such is the inherent and eternal nature of Chinese citizenism citizens' citizenism.
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