Posted on 05/07/2009 5:51:53 AM PDT by TigerLikesRooster
China fears bond crisis as it slams quantitative easing
China has given its clearest warning to date that emergency monetary stimulus by Western governments risks setting off worldwide inflation and undermining global bond markets.
By Ambrose Evans-Pritchard
Last Updated: 1:13PM BST 07 May 2009
Comments 5 | Comment on this article
"A policy mistake made by some major central bank may bring inflation risks to the whole world," said the People's Central Bank in its quarterly report.
"As more and more economies are adopting unconventional monetary policies, such as quantitative easing (QE), major currencies' devaluation risks may rise," it said. The bank fears a "big consolidation" in the bond markets, clearly anxious that interest yields will surge as western states try to exit their QE experiment.
Simon Derrick, currency chief at the Bank of New York Mellon, said the report is the latest sign that China is losing patience with the US and aims to diversify part its $1.95 trillion (£1.3 trillion) foreign reserves away from US Treasuries and other dollar securities.
(Excerpt) Read more at telegraph.co.uk ...
This crisis won't bottom out unless both groups hit the rock bottom.
Quant-esaing means the Treasuries the ChiComs bought go down in value
That's what Chicom deserve. If they figured that the game always favor them, they are wrong. It is a mistake to go to bed with Wall St. crooks. Wall streeters may be vain and addicted to instant gratification, but they can also backstab their clients while groveling at them.
Well they’re speaking more truth on this subject than anybody in our own government, that’s for sure.
The 10-year bond yield — the one they base 30-year-fixed mortgage rates on — is up again today for like the eighth day out of ten or something like that.
China is being screwed by Washington, not Wall Street.
What if China does become unstable? They lose trillions of dollars and are left with factories that are not useless but have markedly decreased production needs.
As most of you that have been there know, the rural communities are flooding into the cities. They need food and jobs.
If China finds itself with 25-30 million men that are unemployed and getting angry is there a way to get rid of them and also create a market?
How about the muzzies in Iran, Pakistan and throughout the middle east?
How about the Soviet Union? No way to pay the bills of the pensioners.... same with the Europeans.
What about the US? What would Obama do if we went into hype inflation and had several million unemployed that we needed to get rid of.
Sometimes war is the answer. It just depends on what the question is.
China’s 30 Million men will be pushed North into Russia. If they succeed in colonizing Siberia, good for China. If they force themselves on poor Siberian women, well more Chinese children to slave for China.
If the Russkies get pissed and make noises, China will disown these men and call them civilian mercenaries and make them cannon fodder. At the very worst, they’d have gotten rid of 30 million excess men.
Actually, I read on FR somewhere in the last year, that Russian women living in the border areas find Chinese men very desireable husbands, as they are not drunks and are grateful to find a woman.
Thanks for the ping.
Is the reason this is obvious to the Chinese because they can do math - and we can't? Or is it the "wet rice" growers mentality? We need a little of what they've got - and I'm not talking about money.
One of the recurrent themes in human history.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.