Posted on 10/06/2019 6:33:03 PM PDT by LS
https://twitter.com/freeHKer/status/1180810938548547584
"China banks are running out of cash in HKD and USD. Maximum withdrawal limit drop from USD1300 to USD38. A drop of 34 times. China financial doom day coming. @Jkylebass @GordonGChang @robert_spalding
+1
Ehh, they’ll only be overdrawn again an hour later.
You know, I wonder what HSBC makes of all this.
We saw off the branch they're sitting on.
“What happen when they say “Pay us, NOW!”
Nothing. They hold bonds with defined maturity dates out a decade or so.
L
They own $1.5 trillion of the US debt, or like 19%. What happen when they say “Pay us, NOW!”
We'd point at them and laugh. China's longterm strategy is to keep the Yuan price-stable against the USD and the way they've done that is to plow billions of those trade surplus dollars into US gubmint debt. That keeps their job growth going up, and prevents slowdowns that would cause their entire scheme to implode. They are and have been rats on a wheel, and Congress has as a consequence no self-control vis a vis the federal deficit. The tariff fight is important to both sides, but much more important, long term, to the Chinese, and they know that ultimately they must lose it. Mitigating our leverage is the big climb in US petroleum production and exports.
I am sure the Chinese can print more currency.
Everything is negotiable.
Excellent comment!
China’s money market liquidity ample ahead of week-long holiday
September 26
Liquidity conditions in China’s interbank money market improved toward the end of the quarter, though demand for cash picked up just days ahead of the week-long National Day holiday.
Ample conditions had prompted the People’s Bank of China (PBOC) to drain excess funds from the banking system at the end of the week, but traders expect financial institutions to have no problems meeting month-end requirements and the central bank’s quarterly health checks.
“And market sentiment was also stable following the PBOC’s continuous fund injections through 14-day reverse repos to ensure (cash conditions) after the National Day break.”
China’s markets will be closed from Oct. 1 to 7 to mark the 70th anniversary of the founding of the People’s Republic of China.
Just a Hong Kong thing (HK has it’s own central bank/banking system separate from mainland China).
https://news.rthk.hk/rthk/en/component/k2/1484658-20191006.htm
https://www.marketwatch.com/story/guid/FB4F6788-E88C-11E9-AB27-C15AE00E0BA9
We just pay them in gold plated tungsten bars we got from someone else.
Who knows if it is even true, but if true they are nervous as hell.
https://www.hkma.gov.hk/eng/news-and-media/press-releases/2019/10/20191006-3/
06 Oct 2019
HKMA clarifies rumours on withdrawal regulation
The HKMA noticed rumours about HKMA implementing a new regulation to cap the daily amount of cash withdrawal from banks. The message is totally fake and unfounded.
The Hong Kong banking system is robust and sound. Banks have sufficient supply of banknotes to meet the needs of the public.
The HKMA urges the public to be vigilant about malicious rumours and verify information carefully.
Hong Kong Monetary Authority
6 October 2019
> What happen when they say “Pay us, NOW!”
Say “I’d rather owe it to you than cheat you out of it”
Pretty well thought out post. I served in HK as a foreign service specialist information management in the IPC.
I seriously doubt the US is doing what you State but would put my money on the Anglos queen, NZ, and the aussies.
Our leverage is economic. We could slow imports by imposing 100% inspections instead of radiation checking and spot checks.
Also, Trump can peg the RMB at a level thru the G-nations and world bank.
Our spooks in HK are all declared as such so we are not spying.
China Is Breeding Giant Pigs That Are as Heavy as Polar Bears
In a farm deep in the southern region of China lives a very big pig that’s as heavy as a polar bear.
The 500 kilogram, or 1,102 pound, animal is part of a herd that’s being bred to become giant swine. At slaughter, some of the pigs can sell for more than 10,000 yuan ($1,399), over three times higher than the average monthly disposable income in Nanning, the capital of Guangxi province where Pang Cong, the farm’s owner, lives.
While Pang’s pigs may be an extreme example of the lengths farmers are going to fill China’s swelling pork shortage problem, the idea that bigger is better has been spreading across the country, home to the world’s most voracious consumers of the meat.
https://finance.yahoo.com/news/china-breeding-giant-pigs-size-002722756.html
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.
