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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
Only about 4% of US daily commerce is backed by US dollars, the vast majority of which are $1 bills. Plus, there are only two US government printing offices that make our currency, in Washington, D.C. and Fort Worth, TX. And they run at capacity just to maintain what little cash money we have.
This means that the US is very vulnerable to a “cash run” on the banks. If the public decided it needed cash now, the banks would run out very quickly.
From that point, *any* disruption to electronic transfer, which could come from any number of directions, and it wouldn’t matter if you had a million dollars in a bank, you couldn’t get to it for weeks, or maybe months.
Therefore, it is strongly recommended that you keep some money in a strongbox in a safe place where no one else can access it or prevent you from accessing it.
If there is a massive cash deflation, and businesses insist on cash, a dime could quickly be worth a dollar.
A cash deflation happened during the Great Depression, and the saying was, “You could get a pound of hamburger for a nickel, but nobody had any nickels.”
If China suddenly has a cash shortage, you will get to see what happens there, hopefully before it happens here.
One way the public might mitigate a cash shortage is for a trusted group to create “scrip”, a pseudo currency. It would be good to read up on this.
https://en.wikipedia.org/wiki/Scrip
I like Gordon Chang’s attitude, but he’s always a bit over optimistic on the “China’s going to fall apart tomorrow” stuff.
Thanks LS significant note. What’s next?
Are they really running out of money or just withholding money to put the squeeze on Hong Kong?
“They own $1.5 trillion of the US debt, or like 19%. What happen when they say “Pay us, NOW!”
They own about $1.1 trillion of the US debt, or like 5%.
If they try to sell all those treasuries at once, the market will gag, until the Federal Reserve intervenes and buys them (a fraction of the few trillion they bought during the 2008 crisis). So it would essentially be a few days of drama (just in financial circles), followed by an accounting entry on the Fed’s holdings.
China on the other hand, would then be out of hard currency accounts, with which to clear shipments at its ports. Real, essential imports, like oil and gas, could be held up, as is starting to happen in Iran.
TP?
Cash does a world of good when buying airline tickets or a berth on the next merchant vessel out.
That’s the best part - they can’t. They *HAVE* to wait for the bond to ‘mature’ aka the date the loan comes due. They cannot call it in early. All they can do is sell the bond to someone else, probably at a significant discount... which would then start depressing the market and drop the value of their current holdings further... which might make them have to sell more, etc., etc.
+1
we just print it and pray they don’t spend it
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Something is going on.... I just texted one of my employees there on WeChat and asked him is something was going on. He totally ignored my question, and kept responding to other things... said we would talk by phone tomorrow.
Whatever is going on, they don’t want to talk about it on government-monitored weChat.
Source joined Twitter in July of 2019. What evidence this person knows what he is talking about?
You’re saying it IS China banks - not Hong Kong banks... and you’re the second source on this story?
Not finding anything on google. If this were true I’m guessing it would be major news.
“I am sure the Chinese can print more currency.”
The Mainland can print a lot more of their Monopoly money (Yuan/Renminbi) - but nobody will accept that as payment for the main things they need to buy from outside of China; like oil, gas, raw materials or food.
The Hong Kong dollar is a freely convertible currency (unlike the ChiCom wampum). It has been real money - hard currency , pegged to the US Dollar. It has been the ChiCom’s main access to real hard currency.
ATMs running out of cash are just a symptom of accelerated capital flight from HK. The bigger money must find other ways out. But it could well signal that a stampede is on by the population to get out whatever real wealth they can. If the Hong Kong Monetary Authority runs out of real hard foreign reserves (they have been heading that way fast), then the Hong Kong Dollar could collapse, and they might be forced to adopt the Mainland’s currency.
That would probably mean that the Mainland would be heading toward its own foreign reserve crisis sometime later - maybe not long. Hong Kong is the goose that laid the golden eggs for the ChiComs. It looks like it is about to get cooked.
I think it’s in Hong Kong, not China proper. That’s more of a guess.
One cousin and his wife have been in Egypt since the late eighties, one and her husband in Poland since '92, and another and his wife in China since '94. (geez, thinking about back when they all went overseas in their late twenties or early thirties I feel really old) The couple who were in China moved to Hong Kong about a year ago when the job with a State industry something or other let her go and put a native Chinese in the job.
Their view from HK is very interesting as it has been about China for years. This cousin's wife, though, is singing a whole different tune now that she and hubby are in HK and planning on moving back to the US.
You could very well be right about who is behind what's going on in HK and surely are about any of our spooks who have been there very long if not all of them. All I know for sure is the way it's going is a very familiar pattern.
A pattern that some say has been around a long time, but which is now clearly marked with some very specific types of actors that haven't been around a long time as well as very new tools being used. Saying there's nothing new under the sun is a cliche' that can be applied to anything so I still say it has some unique fingerprints as coming from the same "community" or "school", if you will.
I'd like to see someone peg the RMB and HK dollar both. Seems to me that would put an awful lot of pressure on the Chinese Party leadership.
Regards
WINNING!
Chinese cash crisis - bump for later.....
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