China cuts interest rates again to spur economic growth

[Harsh Jones]

The CCP Boyz in Beijing reach for the finance textbooks too every time they have a crisis on their hands which explains why the Boyz have hit a great wall. It was going to happen sooner or later and everyone knew it. The CCP has never known what it was doing, supposed to be doing, could do or not do.

Beijing needs now more than ever to be unmistakably clear to the G-20 (the other 19) that it is a serious participant in the international system, that it can manage and control its own economy, and that it is not going to start any kind of currency or financial wars. Beijing knows the stakes and that Beijing will need to work within existing systems, structures, institutions.

The shocked global reaction and its aftermath in the markets was caused by the CCP Boyz stepping outside the rules both wantonly and brazenly. It is an unwritten rule at the IMF and outward globally that a currency depreciating is reluctantly acceptable if the depreciation simply reflects market realities as the realities may be. However, the serious trouble comes when a government consciously and deliberately acts to depreciate its currency. Governments acting is what's called a currency war and nobody wants an active race to depreciate currencies. The tit-for-tat of a currency war also implies protective tariffs and seriously devalued assets across the board.

The CCP Boyz need to show now they are not the incompetents they appear to be, or that they are not as malevolent as their action was to actively depreciate the yuan. It is well known and appreciated by the G-20 there are powerful anti-reform forces in Zhongnanhai (Beijing's Kremlin) that are insisting on a depreciation of 10% total now and even as much as 15% now.

Which is why people have been asking for weeks where Xi Jinping is because no one has seen him or heard from him about the current crashes and calamities. PM Li Kejiang has been out of sight and hearing too. Xi showed up for the military parade last Thursday then disappeared as quickly as he appeared. This is serious enough without the kind of CCP factional infighting between pro and anti reformers that led up to the 1989 Tiananmen Square turning point.

So many words, so very little substance.

Still waiting for your version of how the balance of payments system works... And how it pertains to China and the US in the current state of affairs..

[Publicus]

The CCP Boyz in Beijing reach for the finance textbooks too every time they have a crisis on their hands which explains why the Boyz have hit a great wall. It was going to happen sooner or later and everyone knew it. The CCP has never known what it was doing, supposed to be doing, could do or not do.

Beijing needs now more than ever to be unmistakably clear to the G-20 (the other 19) that it is a serious participant in the international system, that it can manage and control its own economy, and that it is not going to start any kind of currency or financial wars. Beijing knows the stakes and that Beijing will need to work within existing systems, structures, institutions.

The shocked global reaction and its aftermath in the markets was caused by the CCP Boyz stepping outside the rules both wantonly and brazenly. It is an unwritten rule at the IMF and outward globally that a currency depreciating is reluctantly acceptable if the depreciation simply reflects market realities as the realities may be. However, the serious trouble comes when a government consciously and deliberately acts to depreciate its currency. Governments acting is what's called a currency war and nobody wants an active race to depreciate currencies. The tit-for-tat of a currency war also implies protective tariffs and seriously devalued assets across the board.

The CCP Boyz need to show now they are not the incompetents they appear to be, or that they are not as malevolent as their action was to actively depreciate the yuan. It is well known and appreciated by the G-20 there are powerful anti-reform forces in Zhongnanhai (Beijing's Kremlin) that are insisting on a depreciation of 10% total now and even as much as 15% now.

Which is why people have been asking for weeks where Xi Jinping is because no one has seen him or heard from him about the current crashes and calamities. PM Li Kejiang has been out of sight and hearing too. Xi showed up for the military parade last Thursday then disappeared as quickly as he appeared. This is serious enough without the kind of CCP factional infighting between pro and anti reformers that led up to the 1989 Tiananmen Square turning point.

So many words, so very little substance.

Still waiting for your version of how the balance of payments system works... And how it pertains to China and the US in the current state of affairs..

Barking up the wrong tree and in the wrong forest besides. The idiocentricity in these issues rests with the Austrian school of Mad Max ZeroHedge economics, not with anything I might have, given especially I am in the global mainstream.

There are textbooks in finance and there is reality and I deal decisively in the latter. Your scheme is your scheme. Enjoy it.

[Scott]

An inflammatory post has been removed.

[capcc76]

The CCP Boyz in Beijing reach for the finance textbooks too every time they have a crisis on their hands which explains why the Boyz have hit a great wall. It was going to happen sooner or later and everyone knew it. The CCP has never known what it was doing, supposed to be doing, could do or not do.

Beijing needs now more than ever to be unmistakably clear to the G-20 (the other 19) that it is a serious participant in the international system, that it can manage and control its own economy, and that it is not going to start any kind of currency or financial wars. Beijing knows the stakes and that Beijing will need to work within existing systems, structures, institutions.

The shocked global reaction and its aftermath in the markets was caused by the CCP Boyz stepping outside the rules both wantonly and brazenly. It is an unwritten rule at the IMF and outward globally that a currency depreciating is reluctantly acceptable if the depreciation simply reflects market realities as the realities may be. However, the serious trouble comes when a government consciously and deliberately acts to depreciate its currency. Governments acting is what's called a currency war and nobody wants an active race to depreciate currencies. The tit-for-tat of a currency war also implies protective tariffs and seriously devalued assets across the board.

The CCP Boyz need to show now they are not the incompetents they appear to be, or that they are not as malevolent as their action was to actively depreciate the yuan. It is well known and appreciated by the G-20 there are powerful anti-reform forces in Zhongnanhai (Beijing's Kremlin) that are insisting on a depreciation of 10% total now and even as much as 15% now.

Which is why people have been asking for weeks where Xi Jinping is because no one has seen him or heard from him about the current crashes and calamities. PM Li Kejiang has been out of sight and hearing too. Xi showed up for the military parade last Thursday then disappeared as quickly as he appeared. This is serious enough without the kind of CCP factional infighting between pro and anti reformers that led up to the 1989 Tiananmen Square turning point.

So many words, so very little substance.

Still waiting for your version of how the balance of payments system works... And how it pertains to China and the US in the current state of affairs..

Barking up the wrong tree and in the wrong forest besides. The idiocentricity in these issues rests with the Austrian school of Mad Max ZeroHedge economics, not with anything I might have, given especially I am in the global mainstream.

There are textbooks in finance and there is reality and I deal decisively in the latter. Your scheme is your scheme. Enjoy it.

Lol, he has now migrated to infowars. Wow, impressive!

[Harsh Jones]

The CCP Boyz in Beijing reach for the finance textbooks too every time they have a crisis on their hands which explains why the Boyz have hit a great wall. It was going to happen sooner or later and everyone knew it. The CCP has never known what it was doing, supposed to be doing, could do or not do.

Beijing needs now more than ever to be unmistakably clear to the G-20 (the other 19) that it is a serious participant in the international system, that it can manage and control its own economy, and that it is not going to start any kind of currency or financial wars. Beijing knows the stakes and that Beijing will need to work within existing systems, structures, institutions.

The shocked global reaction and its aftermath in the markets was caused by the CCP Boyz stepping outside the rules both wantonly and brazenly. It is an unwritten rule at the IMF and outward globally that a currency depreciating is reluctantly acceptable if the depreciation simply reflects market realities as the realities may be. However, the serious trouble comes when a government consciously and deliberately acts to depreciate its currency. Governments acting is what's called a currency war and nobody wants an active race to depreciate currencies. The tit-for-tat of a currency war also implies protective tariffs and seriously devalued assets across the board.

The CCP Boyz need to show now they are not the incompetents they appear to be, or that they are not as malevolent as their action was to actively depreciate the yuan. It is well known and appreciated by the G-20 there are powerful anti-reform forces in Zhongnanhai (Beijing's Kremlin) that are insisting on a depreciation of 10% total now and even as much as 15% now.

Which is why people have been asking for weeks where Xi Jinping is because no one has seen him or heard from him about the current crashes and calamities. PM Li Kejiang has been out of sight and hearing too. Xi showed up for the military parade last Thursday then disappeared as quickly as he appeared. This is serious enough without the kind of CCP factional infighting between pro and anti reformers that led up to the 1989 Tiananmen Square turning point.

So many words, so very little substance.

Still waiting for your version of how the balance of payments system works... And how it pertains to China and the US in the current state of affairs..

Barking up the wrong tree and in the wrong forest besides. The idiocentricity in these issues rests with the Austrian school of Mad Max ZeroHedge economics, not with anything I might have, given especially I am in the global mainstream.

There are textbooks in finance and there is reality and I deal decisively in the latter. Your scheme is your scheme. Enjoy it.

Your scheme is your scheme. Enjoy it.

No sir

This is not my scheme. This is not an Austrian scheme. This is reality sir. The mainstream identifies with this system.

You can accept reality or run away from it. You appear to be running away from it.

[Harsh Jones]

The CCP Boyz in Beijing reach for the finance textbooks too every time they have a crisis on their hands which explains why the Boyz have hit a great wall. It was going to happen sooner or later and everyone knew it. The CCP has never known what it was doing, supposed to be doing, could do or not do.

Beijing needs now more than ever to be unmistakably clear to the G-20 (the other 19) that it is a serious participant in the international system, that it can manage and control its own economy, and that it is not going to start any kind of currency or financial wars. Beijing knows the stakes and that Beijing will need to work within existing systems, structures, institutions.

The shocked global reaction and its aftermath in the markets was caused by the CCP Boyz stepping outside the rules both wantonly and brazenly. It is an unwritten rule at the IMF and outward globally that a currency depreciating is reluctantly acceptable if the depreciation simply reflects market realities as the realities may be. However, the serious trouble comes when a government consciously and deliberately acts to depreciate its currency. Governments acting is what's called a currency war and nobody wants an active race to depreciate currencies. The tit-for-tat of a currency war also implies protective tariffs and seriously devalued assets across the board.

The CCP Boyz need to show now they are not the incompetents they appear to be, or that they are not as malevolent as their action was to actively depreciate the yuan. It is well known and appreciated by the G-20 there are powerful anti-reform forces in Zhongnanhai (Beijing's Kremlin) that are insisting on a depreciation of 10% total now and even as much as 15% now.

Which is why people have been asking for weeks where Xi Jinping is because no one has seen him or heard from him about the current crashes and calamities. PM Li Kejiang has been out of sight and hearing too. Xi showed up for the military parade last Thursday then disappeared as quickly as he appeared. This is serious enough without the kind of CCP factional infighting between pro and anti reformers that led up to the 1989 Tiananmen Square turning point.

So many words, so very little substance.

Still waiting for your version of how the balance of payments system works... And how it pertains to China and the US in the current state of affairs..

Barking up the wrong tree and in the wrong forest besides. The idiocentricity in these issues rests with the Austrian school of Mad Max ZeroHedge economics, not with anything I might have, given especially I am in the global mainstream.

There are textbooks in finance and there is reality and I deal decisively in the latter. Your scheme is your scheme. Enjoy it.

Lol, he has now migrated to infowars. Wow, impressive!

Wikipedia is inforwars ? That's news to me.

Is there something that people aren't understanding ? This is the balance of payment system and just because it challenges what you thought was reality, does not make it Austrian, infowarish or conspiratorial.

[Publicus]

My most recent posts have noted the textbook character of the posts dealing with bookkeeping, accounting; processes and proceedures to categorize transactions and exchanges of a various kind.

The posts that presume to 'teach class' are a presentation of a knowledge already acquired. They speak under the feet of the topic and the posters. The recitation posts add or advance nothing about the thread or the topics that exist within the parameters of the thread. The recitation posts provide no insights, understanding or applications relevant or material to the topic.

Basic facts are moreover denied by the poster, in particular, the poster outright denies that the Fed holds US Treasuries sold to foreign buyers, issuing notes of purchase to the buyers instead; that the Fed maintains a Foreign Account Holdings of these purchases, and that the Fed keeps the foreign-purchased US Treasury instruments in its New York bank in vaults deep into the bedrock beneath it. That POTUS is authorized by law, and in some specific instances mandated by law, to freeze any US Treasury instrument, such as a T-Bill, for any time for any reason for any period of time, to include a timely report to the Congress on any such action. In short, if POTUS orders the TreasSec to freeze the US Treasury instruments purchased by the Boyz in Beijing, the Boyz are prohibited any and all transactions affecting the instruments. The CCP Boyz can't do anything with US Treasuries if POTUS puts a freeze on 'em. All of this and more well surpass the elemental debit-credit-explanation character of the posts by the expert from the Austrian school of a Zero Hedge et al post America wasteland economics.

The immediate concern of the G-20 from the meetings last weekend of finance ministers and central bankers in Turkey is that the CCP Boyz strode out of the bounds of the accepted international system when the Boyz simply and out of the blue began depreciating their yuan. Governments and markets accept a currency depreciation that is naturally occurring, i.e., due to market forces as the market forces may be. Governments acting to depreciate their currency however is an entirely different matter because governments acting makes depreciation an act of initiating and conducting currency wars. That the Boyz were stunned by the strong adverse reaction globally (G-20) is not encouraging in respect of the CCP Boyz' sensibilities or sensitivities to the immediate and direct impact globally of their radical unilateral surprise and arbitrary action.

During the present commotion occurring in the CCP China its principal leaders have been absent to each the domestic and international audience, respectively. Both audiences are nervous and concerned in the extreme about developments in the CCP China. Xi Jinping is invisible as is PM Li Kejiang. No one knows what is going on in Beijing or what to expect. It is well known the Politburo has a substantial and significant number of anti-reform hard liners who want the depreciation now and want it up towards 10 percent to as much as 20% now.

Meanwhile the apparatchics of the CCP's People's Bank of China have been left to hold an occasion press meeting to utter platitudes and generalities. The Boyz need now to make clear they will not start any currency or financial wars. The G-20 need to know the economy reformers Xi and Li are at the top of their game instead of seeming to be under seize domestically and lost globally. It is concomitantly revealing that the only public statements from the White House and TreasDep concerning the depreciation and the ongoing China calamities of the summer are the brief, subdued and subtle urgings that the necessary reforms of the economy can and do continue to be sought.

Xi is scheduled to arrive in Washington via Seattle in time for the UN General Assembly speeches by heads of government later this month. Prez Obama has only two main items to discuss with Xi on his first official state visit to Washington, the CCP economy and CCP cybertheft. They will smile a lot but it won't be friendly unless Xi comes clean.

Edited September 8, 2015 by Publicus

[Naam]

China’s foreign-exchange reserves plunged by a record amount in August, underscoring the strain endured by the country’s central bank as it intervened intensely to prop up the yuan.

The People’s Bank of China said Monday that its reserves fell by $93.9 billion, the biggest-ever monthly drop in dollar terms and the largest in percentage terms since May 2012. The decline in China’s foreign-currency reserves has accelerated, deepening a trend that illustrates the pressures of the country’s slowdown, rising capital outflows and expectations for monetary tightening in the U.S.

http://www.wsj.com/articles/china-august-forex-reserves-down-by-93-9-billion-as-pboc-intervenes-1441614856

poor CCP boyz

[Harsh Jones]

My most recent posts have noted the textbook character of the posts dealing with bookkeeping, accounting; processes and proceedures to categorize transactions and exchanges of a various kind.

The posts that presume to 'teach class' are a presentation of a knowledge already acquired. They speak under the feet of the topic and the posters. The recitation posts add or advance nothing about the thread or the topics that exist within the parameters of the thread. The recitation posts provide no insights, understanding or applications relevant or material to the topic.

Basic facts are moreover denied by the poster, in particular, the poster outright denies that the Fed holds US Treasuries sold to foreign buyers, issuing notes of purchase to the buyers instead; that the Fed maintains a Foreign Account Holdings of these purchases, and that the Fed keeps the foreign-purchased US Treasury instruments in its New York bank in vaults deep into the bedrock beneath it. That POTUS is authorized by law, and in some specific instances mandated by law, to freeze any US Treasury instrument, such as a T-Bill, for any time for any reason for any period of time, to include a timely report to the Congress on any such action. In short, if POTUS orders the TreasSec to freeze the US Treasury instruments purchased by the Boyz in Beijing, the Boyz are prohibited any and all transactions affecting the instruments. The CCP Boyz can't do anything with US Treasuries if POTUS puts a freeze on 'em. All of this and more well surpass the elemental debit-credit-explanation character of the posts by the expert from the Austrian school of a Zero Hedge et al post America wasteland economics.

The immediate concern of the G-20 from the meetings last weekend of finance ministers and central bankers in Turkey is that the CCP Boyz strode out of the bounds of the accepted international system when the Boyz simply and out of the blue began depreciating their yuan. Governments and markets accept a currency depreciation that is naturally occurring, i.e., due to market forces as the market forces may be. Governments acting to depreciate their currency however is an entirely different matter because governments acting makes depreciation an act of initiating and conducting currency wars. That the Boyz were stunned by the strong adverse reaction globally (G-20) is not encouraging in respect of the CCP Boyz' sensibilities or sensitivities to the immediate and direct impact globally of their radical unilateral surprise and arbitrary action.

During the present commotion occurring in the CCP China its principal leaders have been absent to each the domestic and international audience, respectively. Both audiences are nervous and concerned in the extreme about developments in the CCP China. Xi Jinping is invisible as is PM Li Kejiang. No one knows what is going on in Beijing or what to expect. It is well known the Politburo has a substantial and significant number of anti-reform hard liners who want the depreciation now and want it up towards 10 percent to as much as 20% now.

Meanwhile the apparatchics of the CCP's People's Bank of China have been left to hold an occasion press meeting to utter platitudes and generalities. The Boyz need now to make clear they will not start any currency or financial wars. The G-20 need to know the economy reformers Xi and Li are at the top of their game instead of seeming to be under seize domestically and lost globally. It is concomitantly revealing that the only public statements from the White House and TreasDep concerning the depreciation and the ongoing China calamities of the summer are the brief, subdued and subtle urgings that the necessary reforms of the economy can and do continue to be sought.

Xi is scheduled to arrive in Washington via Seattle in time for the UN General Assembly speeches by heads of government later this month. Prez Obama has only two main items to discuss with Xi on his first official state visit to Washington, the CCP economy and CCP cybertheft. They will smile a lot but it won't be friendly unless Xi comes clean.

the poster outright denies that the Fed holds US Treasuries sold to foreign buyers, issuing notes of purchase to the buyers instead; that the Fed maintains a Foreign Account Holdings of these purchases, and that the Fed keeps the foreign-purchased US Treasury instruments in its New York bank in vaults deep into the bedrock beneath it.

No this is wrong. You are getting the gold standard years mixed up with the post 1971 years. The only thing stored in the vaults at the FRBNY is gold.

China owns its treasuries and can do whatever the hell it wants with them. If it did not own them, then how could it hide some of them in Belgium ? (no this isn't a Zerohedge article) And this is just one of the many examples I can bring up. You've brought nothing up to support your claims.

http://www.bloomberg.com/news/articles/2014-07-27/china-hides-treasury-buys-in-belgium-chart-of-the-day

China Hides Treasury Buys in Belgium: Chart of the Day

The CHART OF THE DAY tracks a 41 percent surge in Belgian ownership of U.S. bonds in the five months through May to $362.4 billion. This came at a time when China, the largest foreign holder of Treasuries, kept its official stockpile around $1.27 trillion. Belgium is home to Euroclear Bank SA, a provider of securities settlements for foreign lenders, which indicates the increase in holdings reflects global rather than local demand, said David Woo, BofA’s head of global rates and currencies.

“Holdings in Belgium have skyrocketed,” New York-based Woo said in a July 24 e-mail interview. “China is the only foreign official player that fits the Belgium numbers.”

And for whats under the Fed bank of NY

From the Feds website:

Although the Federal Reserve does not own any gold, the Federal Reserve Bank of New York acts as the custodian of gold owned by account holders such as the U.S. government, foreign governments, other central banks, and official international organizations. No individuals or private sector entities are permitted to store gold in the vault of the Federal Reserve Bank of New York or at any Federal Reserve Bank.

A small portion of the gold held by the U.S. Treasury (roughly $600 million in book value)--about five percent--is held in custody for the Treasury by the Federal Reserve Banks, as fiscal agents of the United States.

[ExpatOilWorker]

Does it really matter if the Treasure bills are embedded deep in the New York bedrock, stitched into Jinpingpongs mattress or with his mia-noi in Belgium?

China has gone through a development similar to post war Europe. It was hellish in 1945, things got better in the 50, then there was the golden years of the 60, but soon there was belt tightening in the 70 and 80.

China have had 20+ years of solid growth, but now the export driven boom years are over. The Chinese will have to get use to cut each others hair, serve dim sum and live with a normal 2-3% growth rate.

The interesting part is to see how they will manage or mismanage this transition.

[Publicus]

My most recent posts have noted the textbook character of the posts dealing with bookkeeping, accounting; processes and proceedures to categorize transactions and exchanges of a various kind.

The posts that presume to 'teach class' are a presentation of a knowledge already acquired. They speak under the feet of the topic and the posters. The recitation posts add or advance nothing about the thread or the topics that exist within the parameters of the thread. The recitation posts provide no insights, understanding or applications relevant or material to the topic.

Basic facts are moreover denied by the poster, in particular, the poster outright denies that the Fed holds US Treasuries sold to foreign buyers, issuing notes of purchase to the buyers instead; that the Fed maintains a Foreign Account Holdings of these purchases, and that the Fed keeps the foreign-purchased US Treasury instruments in its New York bank in vaults deep into the bedrock beneath it. That POTUS is authorized by law, and in some specific instances mandated by law, to freeze any US Treasury instrument, such as a T-Bill, for any time for any reason for any period of time, to include a timely report to the Congress on any such action. In short, if POTUS orders the TreasSec to freeze the US Treasury instruments purchased by the Boyz in Beijing, the Boyz are prohibited any and all transactions affecting the instruments. The CCP Boyz can't do anything with US Treasuries if POTUS puts a freeze on 'em. All of this and more well surpass the elemental debit-credit-explanation character of the posts by the expert from the Austrian school of a Zero Hedge et al post America wasteland economics.

The immediate concern of the G-20 from the meetings last weekend of finance ministers and central bankers in Turkey is that the CCP Boyz strode out of the bounds of the accepted international system when the Boyz simply and out of the blue began depreciating their yuan. Governments and markets accept a currency depreciation that is naturally occurring, i.e., due to market forces as the market forces may be. Governments acting to depreciate their currency however is an entirely different matter because governments acting makes depreciation an act of initiating and conducting currency wars. That the Boyz were stunned by the strong adverse reaction globally (G-20) is not encouraging in respect of the CCP Boyz' sensibilities or sensitivities to the immediate and direct impact globally of their radical unilateral surprise and arbitrary action.

During the present commotion occurring in the CCP China its principal leaders have been absent to each the domestic and international audience, respectively. Both audiences are nervous and concerned in the extreme about developments in the CCP China. Xi Jinping is invisible as is PM Li Kejiang. No one knows what is going on in Beijing or what to expect. It is well known the Politburo has a substantial and significant number of anti-reform hard liners who want the depreciation now and want it up towards 10 percent to as much as 20% now.

Meanwhile the apparatchics of the CCP's People's Bank of China have been left to hold an occasion press meeting to utter platitudes and generalities. The Boyz need now to make clear they will not start any currency or financial wars. The G-20 need to know the economy reformers Xi and Li are at the top of their game instead of seeming to be under seize domestically and lost globally. It is concomitantly revealing that the only public statements from the White House and TreasDep concerning the depreciation and the ongoing China calamities of the summer are the brief, subdued and subtle urgings that the necessary reforms of the economy can and do continue to be sought.

Xi is scheduled to arrive in Washington via Seattle in time for the UN General Assembly speeches by heads of government later this month. Prez Obama has only two main items to discuss with Xi on his first official state visit to Washington, the CCP economy and CCP cybertheft. They will smile a lot but it won't be friendly unless Xi comes clean.

the poster outright denies that the Fed holds US Treasuries sold to foreign buyers, issuing notes of purchase to the buyers instead; that the Fed maintains a Foreign Account Holdings of these purchases, and that the Fed keeps the foreign-purchased US Treasury instruments in its New York bank in vaults deep into the bedrock beneath it.

No this is wrong. You are getting the gold standard years mixed up with the post 1971 years. The only thing stored in the vaults at the FRBNY is gold.

China owns its treasuries and can do whatever the hell it wants with them. If it did not own them, then how could it hide some of them in Belgium ? (no this isn't a Zerohedge article) And this is just one of the many examples I can bring up. You've brought nothing up to support your claims.

http://www.bloomberg.com/news/articles/2014-07-27/china-hides-treasury-buys-in-belgium-chart-of-the-day

China Hides Treasury Buys in Belgium: Chart of the Day

The CHART OF THE DAY tracks a 41 percent surge in Belgian ownership of U.S. bonds in the five months through May to $362.4 billion. This came at a time when China, the largest foreign holder of Treasuries, kept its official stockpile around $1.27 trillion. Belgium is home to Euroclear Bank SA, a provider of securities settlements for foreign lenders, which indicates the increase in holdings reflects global rather than local demand, said David Woo, BofAs head of global rates and currencies.

Holdings in Belgium have skyrocketed, New York-based Woo said in a July 24 e-mail interview. China is the only foreign official player that fits the Belgium numbers.

And for whats under the Fed bank of NY

From the Feds website:

Although the Federal Reserve does not own any gold, the Federal Reserve Bank of New York acts as the custodian of gold owned by account holders such as the U.S. government, foreign governments, other central banks, and official international organizations. No individuals or private sector entities are permitted to store gold in the vault of the Federal Reserve Bank of New York or at any Federal Reserve Bank.

A small portion of the gold held by the U.S. Treasury (roughly $600 million in book value)--about five percent--is held in custody for the Treasury by the Federal Reserve Banks, as fiscal agents of the United States.

The Austrian school has been out to lunch for quite a period now but they really shouldn't have missed the fact the Fed keeps US Treasuries purchased by any and all foreigners, and that it keeps the T-Bills at the Fed New York bank in Manhattan. It's kept in the Fed Foreign Account Holdings, as in custody. Getting this mixed up with the Fed's custodial holdings of foreign gold puts one in another ballpark completely.

So of the $3 Trillion of foreign-bought US Treasuries as of September 3 last week and in the custody of the Fed, the CCP Boyz have a USD value of something like $1.15 Trillion. Japan has a value of pretty much the same amount.

FRED = Federal Reserve Economic Data system, which as of September 3rd last week showed that.....

Securities Held in Custody for Foreign Official and International Accounts - Marketable U.S. Treasury Securities

2015-09-02: 3,001,386 Millions of Dollars (+ see more)

Weekly, As of Wednesday, Not Seasonally Adjusted, WMTSECL1, Updated: 2015-09-03 3:47 PM CDT

Board of Governors of the Federal Reserve System (US), Memorandum item: Securities Held in Custody for Foreign Official and International Accounts - Marketable U.S. Treasury Securities [WMTSECL1], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/WMTSECL1/, September 8, 2015.

Securities Held in Custody for Foreign Official and International Accounts - Marketable U.S. Treasury Securities

2015-09-02: 3,016,891 Millions of Dollars (+ see more)

https://research.stlouisfed.org/fred2/series/WMTSECL1

The CCP Boyz in Beijing can take possession of their US Treasuries at any time but it will not be any secret if they do and it would not exempt the Boyz from having the Treasuries frozen by order of POTUS if that should happen. The Boyz could try to sell them but anyone engaging to buy frozen Treasuries would quickly find a US Treasury Dept posse riding hard on 'em.

Putin last year yanked $130 bn of purchased Treasuries out of the New York Fed back to Russia but has been unable or unwilling to transactthem with anyone. This is the case despite the Russian economy continuing to tank. The amount equals 85% of Russian purchases of US Treasuries. The Fed tracks these accounts itself and via Belgium.

Transfer of more than $100bn out of US prompts speculation Russia is moving funds out of reach of possible sanctions

Friday 14 March 2014

Financial markets were on high alert last night over the Ukraine crisis amid speculation that the Kremlin had pulled its vast US treasury bill holdings out of New York.

News that more than $100bn had been shifted out of the US in the past week at least three times more than at any time since the financial crisis prompted fears that Russia is preparing for a western backlash in the form of sanctions and is moving its funds to safe havens beyond US influence.

The bills were transferred out of the US central bank's deposit vaults last week, as the Obama administration increased the threat of sanctions in response to the growing crisis in east Ukraine.

http://www.theguardian.com/business/2014/mar/14/russia-us-treasury-bill-bonds-ukraine-sanctions

As we know, sanctions require a vote of the Congress, however, POTUS has existing statutory authority to order a freeze on transacting US Treasuries purchased by foreign governments, persons, entities. This includes USG bonds withdrawn from the Foreign Account Holdings of theFed, which, as the news report notes, are in the Fed bank in Manhattan.

POTUS has the authority to issue an executive order freeze because the EXO can be executed swiftly, immediately, in specific terms, as a need may arise, in contrast to congress having to act.

The CCP Boyz are not following in the footsteps of Putin in pulling T-Bills out of the New York Fed. Putin has gained nothing from it, thereason being Putin is a wild man. The CCP Boyz are instead being called on in the current ongoing China calamities to be responsible and reliable members of the international financial order, so trying to imitate Putin would do the Boyz no good. Neither is Beijing staring sanctions in the face the way Putin was when he desperately moved the bulk of Russia's T-Bills to Moscow.

Reply post delayed due to severe pervasive technical factors external of ThaiVisa. The Boyz are working hard these dayz. The chart is demolished but the post finally got in, despite a disordered format.

Edited September 9, 2015 by Publicus

[Harsh Jones]

The Austrian school has been out to lunch for quite a period now but they really shouldn't have missed the fact the Fed keeps US Treasuries purchased by any and all foreigners, and that it keeps the T-Bills at the Fed New York bank in Manhattan. It's kept in the Fed Foreign Account Holdings, as in custody. Getting this mixed up with the Fed's custodial holdings of foreign gold puts one in another ballpark completely.

So of the $3 Trillion of foreign-bought US Treasuries as of September 3 last week and in the custody of the Fed, the CCP Boyz have a USD value of something like $1.15 Trillion. Japan has a value of pretty much the same amount.

FRED = Federal Reserve Economic Data system, which as of September 3rd last week showed that.....

Securities Held in Custody for Foreign Official and International Accounts - Marketable U.S. Treasury Securities

2015-09-02: 3,001,386 Millions of Dollars (+ see more)

Weekly, As of Wednesday, Not Seasonally Adjusted, WMTSECL1, Updated: 2015-09-03 3:47 PM CDT

Board of Governors of the Federal Reserve System (US), Memorandum item: Securities Held in Custody for Foreign Official and International Accounts - Marketable U.S. Treasury Securities [WMTSECL1], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/WMTSECL1/, September 8, 2015.

Securities Held in Custody for Foreign Official and International Accounts - Marketable U.S. Treasury Securities

2015-09-02: 3,016,891 Millions of Dollars (+ see more)

https://research.stlouisfed.org/fred2/series/WMTSECL1

The CCP Boyz in Beijing can take possession of their US Treasuries at any time but it will not be any secret if they do and it would not exempt the Boyz from having the Treasuries frozen by order of POTUS if that should happen. The Boyz could try to sell them but anyone engaging to buy frozen Treasuries would quickly find a US Treasury Dept posse riding hard on 'em.

Putin last year yanked $130 bn of purchased Treasuries out of the New York Fed back to Russia but has been unable or unwilling to transactthem with anyone. This is the case despite the Russian economy continuing to tank. The amount equals 85% of Russian purchases of US Treasuries. The Fed tracks these accounts itself and via Belgium.

Transfer of more than $100bn out of US prompts speculation Russia is moving funds out of reach of possible sanctions

Friday 14 March 2014

Financial markets were on high alert last night over the Ukraine crisis amid speculation that the Kremlin had pulled its vast US treasury bill holdings out of New York.

News that more than $100bn had been shifted out of the US in the past week at least three times more than at any time since the financial crisis prompted fears that Russia is preparing for a western backlash in the form of sanctions and is moving its funds to safe havens beyond US influence.

The bills were transferred out of the US central bank's deposit vaults last week, as the Obama administration increased the threat of sanctions in response to the growing crisis in east Ukraine.

http://www.theguardian.com/business/2014/mar/14/russia-us-treasury-bill-bonds-ukraine-sanctions

As we know, sanctions require a vote of the Congress, however, POTUS has existing statutory authority to order a freeze on transacting US Treasuries purchased by foreign governments, persons, entities. This includes USG bonds withdrawn from the Foreign Account Holdings of theFed, which, as the news report notes, are in the Fed bank in Manhattan.

POTUS has the authority to issue an executive order freeze because the EXO can be executed swiftly, immediately, in specific terms, as a need may arise, in contrast to congress having to act.

The CCP Boyz are not following in the footsteps of Putin in pulling T-Bills out of the New York Fed. Putin has gained nothing from it, thereason being Putin is a wild man. The CCP Boyz are instead being called on in the current ongoing China calamities to be responsible and reliable members of the international financial order, so trying to imitate Putin would do the Boyz no good. Neither is Beijing staring sanctions in the face the way Putin was when he desperately moved the bulk of Russia's T-Bills to Moscow.

Reply post delayed due to severe pervasive technical factors external of ThaiVisa. The Boyz are working hard these dayz. The chart is demolished but the post finally got in, despite a disordered format.

the fact the Fed keeps US Treasuries purchased by any and all foreigners, and that it keeps the T-Bills at the Fed New York bank in Manhattan.

That is simply untrue. Only a pittance of treasuries are held at FBNY. And any threat of stealing these securities would make the full faith of the system go up in smoke. (even though they can access the purchasing power through QE anyway)

Euroclear says likely cause of Belgium's big rise in Treasuries

Belgium-based clearinghouse Euroclear said it is likely responsible for that country's large holdings of U.S. Treasuries, which have increased substantially in the last several months, a spokesman told Reuters on Friday.

According to U.S. Treasury data released Thursday, Belgium's holdings of U.S. Treasury debt were $381.4 billion in March, compared with $166.8 billion as of August 2013.

Belgium-based Euroclear holds assets on behalf of more than 2,000 financial institutions in more than 90 countries, as well as for millions of retail investors.

The spokesman would not comment as to whether there's been a sudden surge of business from customers holding Treasuries. The company has about 24.2 trillion euros ($33 trillion) of all assets in custody.

It's kept in the Fed Foreign Account Holdings, as in custody. Getting this mixed up with the Fed's custodial holdings of foreign gold puts one in another ballpark completely.

And it was you who was getting that mixed up. Not me.

The CCP Boyz in Beijing can take possession of their US Treasuries at any time but it will not be any secret if they do and it would not exempt the Boyz from having the Treasuries frozen by order of POTUS if that should happen. The Boyz could try to sell them but anyone engaging to buy frozen Treasuries would quickly find a US Treasury Dept posse riding hard on 'em.

They have possession of them now. And they are doing whatever the hell they want with them. They already dumped 200 billion worth that they were holding in Belgium.

[Publicus]

The Boyz sold $317 bn of US Treasuries from August last year to August this year, and another $94 bn during last month, August. The Boyz backed off their fit of anger last week to quit on their wack job notion to sell another $500 bn during the next six weeks. The G-20 meeting in Turkey told the Boyz to chill out. The Boyz need to face reality...

"Frequent intervention will burn foreign reserves rapidly and tighten the onshore market liquidity," said Zhou Hao, senior economist at Commerzbank in Singapore.

Read more: http://www.marketstoday.net/news/china-s-forex-reserves-fall-record-94-bn-in-august/11604/en/#ixzz3lGLTl9YE

The G-20 are super concerned about China, not the United States.

US Debt has remained level throughout this year as rates have bobbed around 2%.

One direct effect expected when the Fed raises rates is that the stumbling and falling emerging economies will further submerge. The Fed can raise its rate next week, or in December, or January, or Q1 next year, whenever. One direct effect is clear and that is on the submerging markets. It is a question of time before Beijing's quits its currency maneuvres and lets the yuan depreciate. This time, instead of reversing the rise of the yuan, it is expected to depreciate slow and steady.

“Were the Fed to begin hiking U.S. overnight rates this fall, the U.S. dollar would be perceived globally as holding its purchasing power value best, and would remain strong or appreciate in the foreign exchange market. Global capital held in other currencies, such as the euro, yen and renminbi, would be exchanged for U.S. dollars.”

“All the usual suspects within the ‘dollar’s’ orbit have been plied to new levels of warning or devaluation,” writes Jeffrey Snider of Alhambra Investment Partners. He notes that virtually all risk proxies vulnerable to dollar scarcity have been clobbered to record lows: the ruble, the Brazilian real, and U.S. junk bonds. On the other hand, dollars are heavily bought in the interbank market in London.

So despite some collateral damage to overvalued and over-levered U.S. markets, a Fed rate hike would improve the standing of the dollar and the United States, which has tolerated Russian and Chinese attacks on the dollar for the longest time.

http://www.marketoracle.co.uk/Article52171.html

[sandyf]

China is planning to launch its own oil benchmark in October, similar to Brent and WTI, striving for a more important role in establishing crude prices. Unlike the Western benchmarks, the Chinese contracts will be nominated in the yuan, not the US dollar.

Shanghai International Energy Exchange sent a draft futures contract to market players in August, Reutersreported quoting sources.

Oil futures will be the first Chinese contract to permit direct participation of foreign investors. However, this is not the first step for greater oil market openness in China. In July, Beijing allowed private companies to import crude. Previously importing was only done by state-run majors such as Sinopec, China National Petroleum Corporation and China National Offshore Oil Corporation, the Xinhua news agency reported.

[Harsh Jones]

The Boyz sold $317 bn of US Treasuries from August last year to August this year, and another $94 bn during last month, August. The Boyz backed off their fit of anger last week to quit on their wack job notion to sell another $500 bn during the next six weeks. The G-20 meeting in Turkey told the Boyz to chill out. The Boyz need to face reality...

"Frequent intervention will burn foreign reserves rapidly and tighten the onshore market liquidity," said Zhou Hao, senior economist at Commerzbank in Singapore.

Read more: http://www.marketstoday.net/news/china-s-forex-reserves-fall-record-94-bn-in-august/11604/en/#ixzz3lGLTl9YE

The G-20 are super concerned about China, not the United States.

US Debt has remained level throughout this year as rates have bobbed around 2%.

One direct effect expected when the Fed raises rates is that the stumbling and falling emerging economies will further submerge. The Fed can raise its rate next week, or in December, or January, or Q1 next year, whenever. One direct effect is clear and that is on the submerging markets. It is a question of time before Beijing's quits its currency maneuvres and lets the yuan depreciate. This time, instead of reversing the rise of the yuan, it is expected to depreciate slow and steady.

“Were the Fed to begin hiking U.S. overnight rates this fall, the U.S. dollar would be perceived globally as holding its purchasing power value best, and would remain strong or appreciate in the foreign exchange market. Global capital held in other currencies, such as the euro, yen and renminbi, would be exchanged for U.S. dollars.”

“All the usual suspects within the ‘dollar’s’ orbit have been plied to new levels of warning or devaluation,” writes Jeffrey Snider of Alhambra Investment Partners. He notes that virtually all risk proxies vulnerable to dollar scarcity have been clobbered to record lows: the ruble, the Brazilian real, and U.S. junk bonds. On the other hand, dollars are heavily bought in the interbank market in London.

So despite some collateral damage to overvalued and over-levered U.S. markets, a Fed rate hike would improve the standing of the dollar and the United States, which has tolerated Russian and Chinese attacks on the dollar for the longest time.

http://www.marketoracle.co.uk/Article52171.html

"Frequent intervention will burn foreign reserves rapidly and tighten the onshore market liquidity," said Zhou Hao, senior economist at Commerzbank in Singapore.

Funny how he says "burn forign reserves". Selling their dollar assets to buy their own currency, puts dollars on the open market. When there is more sellers then buyers, the price goes down. You are the one who also beleives the Fed will raise rates this month. So thats the 2 biggest buyers of this debt for the last 30 years putting it into reverse and selling. Expecting a stronger dollar from this means you failed economics 101.

One direct effect expected when the Fed raises rates is that the stumbling and falling emerging economies will further submerge. The Fed can raise its rate next week, or in December, or January, or Q1 next year, whenever.

Again. The act of raising rates by the Fed means they are selling dollar denominated debt. Like the 80's, this will put the bond trend in reverse. Rather then front run the Fed into US debt, the market will be front running them out. If you think this will result in a stronger dollar, you failed econ 101 and history 101.

The Fed lowered rates in 2000 and didn't start raising them till 2004 till 2006. Look at the chart below. The dollar fell. The dollar also fell through the late 60's and all through the 70's as rates went from 1% all the way to 18%.

[Naam]

some "Boyz" should use a calculator if they are not able to do a little and simple 'rithmatic' by heart. they are also well advised to check once i a while whether their lopsided claims clash with each other

Publicus, on 29 Aug 2015 - 14:37, said:

The Boyz have already begun converting their $4.7 Trillion of forex into yuan for emergency domestic use. The past three months their forex reserves have reduced to $3.6 Trillion and counting. They're moving their reserves in hits of $100-$300 billion a shot, which means by mid next year the CCP Boyz may well be paddling up the Chao Phraya towing long boats of USD and asking the brass hats for remote beachfront property.

Publicus, on 10 Sept 2015 - 00:57, said:

The Boyz sold $317 bn of US Treasuries from August last year to August this year, and another $94 bn during last month, August. The Boyz backed off their fit of anger last week to quit on their wack job notion to sell another $500 bn during the next six weeks. The G-20 meeting in Turkey told the Boyz to chill out. The Boyz need to face reality...

[Publicus]

The Boyz sold $317 bn of US Treasuries from August last year to August this year, and another $94 bn during last month, August. The Boyz backed off their fit of anger last week to quit on their wack job notion to sell another $500 bn during the next six weeks. The G-20 meeting in Turkey told the Boyz to chill out. The Boyz need to face reality...

"Frequent intervention will burn foreign reserves rapidly and tighten the onshore market liquidity," said Zhou Hao, senior economist at Commerzbank in Singapore.

Read more: http://www.marketstoday.net/news/china-s-forex-reserves-fall-record-94-bn-in-august/11604/en/#ixzz3lGLTl9YE

The G-20 are super concerned about China, not the United States.

US Debt has remained level throughout this year as rates have bobbed around 2%.

One direct effect expected when the Fed raises rates is that the stumbling and falling emerging economies will further submerge. The Fed can raise its rate next week, or in December, or January, or Q1 next year, whenever. One direct effect is clear and that is on the submerging markets. It is a question of time before Beijing's quits its currency maneuvres and lets the yuan depreciate. This time, instead of reversing the rise of the yuan, it is expected to depreciate slow and steady.

“Were the Fed to begin hiking U.S. overnight rates this fall, the U.S. dollar would be perceived globally as holding its purchasing power value best, and would remain strong or appreciate in the foreign exchange market. Global capital held in other currencies, such as the euro, yen and renminbi, would be exchanged for U.S. dollars.”

“All the usual suspects within the ‘dollar’s’ orbit have been plied to new levels of warning or devaluation,” writes Jeffrey Snider of Alhambra Investment Partners. He notes that virtually all risk proxies vulnerable to dollar scarcity have been clobbered to record lows: the ruble, the Brazilian real, and U.S. junk bonds. On the other hand, dollars are heavily bought in the interbank market in London.

So despite some collateral damage to overvalued and over-levered U.S. markets, a Fed rate hike would improve the standing of the dollar and the United States, which has tolerated Russian and Chinese attacks on the dollar for the longest time.

http://www.marketoracle.co.uk/Article52171.html

"Frequent intervention will burn foreign reserves rapidly and tighten the onshore market liquidity," said Zhou Hao, senior economist at Commerzbank in Singapore.

Funny how he says "burn forign reserves". Selling their dollar assets to buy their own currency, puts dollars on the open market. When there is more sellers then buyers, the price goes down. You are the one who also beleives the Fed will raise rates this month. So thats the 2 biggest buyers of this debt for the last 30 years putting it into reverse and selling. Expecting a stronger dollar from this means you failed economics 101.

One direct effect expected when the Fed raises rates is that the stumbling and falling emerging economies will further submerge. The Fed can raise its rate next week, or in December, or January, or Q1 next year, whenever.

Again. The act of raising rates by the Fed means they are selling dollar denominated debt. Like the 80's, this will put the bond trend in reverse. Rather then front run the Fed into US debt, the market will be front running them out. If you think this will result in a stronger dollar, you failed econ 101 and history 101.

The Fed lowered rates in 2000 and didn't start raising them till 2004 till 2006. Look at the chart below. The dollar fell. The dollar also fell through the late 60's and all through the 70's as rates went from 1% all the way to 18%.

Got an 'A' in Economics 101 and it wasn't at the Austrian school of crash the United States economics thereby saving "true" capitalism for the world forever (as if Putin and the CCP Boyz were going to subscribe).

It's referred to as the Austrian school of economics but they are in fact bookkeepers, accountants, line graph makers, doomsday prophets and assorted other 19th century men of the green eyeshades, They're light on scientific paradigms and protocols yet heavy on other people's data. The Austrian school Boyz are big on forecasting, but the description might be a generous way to say these Boyz are in to prophecy and wet dreams.

It is indeed best at a public forum to go lightly on the line graphs, bar charts, frequency tables and all the rest of it, inserting one instead only occasionally and to make a central point rather than dropping them in as if they were Russian paratroopers swarming aground in east Ukraine.

The point of this post is that the reading of charts and graphs, then reciting long established principles of supply and demand, market economics, theories of finance, trotting out recent history too and all the rest of it do not particularly account for present geopolitical or geo-economic trends or developments. A line graph about deflating the yuan is for instance a far cry from a comprehensive discussion of the devaluation and of the myriad present factors and implications domestic and foreign that are central to the depreciation.

The graphs and claims centered always on the United States miss completely where the action is occurring, which is in the CCP China. But then again the Austrian school Boyz are obsessively focused against the United States and are compulsively driven.

Russia has not cashed the $130 bn of T-Bills it withdrew from Fed custody in March last year because it absolutely needs the USD reserve at its CB. The Boyz presently are in a similar situation, their currency wobbling, markets crashing, bubbles cascading down upon them, which means they too need every penny of every USD they have. The focus here is on the emerging markets that are steadily yet sharply submerging.

The G-20 told the CCP Boyz at the meeting in Turkey of finance ministers and central bankers last weekend to get a grip over there. That is first and foremost. Everything else from the Austrian economists of the destruction of the United States and abolishing monetarism is marginal prophecy based in wish and the reactionary views of 19th century men who sip absinthe.

[boomerangutang]

It's all Greek to me.

[Harsh Jones]

Got an 'A' in Economics 101 and it wasn't at the Austrian school of crash the United States economics thereby saving "true" capitalism for the world forever (as if Putin and the CCP Boyz were going to subscribe).

It's referred to as the Austrian school of economics but they are in fact bookkeepers, accountants, line graph makers, doomsday prophets and assorted other 19th century men of the green eyeshades, They're light on scientific paradigms and protocols yet heavy on other people's data. The Austrian school Boyz are big on forecasting, but the description might be a generous way to say these Boyz are in to prophecy and wet dreams.

It is indeed best at a public forum to go lightly on the line graphs, bar charts, frequency tables and all the rest of it, inserting one instead only occasionally and to make a central point rather than dropping them in as if they were Russian paratroopers swarming aground in east Ukraine.

The point of this post is that the reading of charts and graphs, then reciting long established principles of supply and demand, market economics, theories of finance, trotting out recent history too and all the rest of it do not particularly account for present geopolitical or geo-economic trends or developments. A line graph about deflating the yuan is for instance a far cry from a comprehensive discussion of the devaluation and of the myriad present factors and implications domestic and foreign that are central to the depreciation.

The graphs and claims centered always on the United States miss completely where the action is occurring, which is in the CCP China. But then again the Austrian school Boyz are obsessively focused against the United States and are compulsively driven.

Russia has not cashed the $130 bn of T-Bills it withdrew from Fed custody in March last year because it absolutely needs the USD reserve at its CB. The Boyz presently are in a similar situation, their currency wobbling, markets crashing, bubbles cascading down upon them, which means they too need every penny of every USD they have. The focus here is on the emerging markets that are steadily yet sharply submerging.

The G-20 told the CCP Boyz at the meeting in Turkey of finance ministers and central bankers last weekend to get a grip over there. That is first and foremost. Everything else from the Austrian economists of the destruction of the United States and abolishing monetarism is marginal prophecy based in wish and the reactionary views of 19th century men who sip absinthe.

Ok then tell me again that the US dollar will go up when the 2 biggest buyers in the last 10 years (China and the Fed) both become sellers. China is selling and you are believing the BS that the Fed will start selling this month. You keynesian followers of economic witchcraft have been trolled by the Fed since 2008.

The Fed will hike rates -- in 2011 - Dec. 15, 2009

money.cnn.com/2009/12/15/news/economy/fed_rates/index.htm?...

Dec 15, 2009 - Economists say they think the chairman and many other policymakers ... "Am I worried about the Fed being behind the curve in raising rates?

When will the Fed hike interest rates? - Apr. 12, 2012

money.cnn.com/2012/.../federal-reserve-interest-rates-2014/index.htm

2012-04-12 · ... his colleagues may have to raise rates as early as ... 2012: 5:29 PM ET. Related ... Federal Reserve officials argue publicly about the c

1. Federal Reserve expects not to raise rates until 2013 ...
   www.bbc.co.uk/news/business-14467241

   2011-08-09 · ... Federal Reserve says it expects to keep US interest rates at their current low levels until at least the middle of 2013. ... Federal Reserve expects ...

   BMO forecasts key interest rate hike by July, 2014 - CTV News

   www.ctvnews.ca/.../bmo-forecasts-key-interest-rate-hike-by-july-2014-1....

   Jun 19, 2013 - The global economy is headed for a better year in 2014 on the back of ... 28, 2012. ... rate in July 2014, a full year before the U.S. Federal Reserve, BMO's ... the bank will likely stand back and won't raise interest rates as much ...

[Publicus]

It's all Greek to me.

That is more than understandable. The bookkeepers keep talking about debits and credits and balances along with equal and opposite actions-reactions blah blurp and keep dropping in charts of this that or the other thing. They focus on the United States when the action is in the CCP China.

The story here is that the CCP Boyz are beginning to get their due, which is an economy paradigm that was destined to collapse at some point before 2020, and that point in time is the present going forward.

It had been called for several years the CCP would start to face the music in 2016. It is Q3 of 2015 and the music is has already begun to play, all of it being no surprise to the global markets. The global equities markets which are naturally squeamish are just about the only markets that are not handling it in a reasonable stride.

In the US the music stopped in Q3 2008 but in the CCP China there wasn't any music until now. And the band has just begun to play on.

When Xi arrives in Washington next week Prez Obama will show Xi sanctions the CCP Boyz will get if the cybertheft does not stop. No body in his right mind envies the CCP Boyz or thinks the CCP have the upper hand.

The CCP are on the ropes and the ropes are only getting more tangled and knotted. All of the bookkeepers' debits and credits not withstanding.

[NeverSure]

Because the Balance of Payment accounts are based on double-entry bookkeeping, the annual current account and capital account have to net to zero, so that any current account deficit is offset one-to-one by a capital account surplus (deficit) and the balance of payments therefore always nets out to (equals) zero. And that's why it's called the "balance" of payments, because once we account for trade flows and capital flows, everything balances, and there are no deficits or surpluses on a net basis.

The way the US sells Treasuries to China means the US has a "capital account surplus." And China has a "capital account deficit." You see, when the US ships currency to China in exchange for real stuff, that's a deficit for the US. But when China ships currency to the US in exchange for Treasury bonds, that's a deficit for China.

Class dismissed

"Class dismissed."

It's obvious you were never an international banker as I was. Put a sock in it, boy.

[NeverSure]

"only the US-Dollar is the international unit of trade"

bla-bla yakety-yak yeah right!

-the japanese importer of BMWs from Germany changes his ¥EN into USD, transfers them to Germany where BMW changes the Dollars into €URos "because only...",

-the French companies delivering beef to Germany require the German importer to pay in US-Dollars which they exchange then into €URos because "only the US-Dollar...",

-the German specialised machinery manufacturer demands from their Australian clients payment in US-Dollars because its employees demand to be paid in US-Dollars and because "only the US-Dollar...",

-the swap agreements between China and Brazil, India, Chile, Argentina, Australia and Russia (just to name a few), valued several hundred billion Dollars were all signed exclusively for the purpose that the CCP boyz and the counter-signatories can enjoy parties where champagne and caviar is served and not to substitute payments in USD because "only the US-Dollar..."

China began the process of internationalizing its currency in November 2010 when then-Russian Prime Minister Vladimir Putin and Chinese Premier Wen Jiabao announced that Russia and China had decided to use their own national currencies for bilateral trade, instead of the U.S. dollar. The yuan started trading against the ruble in the Chinese bank market in Shanghai immediately, and in December 2010, began trading on the Moscow Interbank Currency Exchange.

http://www.forbes.com/sites/jackperkowski/2012/06/26/china-busy-signing-currency-deals/

That's not how it works, Naam. If China was literally going to pay in USD it would need currency but it instead buys the Dollar as treasury bills to give it CREDIT in USD. It has to have Foreign Exchange Reserves in order to Exchange - Do Business internationally. Almost no one will trade on the strength of the Yuan.

Now when Russia trades Rubble for Yuan, who's the loser?? Don't give me that shit comparison.

I'm Yuan Up now and you're Yuan Down.

[NeverSure]

Because the Balance of Payment accounts are based on double-entry bookkeeping, the annual current account and capital account have to net to zero, so that any current account deficit is offset one-to-one by a capital account surplus (deficit) and the balance of payments therefore always nets out to (equals) zero. And that's why it's called the "balance" of payments, because once we account for trade flows and capital flows, everything balances, and there are no deficits or surpluses on a net basis.

The way the US sells Treasuries to China means the US has a "capital account surplus." And China has a "capital account deficit." You see, when the US ships currency to China in exchange for real stuff, that's a deficit for the US. But when China ships currency to the US in exchange for Treasury bonds, that's a deficit for China.

Class dismissed

Now let's hold that class, because you don't understand a damn thing about double entry bank bookkeeping while I was a bank auditor.

You have it all wrong because bank accounting is the inverse of our accounting. It's a mirror image and it is confusing at first. You have to learn to breath it because at first it doesn't make sense, even to an accountant.

For instance, if you or I have cash on hand it's an asset and it's a liquid asset at that. But the cash the bank has in its vault is a liability because it is a debt - money held for and owed to depositors. The more cash a bank has on hand the deeper in debt it is for that cash. It belongs to depositors and is owed.

If you or I have a bank loan it is a liability because it is owed to the bank. That same loan and all such loans on the bank's books are bank assets because they are owed to the bank. They are like accounts receivable to the bank.

Now walk into a bank on your first day and try to post the general ledger and you will fail. You will be asking "Is this a debit or a credit" for the entries because it's hard to figure out until you "own" the concept. If I put through a debit to suspense and offset it (double entry) with a credit to cash to balance cash overnight until we can fix it, did I raise or lower the bank's assets or liabilities? What does a credit to cash mean?

Well anywhere else a credit to cash would raise the cash total on the books and increase assets. But in this case since cash is a liability (red ink literally) crediting it with a black credit will lower the amount of the (red, liability) cash and the bank will have a lower total of liabilities - cash.

Now please go play with the other boys, will you?

Cheers.

[Publicus]

China is planning to launch its own oil benchmark in October, similar to Brent and WTI, striving for a more important role in establishing crude prices. Unlike the Western benchmarks, the Chinese contracts will be nominated in the yuan, not the US dollar.

Shanghai International Energy Exchange sent a draft futures contract to market players in August, Reutersreported quoting sources.

Oil futures will be the first Chinese contract to permit direct participation of foreign investors. However, this is not the first step for greater oil market openness in China. In July, Beijing allowed private companies to import crude. Previously importing was only done by state-run majors such as Sinopec, China National Petroleum Corporation and China National Offshore Oil Corporation, the Xinhua news agency reported.

Better luck to 'em this time.

The previous two efforts did not go well to say the least.

The first attempt lasted a year and half then shut down due to volatility. The second one went bust because the ceiling on futures got so astronomically shattered the Boyz had to throw billions at a bailout.

The Boyz import 60% of their oil so they undoubtedly will have a say in the market to include benchmarks, as well they should have. But in any currency? As we've seen the yuan is not the best currency to bring out -- or not even a good one. The crises in Russia and in China have pushed this along sooner than had been planned which is not the best start to it either. Then there is the fact that...

Beijing has taken a cautious stance on the liberalisation of the futures market, with chaotic trading and scandals having accompanied earlier stages of its development.

A report by the U.S.-China Security Review Commission, a group created by Congress, warned that China's increasing need for imported energy has given it an incentive to become closer to countries supporting terrorism like Iran, Iraq and Sudan:

"A key driver in China's relations with terrorist-sponsoring governments is its dependence on foreign oil to fuel its economic development. This dependency is expected to increase over the coming decade."

http://www.iags.org/china.htm

This new project is a modest start which cuts both ways. Don't want to initially overreach as the Boyz had done in the past, yes, but 100 barrels to a sale isn't quite the 1000 the US moves per transaction.

US to Declare Energy Independence by 2017?

https://blogs.cfainstitute.org/investor/2015/09/10/us-to-declare-energy-independence-by-2017/

[Harsh Jones]

it instead buys the Dollar as treasury bills to give it CREDIT in USD.

Nope. Dollars just pile up at the central bank of China because it has a huge trade SURPLUS with the US. So it has to do something with the US dollars. So it vendor finances the US.

Switzerland has a huge trade surplus with the US yet it holds more Euro's on its balance sheet then USD

And the balance sheet... 50% Euros

[Harsh Jones]

Because the Balance of Payment accounts are based on double-entry bookkeeping, the annual current account and capital account have to net to zero, so that any current account deficit is offset one-to-one by a capital account surplus (deficit) and the balance of payments therefore always nets out to (equals) zero. And that's why it's called the "balance" of payments, because once we account for trade flows and capital flows, everything balances, and there are no deficits or surpluses on a net basis.

The way the US sells Treasuries to China means the US has a "capital account surplus." And China has a "capital account deficit." You see, when the US ships currency to China in exchange for real stuff, that's a deficit for the US. But when China ships currency to the US in exchange for Treasury bonds, that's a deficit for China.

Class dismissed

Now let's hold that class, because you don't understand a damn thing about double entry bank bookkeeping while I was a bank auditor.

You have it all wrong because bank accounting is the inverse of our accounting. It's a mirror image and it is confusing at first. You have to learn to breath it because at first it doesn't make sense, even to an accountant.

For instance, if you or I have cash on hand it's an asset and it's a liquid asset at that. But the cash the bank has in its vault is a liability because it is a debt - money held for and owed to depositors. The more cash a bank has on hand the deeper in debt it is for that cash. It belongs to depositors and is owed.

If you or I have a bank loan it is a liability because it is owed to the bank. That same loan and all such loans on the bank's books are bank assets because they are owed to the bank. They are like accounts receivable to the bank.

Now walk into a bank on your first day and try to post the general ledger and you will fail. You will be asking "Is this a debit or a credit" for the entries because it's hard to figure out until you "own" the concept. If I put through a debit to suspense and offset it (double entry) with a credit to cash to balance cash overnight until we can fix it, did I raise or lower the bank's assets or liabilities? What does a credit to cash mean?

Well anywhere else a credit to cash would raise the cash total on the books and increase assets. But in this case since cash is a liability (red ink literally) crediting it with a black credit will lower the amount of the (red, liability) cash and the bank will have a lower total of liabilities - cash.

Now please go play with the other boys, will you?

Cheers.

yes yes.. All of the money the Fed printed in QE 1,2,3 and the next QE is the Feds liability. That.... is... a problem.

[Naam]

"only the US-Dollar is the international unit of trade"

bla-bla yakety-yak yeah right!

-the japanese importer of BMWs from Germany changes his ¥EN into USD, transfers them to Germany where BMW changes the Dollars into €URos "because only...",

-the French companies delivering beef to Germany require the German importer to pay in US-Dollars which they exchange then into €URos because "only the US-Dollar...",

-the German specialised machinery manufacturer demands from their Australian clients payment in US-Dollars because its employees demand to be paid in US-Dollars and because "only the US-Dollar...",

-the swap agreements between China and Brazil, India, Chile, Argentina, Australia and Russia (just to name a few), valued several hundred billion Dollars were all signed exclusively for the purpose that the CCP boyz and the counter-signatories can enjoy parties where champagne and caviar is served and not to substitute payments in USD because "only the US-Dollar..."

China began the process of internationalizing its currency in November 2010 when then-Russian Prime Minister Vladimir Putin and Chinese Premier Wen Jiabao announced that Russia and China had decided to use their own national currencies for bilateral trade, instead of the U.S. dollar. The yuan started trading against the ruble in the Chinese bank market in Shanghai immediately, and in December 2010, began trading on the Moscow Interbank Currency Exchange.

http://www.forbes.com/sites/jackperkowski/2012/06/26/china-busy-signing-currency-deals/

That's not how it works, Naam. If China was literally going to pay in USD it would need currency but it instead buys the Dollar as treasury bills to give it CREDIT in USD. It has to have Foreign Exchange Reserves in order to Exchange - Do Business internationally. Almost no one will trade on the strength of the Yuan.

Now when Russia trades Rubble for Yuan, who's the loser?? Don't give me that shit comparison.

I'm Yuan Up now and you're Yuan Down.

almost no one except the countries mentioned above with whom China has signed swap agreements and the dozen countries which will sign very soon these kind of agreements to bypass the Dollar. none of your diversional yada yada can't change that fact.

talking about shit... just look at your various ridiculous postings crowned by "only the US-Dollar is the international unit of trade" and recognise shit²

disclaimer: i too am convinced that the US-Dollar will remain for years to come not only the reserve currency but also the dominant reference currency used in bilateral trade. but that does not mean that bilateral trade can't be carried without the slightest involvement of USD.

even totally macroeconomic ignorants will realise that when looking at trades between countries which have adopted the €UR. exceptions are eggsburts such as Bill from Boise, Idaho; Buck from Duluth, Minnesota; Hank from Little Rock, Arkansas and Bubba (aka Joe) from Quails Hollow, Oregon just prove the rule

[sandyf]

China will open its domestic foreign-exchange market to overseas central banks, making it easier for other nations to hold yuan assets as Asia’s biggest economy pushes for the currency to win reserve status at the International Monetary Fund.

The country will keep the yuan stable at a reasonable, equilibrium level, Premier Li Keqiang said while announcing the easing of controls during a speech at a World Economic Forum meeting Thursday. The nation doesn’t want a currency war, he said, after the People’s Bank of China shook up global markets with a devaluation on Aug. 11. Overseas monetary authorities have already been granted access to China’s interbank bond market.

“The participation of foreign central banks will make the onshore yuan’s exchange rate more globally recognized,” said Banny Lam, co-head of research at Agricultural Bank of China International Securities in Hong Kong. “Allowing direct access gives the central banks more flexibility and control over costs, compared with going through local banks for trades. In general, it’s a positive move for yuan internationalization.”

Edited September 11, 2015 by Scott
Font

[Scott]

A post with no link to the source has been removed from view. Please post a link when quoting sources.

[Publicus]

China will open its domestic foreign-exchange market to overseas central banks, making it easier for other nations to hold yuan assets as Asia’s biggest economy pushes for the currency to win reserve status at the International Monetary Fund.

The country will keep the yuan stable at a reasonable, equilibrium level, Premier Li Keqiang said while announcing the easing of controls during a speech at a World Economic Forum meeting Thursday. The nation doesn’t want a currency war, he said, after the People’s Bank of China shook up global markets with a devaluation on Aug. 11. Overseas monetary authorities have already been granted access to China’s interbank bond market.

“The participation of foreign central banks will make the onshore yuan’s exchange rate more globally recognized,” said Banny Lam, co-head of research at Agricultural Bank of China International Securities in Hong Kong. “Allowing direct access gives the central banks more flexibility and control over costs, compared with going through local banks for trades. In general, it’s a positive move for yuan internationalization.”

The post is taken verbatim from Bloomberg News. Without a cite or any text entered by the poster, the post as it stands is PR for the CCP Boyz in Beijing.

Here is the closing quote from the Bloomberg piece which I now link...

“Thursday’s move won’t result in significant inflows in the short-run as foreign central banks probably won’t be interested in making large investments as depreciation expectations are still strong and volatility remains high,” said Irene Cheung, a currency strategist at Australia & New Zealand Banking Group Ltd. in Singapore. "This is a step toward internationalization of the yuan. The gap between onshore and offshore yuan will narrow only when China’s economic fundamentals get better."

http://www.bloomberg.com/news/articles/2015-09-10/china-to-allow-foreign-central-banks-in-onshore-currency-market

The difference in the yuan onshore rate on the mainland and the offshore rate in free market Hong Kong continues to widen. This is because the fundamentals of the CCP economy are terrible.

As the gap between the two yuan continues to widen, the CCP economy continues to tank. The gap is only widening and is widening more since the surprise shock and awe depreciation August 11th.

Yesterday the mainland yuan was at 6.3850 and the yuan in HKG was at 6.4688. The offshore yuan is off an running and the onshore yuan may never catch up to or freeze the HKG yuan. (HKG uses the HKG dollar and the CNY is traded in HKG.)

Note in the linked quote the statement that, "The gap between onshore and offshore yuan will narrow only when China’s economic fundamentals get better." The last time I recall hearing something like that was in September, 2008 just before the election when Sen John McCain uttered the famous last political words, "The fundamentals of the US economy are strong."

The fundamentals of the CCP China economy and its financial system are what put them where they are now, which is at the precipice. On the cusp.

Here is something else from Bloomberg today, September 11th.

These Four Charts Show How Obama's Leverage Over Xi Is Increasing From trade to Treasuries, the tables are turning

http://www.bloomberg.com/news/articles/2015-09-11/these-four-charts-show-how-obama-s-leverage-over-xi-is-increasing