281–290 of 408 posts
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Are you predicting large scale deflation? That’s the opposite of what we’re seeing now, but if it happens the fed can fix it by just printing money.
That's exactly why they're printing so much money. Deflation would cause a deflation spiral - i.e. a short squeeze on the dollar. They can keep doing it, but it's basically a mass-scale confiscation of assets from people. Not sure if that's the goal.
> Shares of developer Fantasia Holdings (1777.HK) plunged 50% on Wednesday after it said there was no guarantee it would be able to meet its other financial obligations following a missed payment of $205.7 million due on Oct. 4. Watch the US bond market closely. Today saw a sharp selloff on the 10-year maturity, a favorite "asset" of foreign governments and companies. When those organizations get into trouble, they s…
Chinese state banks have substantial dollar deposits (it is largely state banks that are lending to companies like Evergrande offshore). The PBOC stopped issuing notes (and sterilising the dollar inflow) years ago, and onshore dollar deposits are above $1tn. A lot of the stuff you read about this online is exceptionally misleading (I have no idea why there is this cottage industry of "economic experts" who don't unde…
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I think she might just have forgotten to date this one? Most other articles back to 2020 seem to have publish dates. Either way this one seems to be from April 2020.
It does seem to be a trend in less-than-professional blogs. Although I'd assume, maybe it helps with traffic? Presumably people would be more interested in reading a previous financial post, if they didn't know it was 2 years old.
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Sorry, that’s a lot of words that doesn’t address anything. This guy is under investigation because of his actions. Bringing up a bunch of irrelevant facts just serves as a distraction. Seriously, the U.S. causing the global financial crisis is your counter argument?
At the moment like this, I always wonder: Should I spend time engaging with this guy who appears not reading, or cherrypicking statements, or plainly trolling?... I think the one sentence explanation is that your statement is plainly racism. Even in this post, you admitted that "This guy is under investigation", yet you are able to use a unsubstantiated charge, and blow it into China economic warfare, and label that…
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Wait a second... How is Evergrande's foreign debt default translate to "waging economic warfare via equity markets"? Of course China is responsible for its own domestic debt, because evergrande borrowed from state-backed banks. Are foreign debters also backed by Chinese government? Are you suggesting Chinese government should take responsibility for foreign investors? And "for a while"? Name another case remotely mat…
Since you asked, China basically had an inside man in the Californian pension system and purchased a large amount of Chinese tech stocks. Beijing then pulled the carpet out from under them, causing 400B in US pension losses: https://www.google.com/amp/s/californiaglobe.com/articles/us...
https://californiaglobe.com/fr/us-pension-funds-lost-400-bil...
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> It'll sting some emerging market investors, but I don't think you'll see a massive knock-on here. China has basically been the single biggest driver of global growth over the past decade. Its highly overleveraged real estate market is a huge threat to its overall economy, and that has plenty of potential to create a massive knock-on. https://www.reuters.com/article/us-economy-global-kemp-colum...
> China has basically been the single biggest driver of global growth over the past decade. Its highly overleveraged real estate market is a huge threat to its overall economy, and that has plenty of potential to create a massive knock-on. I think what Western observers are missing is that this was an intentional "let fail" in order to prevent this structural weakness from becoming too big of a problem. China is basi…
I think what you're missing is that China isn't even out of the first inning on this one.
Evergrande hasn't even failed yet. It's a slow-moving trainwreck and the contagion is only just starting to spread.
https://www.reuters.com/world/china/chinas-state-council-hel...
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Chinese state banks have substantial dollar deposits (it is largely state banks that are lending to companies like Evergrande offshore). The PBOC stopped issuing notes (and sterilising the dollar inflow) years ago, and onshore dollar deposits are above $1tn. A lot of the stuff you read about this online is exceptionally misleading (I have no idea why there is this cottage industry of "economic experts" who don't unde…
What do you mean that they stopped issuing notes. China expands their money supply almost as much by percentage compared to the US.
Around 2017/18, the PBOC stopped doing this and allowed domestic banks to retain and invest the dollar earnings that exporters deposited. China's money supply is not directly related to the US money supply. China's capital account is still closed. All that has changed is that the onshore dollar market has increased (the PBOC retains a huge amount of control over lending decisions, Chinese state banks are not investing in US markets, it is being retained in China).
This is not even frontpage of ft, bloomberg etc. Bloomberg Europe TV station talks about Johnson & Johnson factory problems in China but not Evergrande. My reading from above pieces of information: it's not that important yet. Maybe they will pay late again as they did previously when they were late one day.
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They can keep issuing them. They will not have the same value, though.
No this rule does not apply in the US. The US has printed 20% of all dollars ever existed since 2020. Check the exchange rates with any other currency, EUR, British sterling, Chinese RMB. Did it become cheaper? Of course not. We will always buy USD, because it has as a collateral 8billion lives.
you're comparing fiat to fiat...try broadening the asset mix and USD is no longer favorable
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It does seem to be a trend in less-than-professional blogs. Although I'd assume, maybe it helps with traffic? Presumably people would be more interested in reading a previous financial post, if they didn't know it was 2 years old.
The "best" policy is for content to start out dated and then simply erase the dates as it gets older.