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CNN website hacked: "China dumps all bonds"

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Re: CNN website hacked: "China dumps all bonds"

#61

Post by JackFr »

rtpg wrote: post #51
streetnigga wrote: post #37

Earlier quoted context omitted.

Pretty shitty. Can't think of a theater of operation where the consensus for deployment is done with the support of the host nation's public. That is excluding the secret laws often shrouding the justification for the programs themselves.

All places where the US deploys drones has the support of the host nation's gov't at least. Drones are extremely easy to shoot down currently, and would not be effective in any hostile environment. Not sure if that's what you meant, but it's an interesting point to consider.

I think 'relatively' easier would be more precise than 'extremely' extremely.

Re: CNN website hacked: "China dumps all bonds"

#62

Post by waylandsmithers »

foz wrote: post #39
duiker101 wrote: post #28

Earlier quoted context omitted.

wow and there is basically nothing about Ukraine... this crazy!

unfortunately, today, it's all about the clicks.

For anyone who didn't catch it, the onion story about Miley at the VMAs: http://www.theonion.com/articles/let-me-explain-why-miley-cy... "by" the managing editor of cnn.com

Re: CNN website hacked: "China dumps all bonds"

#63

Post by fennecfoxen »

scoofy wrote: post #11
bsaul wrote: post #9

Is it me or would "china dumping us bonds" have absolutely no effect since the Federal reserve is already the only one buying us bonds in massive quantities ?

Umm... no, it's you. It would have a massive impact on the price of treasuries world wide.

No, the Fed has unlimited buying power for Treasuries, so it could prop up the price as long as it wanted.

The question is what the side effects of that would be. So perhaps I should say they can prop up the nominal price for as long as it wanted. The real price can't be manipulated so easily.

Re: CNN website hacked: "China dumps all bonds"

#64

Post by fennecfoxen »

bsaul wrote: post #46
wintersFright wrote: post #27

Earlier quoted context omitted.

If China dumped bonds, why would anyone buy debt from the USG when they can get it cheap on the open market that has just had 1 trillion dumped in it. The fed steps in, mops up all excess demand so Uncle Sam can keep on spending beyond its tax revenue. Very quickly, no one is going to accept USD in trade as the value plummets. The USD being world reserve currency has been printed far beyond the needs for internal dom…

My point was exactly what your last sentence said : they are already printing so much money and it doesn't provide inflation. Your point i guess is that china has 1 trillion in USD, which is such a huge amount that emitting this on the market will create inflation. I just checked the numbers, and in 2011 the second quantitative easing (aka "printing money") was 600 billions, and the third is 40 billions every month.…

Yeah, the Fed buys crazy lots of bonds, and it's pretty impressive that it hasn't caused inflation yet. A big bond dump by China may be enough to actually trigger a substantial piece of inflation - heck, maybe you'd see an instant jump in prices of a few percent overnight, and the US would have to make some painful choices about spending and debt...

But it wouldn't in and of itself cause catastrophic hyperinflation. Not on an ongoing basis, anyway. Continuing inflation requires continuing increases in the monetary base (or monetary velocity).

Re: CNN website hacked: "China dumps all bonds"

#65

Post by jackgavigan »

fennecfoxen wrote: post #59
jackgavigan wrote: post #50

Earlier quoted context omitted.

Well, a lot of banks, insurance companies, trust funds, mutual funds, pension funds, social security funds, other countries and individuals own US treasury bonds. China's holdings are significant - over $1.3tn or around 7.5% of all US government debt. If they were to dump all of it onto the market at once (a crazy idea which they would never do), the simple excess of supply over demand would cause Treasury prices to…

> I don't know what the practicalities are of the Fed buying $1.3tn at short notice (e.g. whether they can simply create that many dollars out of thin air and credit them to their counterparties' accounts) Ah. Yes. They can totally do that. So the question is whether their extant open-market operations which aim for a particular interest rate on Treasuries will in fact buy the bonds quickly enough that substantial ma…

> Ah. Yes. They can totally do that.

Yeah, I had been thinking about how TARP required congressional approval but, of course, the _reason_ it required congressional approval was because the "troubled assets" in question were not Treasuries. A little investigation reveals that section 14 of the Federal Reserve Act authorises the Fed "To buy and sell, at home or abroad, bonds and notes of the United States".

> ..whether the increased supply of USD would have a higher velocity than it did when China was sitting on it, which could lead to a weaker dollar or substantial inflation.

Weaker dollar? Definitely. I expect the ECB and banks of England and Japan would buy dollars - both to help the US stabilise markets and to avoid their own currencies growing tooo strong - but I'd still expect to see a significant drop in the value of USD. 20%, maybe?

Substantial inflation? Inflation is a longer-term, delayed reaction sort of thing so I reckon it would depend on what happened subsequently.

The funny thing is that, having been through the turmoil of September 2008, the financial system is probably better prepared and positioned now, than it was before the Financial Crisis, to deal with the turmoil that would be caused by China dumping its Treasury holdings.

Re: CNN website hacked: "China dumps all bonds"

#67

Post by Shivetya »

coldpie wrote: post #60
Shivetya wrote: post #42

Earlier quoted context omitted.

Welcome to Zucker's quest to make CNN relevant.... which apparently means being the online version of the supermarket check out line. The FoxNews site has more important international stories than CNN, I am assuming CNN expecting readers to click the World tab. Out front, between Drudge and Google News I get all the leads I need.

You depend on Drudge for facts? Yikes.

Leads, not facts.

I had not been to CNN or FoxNews websites in months, unless I get pushed there by Google News or Drudge and was surprised at the state of CNN.

Yes Drudge is a valid place for links, it all depends on what you are going there for. I go there for links to world news events and the like. To dismiss that site out of hand which so many here do is irrational at best. I learned long ago, many sites have good stories, bad stories, and bait stories.

Re: CNN website hacked: "China dumps all bonds"

#68

Post by _wp3r »

Shivetya wrote: post #67
coldpie wrote: post #60

Earlier quoted context omitted.

You depend on Drudge for facts? Yikes.

Leads, not facts. I had not been to CNN or FoxNews websites in months, unless I get pushed there by Google News or Drudge and was surprised at the state of CNN. Yes Drudge is a valid place for links, it all depends on what you are going there for. I go there for links to world news events and the like. To dismiss that site out of hand which so many here do is irrational at best. I learned long ago, many sites have go…

I assume you know this but, customizing your google news to filter out all the major outlets will give you a very different news cycle.

Re: CNN website hacked: "China dumps all bonds"

#69

Post by vonzeppelin »

eliasmacpherson wrote: post #53
rtpg wrote: post #51

Earlier quoted context omitted.

All places where the US deploys drones has the support of the host nation's gov't at least. Drones are extremely easy to shoot down currently, and would not be effective in any hostile environment. Not sure if that's what you meant, but it's an interesting point to consider.

So the governments of Somalia, Afghanistan, Pakistan, Iraq, Yemen and Libya all support US drones being deployed. Where would I go to verify this? Seems a reconnaissance drone was downed over Iran, who have demanded an apology[0]. Perhaps you only mean drones capable of attack. [0] https://en.wikipedia.org/wiki/Iran%E2%80%93U.S._RQ-170_incid...

I know Yemen does (or did) support the US drones being deployed.

http://www.washingtonpost.com/world/middle_east/when-us-dron...

Re: CNN website hacked: "China dumps all bonds"

#70

Post by penguindev »

bsaul wrote: post #9

Is it me or would "china dumping us bonds" have absolutely no effect since the Federal reserve is already the only one buying us bonds in massive quantities ?

Nail on the head award.

Apparently you haven't taken enough college/graduate studies to unlearn common sense. Unfortunately, that disqualifies you from being an elite.

To get those kind of jobs, you need to be for example a phd 'expert' on the great depression such that you come as close as possible to repeating it (biggest national housing and credit bubbles ever).

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