"Figures published by the Bank for International Settlements (BIS) in October showed foreign currency loans booked in China, as well as cross-border borrowing by Chinese companies, had reached $880bn (£535bn) as of March 2013, from $270bn in 2009. Analysts say this figure is now likely to exceed $1 trillion...."
I wouldn't mind someone explaining the actual detailed settlements of these "big things" For example how Bonds could be given over to cover borrowing etc.
We've all been told that China has Xtrillion of US Gov bonds - and we know that China has been stymied (quite rightly , imho) from buying any major USA infrastructure/firms etc with those bonds - apparently they can either sit on the Bonds or go hang.
Are there rules about bailing out a commerical Chinese Bank with U$USD bonds that are held by the Chinese Gov ( albeit, that the corrupt Chinese wouldn't follow any rules)?
We've all been told that China has Xtrillion of US Gov bonds - and we know that China has been stymied (quite rightly , imho) from buying any major USA infrastructure/firms etc with those bonds - apparently they can either sit on the Bonds or go hang.
Are there rules about bailing out a commerical Chinese Bank with U$USD bonds that are held by the Chinese Gov ( albeit, that the corrupt Chinese wouldn't follow any rules)?
So, if China is now buying in heaps of "foreign currency" loans - can it pay off (or secure) these loans with $USD Bonds ? Would that mean that, by an alternative route, the Chinese fiscal mess, will be paid off in $USD - and therefore ( if the pay off is massive) dilute the worth/price of US Gov bonds - putting the USGov on the slide again? Would it be that the corrupt, idiotic Chinese criminal mess will be paid by all of us in the West getting a severe flu ?
China got gigantic surpluses. Don't worry about China. Worry about the UK and the established countries:
USA: Currency reserves=132bn----nat. debt= 17.4 Trillion----trade deficit: – 34,3 bn
U.K. : Currency reserves=144bn----nat. debt= US$ 2.03 Trillion----trade deficit: US $ -5.32 bn
Russia: Currency reserves=510bn----nat. debt=US$ 207 bn----trade surplus: US$ +16.5 bn (!)
China: Currency reserves=3.82Trillions----national debt= ~US$ 2.427 Tril----trade surplus: +256 Mill (only!)
3 comments:
In China, the PMI gauge of manufacturing fell to its lowest level since May as the authorities continued to bear down on the country’s $24 trillion (£14.7 trillion) credit boom. New export orders fell to 49.3, below the expansion line of 50. “We believe the negative impact of tighter liquidity conditions is showing on the real economy,” said Zhiwei Zhang from Nomura.
Morgan Stanley has cut its growth forecast for China to 6.6pc for the first half of 2014, warning that the country may face a rough ride trying to deleverage the economy while at the same time raising interest rates. There are widespread concerns over an estimated $1.1 trillion foreign currency debt owed by Chinese banks and companies, mostly borrowed through Hong Kong and Macau.
The US Federal Reserve insists that America’s growth has reached "escape velocity" as the housing market recovers and the shale gas boom revives large sectors of industry. Yet the picture is murky. The labour participation rate is still at a 50-year low of 62.8pc, evidence of a jobless recovery.
All key measures of the US money supply have been slowing for months. The growth rate of broad M2 measure has halved to around 5pc from 10pc two years ago, signalling a lull ahead.
In China, the PMI gauge of manufacturing fell to its lowest level since May as the authorities continued to bear down on the country’s $24 trillion (£14.7 trillion) credit boom. New export orders fell to 49.3, below the expansion line of 50. “We believe the negative impact of tighter liquidity conditions is showing on the real economy,” said Zhiwei Zhang from Nomura.
Morgan Stanley has cut its growth forecast for China to 6.6pc for the first half of 2014, warning that the country may face a rough ride trying to deleverage the economy while at the same time raising interest rates. There are widespread concerns over an estimated $1.1 trillion foreign currency debt owed by Chinese banks and companies, mostly borrowed through Hong Kong and Macau.
The US Federal Reserve insists that America’s growth has reached "escape velocity" as the housing market recovers and the shale gas boom revives large sectors of industry. Yet the picture is murky. The labour participation rate is still at a 50-year low of 62.8pc, evidence of a jobless recovery.
All key measures of the US money supply have been slowing for months. The growth rate of broad M2 measure has halved to around 5pc from 10pc two years ago, signalling a lull ahead.
In China, the PMI gauge of manufacturing fell to its lowest level since May as the authorities continued to bear down on the country’s $24 trillion (£14.7 trillion) credit boom. New export orders fell to 49.3, below the expansion line of 50. “We believe the negative impact of tighter liquidity conditions is showing on the real economy,” said Zhiwei Zhang from Nomura.
Morgan Stanley has cut its growth forecast for China to 6.6pc for the first half of 2014, warning that the country may face a rough ride trying to deleverage the economy while at the same time raising interest rates. There are widespread concerns over an estimated $1.1 trillion foreign currency debt owed by Chinese banks and companies, mostly borrowed through Hong Kong and Macau.
The US Federal Reserve insists that America’s growth has reached "escape velocity" as the housing market recovers and the shale gas boom revives large sectors of industry. Yet the picture is murky. The labour participation rate is still at a 50-year low of 62.8pc, evidence of a jobless recovery.
All key measures of the US money supply have been slowing for months. The growth rate of broad M2 measure has halved to around 5pc from 10pc two years ago, signalling a lull ahead.
Post a Comment