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  • Is China to Blame for Rising U.S. Interest Rates?

    From bloomberg.com

    Could turmoil in Chinese financial markets be the cause of the rise in interest rates on U.S. Treasuries? Danske Bank's chief emerging-markets analyst, Lars Christensen, explained the theory to me earlier today. Last week, China's central bank deliberately withdrew liquidity and pushed up the short-term interest rates banks pay to borrow from each other, in an effort to shove the Chinese banking system toward less risk-taking. That squeeze, Christensen explained, caused Chinese banks to dump Treasuries onto the market. (China's central bank is famous for being the largest foreign holder of Treasuries, but its four ... (full story)

No.
Sure no
It looks like a rising consensus on propaganda that likes to target Chinese for any problems that range from hacking to economic woes of the americans. If you remove the veil, somebody is hard at work to undermine anything chinese - especially its economic success!
seems like it, china has the biggest cash reserve
Quoting mrlfx
It looks like a rising consensus on propaganda that likes to target Chinese for any problems that range from hacking to economic woes of the americans. If you remove the veil, somebody is hard at work to undermine anything chinese - especially its economic success!
Nicely put
Come with me if you want to live....
Gold has dropped almost 20 USDs in the last hour, anyone taking notice?

Strange thing is currencies are not reacting.
Quoting mrlfx
It looks like a rising consensus on propaganda that likes to target Chinese for any problems that range from hacking to economic woes of the americans. If you remove the veil, somebody is hard at work to undermine anything chinese - especially its economic success!
Propaganda or speculation? The fact of the matter is China is not transparent. No creditable agency questions other countries' data like China. China has massive malls, housing communities, and other nonsense that looks like raw growth in various sectors until we realizes no one is occupying such things. They ship empty containers to perk up numbers. They're land of fraud and product cloning. Their banking sector, like any country's, is corrupt.

They say the government allows the SIBOR rates to pop up. I guess we'll find out sooner or later.

5 or 6% growth is great if anyone can accurately gage the growth. Nearly every country is stagnant, emerging markets are dying and China is just humming along. Sounds a bit suspect.
When the facts change I change my mind, what do you do sir
Quoting Pip Anon
Propaganda or speculation? The fact of the matter is China is not transparent. No creditable agency questions other countries' data like China. China has massive malls, housing communities, and other nonsense that looks like raw growth in various sectors until we realizes no one is occupying such things. They ship empty containers to perk up numbers. They're land of fraud and product cloning. Their banking sector, like any country's, is corrupt.

They say the government allows the SIBOR rates to pop up. I guess we'll find out sooner or later.

5...
I think you don't how the property development works. Tell me any property/township that has full occupation within the 1st 3-5 years after its development. I would worry after it remain unoccupied for a prolong period lets say about 10 years. If I am a planner, I would love this peculiar US biased problem where the hardest part of development has already taken place and only required to be occupied.

As for transparency, Chinese needs some time to fully open up. Let say when the west can no longer manipulate and influence its policy.
Quoting mrlfx
I think you don't how the property development works. Tell me any property/township that has full occupation within the 1st 3-5 years after its development. I would worry after it remain unoccupied for a prolong period lets say about 10 years. If I am a planner, I would love this peculiar US biased problem where the hardest part of development has already taken place and only required to be occupied.

As for transparency, Chinese needs some time to fully open up. Let say when the west can no longer manipulate and influence its policy.
Dude there's a freaking billion people in that country. The problem is not that they're there. The problem is the vast majority of the population is in poverty.

If there is NO DEMAND than there is NO DEMAND
When the facts change I change my mind, what do you do sir
Quoting mrlfx
I think you don't how the property development works. Tell me any property/township that has full occupation within the 1st 3-5 years after its development. I would worry after it remain unoccupied for a prolong period lets say about 10 years. If I am a planner, I would love this peculiar US biased problem where the hardest part of development has already taken place and only required to be occupied.

As for transparency, Chinese needs some time to fully open up. Let say when the west can no longer manipulate and influence its policy.
lol. that is all funny. they have 64 MILLION vacant apartments in several totally empty cities. Empty malls, empty stores, nobody around. tumbleweeds will move in soon. Who is going to do the maintenance on them? Who is going to buy them? the average joe in china makes 3-4k per year. gdp per capita is 8400 bucks. This is a bubble of monstrous proportions that has yet to burst. it will soon enough
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  • Posted: Jun 25, 2013 7:17pm
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     Newsstand
    Category: Fundamental Analysis
    Comments: 10  /  Views: 2,225