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managed decline

Xi’s National Security ‘Stimulus’ Reaches The People’s Bank of China

By |2022-05-20T17:37:15-04:00May 20th, 2022|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Xi Jinping’s true aim, in my view, isn’t to severely limit the spread of the coronavirus, seeking its ultimate eradication, rather to curtail dissent particularly any views contrary to his handling of China’s increasingly desperate economy. Mao’s Xi’s purpose is to completely eliminate all opposition. This intentional security policy has now been extended to the People’s Bank of China itself. [...]

The (less) Dollars Behind Xi’s Shanghai of Shanghai

By |2022-04-19T20:29:36-04:00April 19th, 2022|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

What everyone is saying, because it’s convenient, is that China’s zero-COVID policies are going to harm the economy. No. Economic harm of the past is the reason for the zero-COVID policies. As I showed yesterday, the cracking down didn’t just show up around 2020, begun right out in the open years beforehand, born from the scattering ashes of globally synchronized [...]

China’s Managed Decline Ain’t Ever To Be Grand(e), It’s (euro)Dollars

By |2021-09-20T18:44:53-04:00September 20th, 2021|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Some wanted to call it China’s Bear Stearns, and over time it may end up being seen that way. And that would be the right way to see it. What Bear’s March 2008 demise had represented was the watershed event for the eurodollar system, the final straw which finally broke the camel’s back. In the same way, CNY's was broken [...]

The Radically Not Inflationary ‘Shock’ Of Chinese Cracking Down

By |2021-07-27T17:04:17-04:00July 27th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

We’ve spent months in US Treasury bill yields for a (very good) reason. There’s brewing trouble out there, and it’s not just caught the attention of overeager indirects bidding in UST bill auctions. The premium for those instruments is a nod toward growing collateral scarcity, a deflationary potential that is almost certainly a big part, probably the key part, behind [...]

China Literally Does It Again

By |2015-04-20T16:37:59-04:00April 20th, 2015|Economy, Federal Reserve/Monetary Policy, Markets|

The fact that China did something will always be treated with hyperventilation, but lately that includes an almost bi-polar nature. Last week, the PBOC branch in Shanghai made what looked to be a “tightening” gesture upon Chinese stocks, ordering commercial banks, in a memo, to check for risks in margin debt. They also banned margin on unregulated accounts and “suddenly” [...]

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