pboc

The Relevant Word Is ‘Decline’

By |2018-12-14T16:44:35+00:00December 14th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The English language headline for China’s National Bureau of Statistics’ press release on November 2018’s Big 3 was, National Economy Maintained Stable and Sound Momentum of Development in November. For those who, as noted yesterday, are wishing China’s economy bad news so as to lead to the supposed good news of a coordinated “stimulus” response [...]

China Going Back To 2011

By |2018-12-10T12:33:58+00:00December 10th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The enormous setback hadn’t yet been fully appreciated in March 2012 when China’s Premiere Wen Jiabao spoke to and on behalf of the country’s Communist governing State Council. Despite it having been four years since Bear Stearns had grabbed the whole world’s attention (for reasons the whole world wouldn’t fully comprehend, specifically as to why [...]

China Softly Weakens Some More

By |2018-11-14T15:37:47+00:00November 14th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

There was nothing really shocking about China’s monthly economic statistics for October 2018. The Big 3, Industrial Production, Retail Sales, and Fixed Asset Investment, all continue along in the same way. The Chinese economy is not crashing, it may be slowing, but most of all there isn’t any more upside. It’s the last one that [...]

China’s Pooh Lesson

By |2018-11-13T17:49:28+00:00November 13th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It’s one of those “nothing to see here” moments for Economists trying not to appreciate what's really going on in China therefore the global economy. The slump in China’s automotive sector dragged on through October, with year-over-year sales down for the fourth straight month. Auto sales last month were off 12% from a year earlier [...]

China’s (not) SAFE

By |2018-11-07T19:19:16+00:00November 7th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In another sign of repeating 2015, the Chinese are beginning to mobilize their “reserves” again. Three years ago, in a futile attempt to staunch CNY’s stubborn “devaluation” various government authorities blew through just about $1 trillion. It didn’t work. You would think that everyone could learn from this episode. I think the Chinese did, which [...]

Big China Change(s): We Are All Losers In The End

By |2018-11-05T12:40:58+00:00November 5th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Since December 2015, China’s powerful politburo has met nine times to discuss the economy. The Political Bureau of the Chinese Communist Party Central Committee is a group of 25 top officials who control pretty much everything. The politburo’s smaller Standing Committee is the very top echelon of the Communist Party. Members of the politburo are [...]

Stop(ped) The (Printing) Press

By |2018-10-22T12:33:30+00:00October 22nd, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Banks in China have to hoard liquidity ahead of their weeklong holidays, twice each year. The bigger of the two, related to the Chinese New Year, occurs in either January or February. The second, associated with China’s National Day, takes place at the beginning of every October and is still a formidable challenge to the [...]

Not A Good Start For China’s Third R

By |2018-10-17T16:39:56+00:00October 17th, 2018|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

File it under “what were they thinking?” In March 2015, confronted by a severe external monetary squeeze, the PBOC made a truly radical choice. Maybe it was that for a few months anyway things looked a little better. The eurodollar system had practically melted down globally first on October 15, 2014 (collateral) and then in [...]