China Economic News

The RMB value is stabilizing...

No basis for continued yuan depreciation: Chinese Premier

BEIJING (Aug 25): There is no basis for continued depreciation in the Chinese yuan, Premier Li Keqiang was quoted by state television as saying on Tuesday.
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http://www.theedgemarkets.com/sg/article...-premier-0

2015.08.23文茜的世界財經周報／官商勾結腐敗　造成天津爆炸慘案
https://www.youtube.com/watch?v=m-dxSaawrXw

err... US fixed the Economy. The last one is sub-prime. The Banks all get hit. AIA major holder lost control of their stake. A number of large companies bankrupt ! Insolvent small banks gone. They lowered interest rate. And they introduce QE.

What they didn't do is to support the Sub Prime Bubble. China tries to push their Bubble Index up. Make sense to you ?

(26-08-2015, 12:12 PM)corydorus Wrote: err... US fixed the Economy. The last one is sub-prime. The Banks all get hit. AIA major holder lost control of their stake. A number of large companies bankrupt ! Insolvent small banks gone. They lowered interest rate. And they introduce QE.

What they didn't do is to support the Sub Prime Bubble. China tries to push their Bubble Index up. Make sense to you ?

Three rounds of QEs, have created not only one bubble, but many bubbles around the world. haven't they? 

That's worth more discussion. Inflation yes because the world rely on USD as trading currency. Bubbles probably we need to understand more what you mean. Commodity Price at all time low. Euro much weakened. In fact, people is now asking US to slow down their rate hikes.

(26-08-2015, 03:22 PM)corydorus Wrote: That's worth more discussion. Inflation yes because the world rely on USD as trading currency. Bubbles probably we need to understand more what you mean. Commodity Price at all time low. Euro much weakened. In fact, people is now asking US to slow down their rate hikes.

I like definition. 

Since we are in investment, the definition of bubble, means over-valuation. The QEs make the cost of capital artificially lower, thus has made asset classes around the world, artificially higher in $, thus over-valued.

I prefer a slow-down in transportation fare hike, albeit I am aware that we are having unsustainable lower transportation fare, comparing with our peers in the region. 

I wouldn't use the word Artificial since it has to come from Real. And if we are to use pre-crisis rate as Real, is itself Artificial
So do higher inflation means over-valued ? It just means our paper money has lower value. ROFL.

I prefer a smoother ride. So if higher reasonable fare is able to fix it i am happy with it. But will it ?

(26-08-2015, 04:05 PM)corydorus Wrote: I wouldn't use the word Artificial since it has to come from Real. And if we are to use pre-crisis rate as Real, is itself Artificial
So do higher inflation means over-valued ? It just means our paper money has lower value. ROFL.

I prefer a smoother ride. So if higher reasonable fare is able to fix it i am happy with it. But will it ?

It is artificial, because intervention, not from market demand-supply. It is real, indeed, as real as the interventions from China authorities lately. 

(26-08-2015, 04:36 PM)CityFarmer Wrote:

(26-08-2015, 04:05 PM)corydorus Wrote: I wouldn't use the word Artificial since it has to come from Real. And if we are to use pre-crisis rate as Real, is itself Artificial
So do higher inflation means over-valued ? It just means our paper money has lower value. ROFL.

I prefer a smoother ride. So if higher reasonable fare is able to fix it i am happy with it. But will it ?

It is artificial, because intervention, not from market demand-supply. It is real, indeed, as real as the interventions from China authorities lately. 

Ha Ha. i like this reply. Battleground moved to DEMAND-SUPPLY. There is demand for USD which is why the FED can Print. If fact there is such a demand WW, they can't stop printing. But there aren't market demand in China Stock Index. Which classify the Gov intervention, Artificial. 

China flash PMI going down again 47.1.

It's an unstoppable spiral downwards with their manufacturing contracting. China interest rate now 4.6% after recent cut, they will probably have to cut another 1-2% to stabilise their economy. Maybe do some sort of QE also.

Real GDP is probably half what they are claiming at best.