A China-based bank that's trying to de-dollarize global lending is now having trouble repaying its dollar debts

[Han Patriot]

lol no one says you have to, it's up to chief terror economist xi anyways

but as it stands there's 0 advantage and only disadvantages to holding RMB as a foreigner over USD, EUR, JPY, CAD, AUD, gold, etc...

i would only hold some RMB if it can be freely exchanged and not backed by terrorism ideology of communism

Exactly, there is absolutely nothing to worry about. Lol

without free movement of reminbi's no one will want to hold it outside of China at least

You sure? Lol

 

[MH.Yang]

That only mean you know nothing about cash flow. Because none of what you mentioned is "Liquid Asset" which you can loan out

You can't use those 3.2 trillion forexes in a short time, a typical exchange would take T+3, and you are talking about maybe a thousand dollar transaction, it's not like those are money in your bank and you can withdraw them anytime.

You cannot sell bond/asset until you have found a buyer.

And drawing right is not convertible.

What China lack is what we call line of credit. You do not have enough RMB to circulate, because every bit of RMB is tied down to typical asset, you don't have enough from your central bank to extend line of credit like western institutions. And that in turn because of Chinese Capital Control policy, you cannot freely trade the currency of China, then how or why you want to have a lot of line of Credit?

Money in the bank is not exactly money in your bank like you think, once that money reaches your bank it no longer become circulated because the bank would use it to invest and growth their money, also national deposit is not exactly about to be able to sustain bank operation, which include loans, unless you are thinking 2 or 3 trillions dollars is enough for Blue Chip banks country wide that secure international loan, you probably going to need 10 times that.

Again, I would recommend you stick with stuff that you do know....And you apparently know nothing about this

1, No country is foolish enough to invest all its liquidity.
The Chinese govt owns US $900 billion of treasury bond, US $9.3 trillion of international financial assets and US $3.3 trillion of creditor's rights. These three types of assets cannot be immediately withdrawn.
But the Chinese govt's $3.2 trillion in foreign exchange reserves are already liquid assets used to protect currency security, it can be used immediately

2, During the pandemic, the United States printed money recklessly, ultimately leading to rampant inflation. China is unwilling to adopt the same approach to achieve the same results. China has just fallen into the "Liquidity trap". The Chinese market is not short of money, but the money is deposited in the bank by the Chinese people. Investors are unwilling to lend due to the conservative mentality during the epidemic, and banks lack the opportunity to invest their deposits in the market. This is the essence of the problem. Our problems are far less severe than the inflation problem in the United States. As long as the aftermath of the epidemic dissipates, these problems will naturally be eliminated. We don't need to print money. We are not short of money, but our bank lacks investment channels.

 

[CIA Mole]

1, No country is foolish enough to invest all its liquidity.
The Chinese govt owns US $900 billion of treasury bond, US $9.3 trillion of international financial assets and US $3.3 trillion of creditor's rights. These three types of assets cannot be immediately withdrawn.
But the Chinese govt's $3.2 trillion in foreign exchange reserves are already liquid assets used to protect currency security, it can be used immediately

2, During the pandemic, the United States printed money recklessly, ultimately leading to rampant inflation. China is unwilling to adopt the same approach to achieve the same results. China has just fallen into the "Liquidity trap". The Chinese market is not short of money, but the money is deposited in the bank by the Chinese people. Investors are unwilling to lend due to the conservative mentality during the epidemic, and banks lack the opportunity to invest their deposits in the market. This is the essence of the problem. Our problems are far less severe than the inflation problem in the United States. As long as the aftermath of the epidemic dissipates, these problems will naturally be eliminated. We don't need to print money. We are not short of money, but our bank lacks investment channels.

you going to deny there's an inflation problem in terror feudal commie xi land?

 

[MH.Yang]

View attachment 935043


you going to deny there's an inflation problem in terror feudal commie xi land?

I suggest you obtain data from legitimate websites.

We are facing the fk deflation, not inflation.

We are the world's factory, and if it is an inflation issue, we can easily transfer it to other countries. Deflation is the trouble.

Did the Indian media provide completely opposite reports on the problems facing China to comfort you Indians who are trapped in inflation?

BTW: Please carefully review the detailed information of M2 in China, which is actually equivalent to M3 in other countries.

China Consumer Price Index (CPI)

Consumer Price Index CPI in China increased to 103.20 points in January from 102.90 points in December of 2023. This page provides - China Consumer Price Index (CPI) - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

 

[CIA Mole]

I suggest you obtain data from legitimate websites.

We are facing the fk deflation, not inflation.

We are the world's factory, and if it is an inflation issue, we can easily transfer it to other countries. Deflation is the trouble.

Did the Indian media provide completely opposite reports on the problems facing China to comfort you Indians who are trapped in inflation?

China Consumer Price Index (CPI)

Consumer Price Index CPI in China increased to 103.20 points in January from 102.90 points in December of 2023. This page provides - China Consumer Price Index (CPI) - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

View attachment 935045

oh so then everythings great in terror xi feudal commie land

totally no cost of living issues

 

[DF41]

It has been corrected. 8.5 billion CNY, which is 1.2 billion US dollars.

If the WMSM starts picking on these, it means we are heading the right direction. I have been seeing a pattern, when the West feels anxious, they tend make jokes to make themselves feel better and secured. Just my observation over the years, from 3 gorges dam cracking to Chinese carrier cracking. Lolol


All these article to reassure themselves China ain't creating an alternative right? My friend China is not abandoning nor replacing dollars, we are thinking in a spectrum not zero sum game. We will trade in dollars and RMB. We hav3 always had a hybrid system.

AS REQUESTED BY Hamartia Antidote

SCHADENFREUDE

SCHADENFREUDE

SCHADENFREUDE

 

[jhungary]

1, No country is foolish enough to invest all its liquidity.
The Chinese govt owns US $900 billion of treasury bond, US $9.3 trillion of international financial assets and US $3.3 trillion of creditor's rights. These three types of assets cannot be immediately withdrawn.
But the Chinese govt's $3.2 trillion in foreign exchange reserves are already liquid assets used to protect currency security, it can be used immediately

You are talking about BANK and LOAN, all loans are going to be liquid asset, you can't lend, say a house, to the investor. First of all, 900 billions bond is peanuts. it won't be able to support even one blue chip banks operation, which is into trillions. You are talking about the support of national loan. Second of all, you can't liquidate bond unless you have a buyer. You don't just go and present your bond to the issuer and exchange your money, they either have to buy back ot have someone else buy it off you.

Second, you cannot exchange FOREX into liquid asset. And Forex is not for loaning people money, they are to balance your own currency, curb inflation and so on, I don't know what they teach you in Chinese Economy....

2, During the pandemic, the United States printed money recklessly, ultimately leading to rampant inflation. China is unwilling to adopt the same approach to achieve the same results. China has just fallen into the "Liquidity trap". The Chinese market is not short of money, but the money is deposited in the bank by the Chinese people. Investors are unwilling to lend due to the conservative mentality during the epidemic, and banks lack the opportunity to invest their deposits in the market. This is the essence of the problem. Our problems are far less severe than the inflation problem in the United States. As long as the aftermath of the epidemic dissipates, these problems will naturally be eliminated. We don't need to print money. We are not short of money, but our bank lacks investment channels.

LOL. QE is not printing money recklessly, it used to purchase asset, which is more or less equal to nationalising asset. They still have to sell those assets in which the 700 billion raise thru QE has been able to add 8 trillion assets.

Recent balance sheet trends

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

And lol, again, you have zero concept of money flow. Money is taken out of circulation once they were deposited into the bank because once they are in the bank account receivable, it turns into debt to the bank because they will use those money to invest and growth their account, you can't technically take out those money unless the investment is matured. If everyone goes to withdraw money in the same bank at the same time, that bank will not have enough money to give back to all the depositor.

And finally, your "Problem" for inflation is not as serious as the US is because of capital control policy, mind you that difference aren't really that big, Chinese inflation rate in 2022 is 3% while US is 4%. If this is the case, it still mean it was serious enough because you still can't curb the inflation to 0.8 or 0.9 the year before.

China inflation at 29-mth high but price pressure largely benign

China's consumer inflation rose to a 29-month high in September, driven mainly by pork prices, but price pressures remain largely benign in an economy hobbled by strict COVID-19 curbs and a property crisis.

www.reuters.com

United States Inflation Rate

Inflation Rate in the United States increased to 3.50 percent in March from 3.20 percent in February of 2024. This page provides - United States Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

 

[MH.Yang]

You are talking about BANK and LOAN, all loans are going to be liquid asset, you can't lend, say a house, to the investor. First of all, 900 billions bond is peanuts. it won't be able to support even one blue chip banks operation, which is into trillions. You are talking about the support of national loan. Second of all, you can't liquidate bond unless you have a buyer. You don't just go and present your bond to the issuer and exchange your money, they either have to buy back ot have someone else buy it off you.

Second, you cannot exchange FOREX into liquid asset. And Forex is not for loaning people money, they are to balance your own currency, curb inflation and so on, I don't know what they teach you in Chinese Economy....


LOL. QE is not printing money recklessly, it used to purchase asset, which is more or less equal to nationalising asset. They still have to sell those assets in which the 700 billion raise thru QE has been able to add 8 trillion assets.

Recent balance sheet trends

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

And lol, again, you have zero concept of money flow. Money is taken out of circulation once they were deposited into the bank because once they are in the bank account receivable, it turns into debt to the bank because they will use those money to invest and growth their account, you can't technically take out those money unless the investment is matured. If everyone goes to withdraw money in the same bank at the same time, that bank will not have enough money to give back to all the depositor.

And finally, your "Problem" for inflation is not as serious as the US is because of capital control policy, mind you that difference aren't really that big, Chinese inflation rate in 2022 is 3% while US is 4%. If this is the case, it still mean it was serious enough because you still can't curb the inflation to 0.8 or 0.9 the year before.

China inflation at 29-mth high but price pressure largely benign

China's consumer inflation rose to a 29-month high in September, driven mainly by pork prices, but price pressures remain largely benign in an economy hobbled by strict COVID-19 curbs and a property crisis.

www.reuters.com

United States Inflation Rate

Inflation Rate in the United States increased to 3.50 percent in March from 3.20 percent in February of 2024. This page provides - United States Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

If our CPI is really 3%, that would be great. 3% is the healthiest number. But our CPI is 0.2%.

As for the USA, are you sure your CPI is only 4%? I don't believe that if your CPI were only 4%, then the Federal Reserve would have stopped raising interest rates long ago.

This is actually the price of decoupling between China and the USA. China has lost a large portion of the US market and has overcapacity. The USA has lost a large amount of cheap and sufficient supply of goods, and prices have risen. This is a common choice for both parties, who bear different and opposite costs.

 

[MH.Yang]

oh so then everythings great in terror xi feudal commie land

totally no cost of living issues

For Indians like you, just go and watch Indian media. Because the real world can hurt your self-esteem.

 

[CIA Mole]

For Indians like you, just go and watch Indian media. Because the real world can hurt your self-esteem.

Enforcers of China’s One-Child Policy Are Now Cajoling People to Have Three

The number of births is plummeting as officials struggle to change the mind-set of a generation less eager to start a family.

www.wsj.com

go do your patriotic duty, 3 kids or you're a failure

 

[MH.Yang]

Enforcers of China’s One-Child Policy Are Now Cajoling People to Have Three

The number of births is plummeting as officials struggle to change the mind-set of a generation less eager to start a family.

www.wsj.com

go do your patriotic duty, 3 kids or you're a failure

We can solve the problem this way:

We can legislate for healthy freshmen from the top 100 universities. Each male student must provide sperm for free once, and each female student must provide eggs for free once. Then do in vitro fertilization.

Next, we recruited 700k women in India to work as surrogates. They receive a reward of 30000 US dollars (2.5 million rupees) for each pair of twins they give birth to.

The Chinese government only needs to pay $21 billion annually, and Indian women give birth to 1.4 million newborns for us. China's Population growth increased by 0.1%.






btw: May I ask if there are 700000 women in India who rent out their uterus for a fee of 2.5 million rupees each time?



Chinese people are good at solving problems. Indians are skilled at creating rumors.

 

[kuge]

if a china-based bank has lack of usd why did fed chief want china to buy usa debts?

 

[jhungary]

If our CPI is really 3%, that would be great. 3% is the healthiest number. But our CPI is 0.2%.

As for the USA, are you sure your CPI is only 4%? I don't believe that if your CPI were only 4%, then the Federal Reserve would have stopped raising interest rates long ago.

This is actually the price of decoupling between China and the USA. China has lost a large portion of the US market and has overcapacity. The USA has lost a large amount of cheap and sufficient supply of goods, and prices have risen. This is a common choice for both parties, who bear different and opposite costs.

View attachment 935063

First of all, whether you believe it is 4.0 is your business, this is the actual quote from the fed.

Also, inflation does not mean they lose lower cost market. Cost can be offset by other stuff.

On the other hand all these have nothing to do with China run out of capital to lend to other countries.

 

[Leishangthem]

w

even the chinese would rather hold dollars than rmb

Surging dollar tests China's capital controls as cash flees

Cash is leaving China's financial markets at the fastest clip in years as investors flee a falling currency and sputtering economy, and analysts point to hints that more money is being moved out of the country along back channels in a further sign of flagging confidence.

www.reuters.com

what will we do without our resident economist?

 

[MH.Yang]

First of all, whether you believe it is 4.0 is your business, this is the actual quote from the fed.

Also, inflation does not mean they lose lower cost market. Cost can be offset by other stuff.

On the other hand all these have nothing to do with China run out of capital to lend to other countries.

First of all, whether you believe it is 4.0 is your business, this is the actual quote from the fed.

Also, inflation does not mean they lose lower cost market. Cost can be offset by other stuff.

On the other hand all these have nothing to do with China run out of capital to lend to other countries.

China now has $3.3 trillion in foreign debt rights. We are one of the largest creditor countries in the world. We still have $3.2 trillion in foreign exchange reserves. Why do you think China doesn't have the funds to lend to other countries?