Monday, December 12, 2016

China markets plunge Monday on liquidity, property


Uh oh...trouble brewing in USD zombie-land.






6 comments:

Ryan Harris said...

The Chinese analysts that I follow did a little freak out last night when they realized that US support for one-china policy and other pet policies that China has taken for granted from US, would now require trade policy concessions to maintain favorable US support.

China promptly flew nuclear armed bomber over South China Sea to protest.

The stuff is getting real. China has been used to dictating to Washington on how to behave for decades because the incompetent cockroaches that ran Washington believed we needed to borrow dollars from the Chinese...

Matt Franko said...

Lets hope it doesnt degrade literally into World War Z....

Matt Franko said...

"incompetent cockroaches that ran Washington believed we needed to borrow dollars from the Chinese..."

No evidence that this is still not true...

Matt Franko said...

Heres another good one:

https://twitter.com/markets/status/808295480090329088

"China Singyes Solar Technologies Holdings Ltd. says it's been thinking about selling U.S. dollar-denominated debt to help pay back 560 million yuan ($81 million) worth of its so-called Dim Sum bonds due in November 2017. China Singyes' situation is emblematic of a recent trend: with the renminbi losing value and money leaving the country, Chinese companies that have historically sold such yuan-denominated bonds overseas are now considering alternative debt products to roll over their borrowings."

Innovative zombies making a last grab for USDs... "well we are out of Yuan so we will have to borrow in USDs now!" who said zombies couldnt think....

Ryan Harris said...

The dollar addiction was attractive because people assumed the peg would last, the trade was stable and the US rates were lower for longer.

About that importance of harmony in policy and taking a long term view, suddenly scrambling nuclear bombers in the air seems rational.

China made big USD commitments domestically and foreign with their big road project and railroads all over africa and a few dozen others too, most done in USD. Can't have it all, capital flowing, control the currency and control the domestic economy.

lastgreek said...

Matt, I think it's time to trademark the phrase (if possible) "USD zombies." :)