Author: cestmoi

The argument for a stronger RMB. [Copy link] 中文

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Post time 2010-3-27 06:54:55 |Display all floors
Originally posted by lebeast at 2010-3-26 20:23
Chinese have open slather access to our residential market, thanks to the Rudd-Politburo apparatchik.


I don't know if you read some recent comments in The Age (I think) where there are some complaints that many people cannot get a look in in Box Hill as the local (ethnic Chinese) real estate agents do much of the advertising in Chinese language to encourage Chinese buyers.
"他不是救星, 他是一个非常淘气男孩" - Monty Python

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Post time 2010-3-27 07:00:40 |Display all floors

China should learn from Japan's mistakes.

China should learn from Japan's mistakes in dealing with the west.  Do not bend down to their demands and do not appreciate the currency before it is "ripe".  Once China gets rid of its American bonds, then they should appreciate the currency.

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Post time 2010-3-27 07:44:44 |Display all floors
CM,

My impression is that this is done largely through repurchase agreements, but I'm not sure. Getting good information on the bond market and the full scope of PBoC activities (which includes, mind you, telling banks to fall in line to help its policies) is beyond my capability and, frankly, desire to know for the time being (if you hadn't noticed I've been making quick, hour long swipes across this board every few days, I'm really busy most days right now).

The total market value of the outstanding securities, however, has to be the same as China's total foreign exchange holdings if denominated in RMB at current prices less the value of excess inflation (which is being caused by not fully matching the policies). But now we're talking state secrets, so I doubt anyone actually knows (really, that's a scary thought that perhaps no one knows).
"Justice prevails... evil justice."

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Post time 2010-3-27 09:02:16 |Display all floors
Hey Stevie boy, you think the Feds will give us a toilet roll for each T-coupons we return?

We, that's okay then.

We still get three tanker loads full of crap rolls to ship back to China!

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Post time 2010-3-27 09:19:47 |Display all floors

Getting more difficult by the day

Originally posted by interesting at 2010-3-27 07:44
CM,

My impression is that this is done largely through repurchase agreements, but I'm not sure. Getting good information on the bond market and the full scope of PBoC activities (which includes, ...


If they are mostly repos, I think PBoC can handle it. As said, if we do some swaps of obligations we might be able to squeeze out of the corner we painted ourselves into.

There are many other scary thoughts, such as the knock-on effects of the synthetics instruments out there. The 2nd Glass-Steagall Act to separate retail and investment banking was relaxed by the Reagan Administration and then Bush-Greenspan happened.

I hope the Politburo would take the PBoC line of argument over others.
Let the dice fly high

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Post time 2010-3-27 09:27:51 |Display all floors

It's no good

Originally posted by cestmoi at 2010-3-27 09:19


If they are mostly repos, I think PBoC can handle it. As said, if we do some swaps of obligations we might be able to squeeze out of the corner we painted ourselves into.

There are many othe ...
.

ignoring me!

If the rolls we swop for them T-bills are of treble layers, hopefully we'll won't get any more sticky fingers in the future, old boy!

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Post time 2010-3-27 13:37:07 |Display all floors
CM,

I would hope they could, because they're going to have to. In any case, if they don't do it soon, they'll lose the window in which the Treasury's price floor on bonds prevents them from realizing losses.
"Justice prevails... evil justice."

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