Rumors have circulated in China that People’s Bank of China (PBC) Gov. Zhou Xiaochuan may have left the country. The rumors appear to have started following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that because of an approximately $430 billion loss on U.S. Treasury bonds, the Chinese government may punish some individuals within the PBC, including Zhou. Although Ming Pao on Aug. 30 published a report on its website indicating that the prior report was fabricated by a mainland news site that had attributed the false information to Ming Pao, rumors of Zhou’s defection have spread around China intensively, and Zhou’s name has been blocked from Internet search engines in China.
Read more: China: Rumors of the Central Bank Chief's Defection | STRATFOR
These little Chinamen are really entertaining.
ReplyDeleteThey have a fucking 60 Mile Road block that will take months to clear.
And they are worried about some useless paper they bought from us?
priorities their confucious
priorities
Anonymous said...
ReplyDelete"These little Chinamen are really entertaining.
They have a fucking 60 Mile Road block that will take months to clear.
And they are worried about some useless paper they bought from us?
priorities their confucious
priorities “
Confucionism has secular values of celebrating the order of a ruling class and is not a religion, but sort of like an old fashioned constitution the values of an educated elite class and its morality.
It is no accident that the last , losing battle ,Mao waged was against this rising new Confucianist style capitalist class in the government and party..
So, Yes they now have capitalist problems with their export of wealth economy and fictionally valued property values with a confucionist bureaucrat capitalist ruling class management style.
Especialy they worry because the have a few Trillions of savings value denominated in fast devaluing US paper as the US tries to escape its debts. They are understandably worried that they may not get their savings back in real value –not hyper inflated US paper- or that the US will be forced to default.
Some say China might itself be insolvent, but they have industry and economic growth
and are investing stimulus big time in infrastructure to develop their internal commodity markets.
While America has capitalist problems with their export of paper economy and fictionaly valued property values, with huge internal debts and debts to the rest of the world .
Especialy as they have issued hundreds of trillions of this "useless paper" outstanding as government and private debt that can no longer function as Capital and be valorized or exported at average profits .
So ,
These fat American chauvinists are really entertaining.
They have a failed bankrupt ponzi economy, with debts that will take years of Debt peonage to Usury and government debts to clear.
But , they themselves are not worried about some” useless paper” they sold to each other and to the rest of the world as fake real value because they own a printing press!
They can only attempt to stimulate their economy by a financial coup for socializing past losses because they have exported their unprofitable industry and cannot build infrastructure because the money they print as debts has to be used to pay off past debts and with declining tax revenues probably not able to re- build even 60 miles decaying infrastructure as their states must beg for printing press paper debt relief to pay their old interest bill debts.
While the Chinese have a fast expanding profitable car industry and new highways they still have to learn to manage
the US only has bankrupt Government Motor Corporations and decaying bridges and highways .
They prioritize the values serving their own market god and issue lectures to others about Confucius on good management as it makes them feel superior , rather than recognizing they are now hereditary debt peons passing on their debts to their enslaved to usury future generations .
Because they have a bankrupt Judeo –Christian usury god of free trade in debts religion to prioritize and ideologically Kow Tow to.
One Confucionist capitalist country is changing its internal economy and so might have a good future economy, that remains to be seen if better wealth distribution amongst its classes develops, while the other dreams of restoring its past ponzi useless paper economy with wars and decades of debt peonage service to the usury god of its small ruling elite .
Whats wrong in supporting the US which buys a huge proportion of Chinese goods. 430 billion should be written off as a good will gesture towards the US which is in need of some assistance right now
ReplyDelete10.46
ReplyDeletewhats a few hundred billions amongst friends ?
According to this rumour Zhou gets the blame.
But where did the money go?
Is the assistance already in the Fed?
This rumor doesn't make sense. US treasuries are at all time high. Remember that Bond prices rise as yield declines. China won't get burned until the US bond bubble pops and bond prices plummet.
ReplyDeleteIf Zhou went into hiding, its probably because of the trillions in bad Chinese loans. There are 68 Million unoccupied homes, and whole cities that nobody lives in. Perhaps there are one or more major chinese banks that are about to fail.
Just so ,the rumour on the face of it, may make no sense to some.
ReplyDeleteThe real basis of the rumour being widely circulated , reflects internal Chinese polititical politics and long term strategic aims .the rumour is a way to discuss these matters in the face of Chinese censorship and the official party line.
Whether ,or not china should continue to provide vender finance propping up the falling US dollar hegemony ,US money printing , and financing The US military and wars .
Including the US Navy and US bases In Japan ,korea etc Encircling China.
The chinese investment in US bonds includes not just treasury bonds but Fannie and freddie bonds that have been nationalised.
Chou a CENTRAL banker makes proaganda for a new world financial order based on an IMF Special drawing rights World currency. SDR.
The nationalist element beleives that China should aim for a world role in finance and trade for the YUAN.
And so one section of the ruling Elite say stuff both the dollar and the US and western imperialist dominated IMF.
This is aparently just Rumour that is being circulated widely by nationalist elements for political reasons in order to promote discussion and a challenge the central bankers trying to let the US dollar hegemony die more slowly by allowing a role for the US
in a new world order SDR currency with china as a subservient partner in that .
For some background see:
http://www.zerohedge.com/article/where-world-zhou-xiaochuan-stratfor-provides-update-1-month-chinese-repo-surges-50