China raises banks requires reserves again!!!!!!!!!!!!!!!!!!!!

Discussion in 'Wall St. News' started by S2007S, Jan 14, 2011.

  1. S2007S


    Breaking News

    China Raises Banks' Required Reserves Again
    Reuters | January 14, 2011 | 05:05 AM EST
    China's central bank raised lenders' required reserves by 50 basis points on Friday, its seventh increase since early 2009 in a bid to keep up a fierce campaign against quickening inflation.

    In a short statement posted on its website, the People's Bank of China said the increase will be effective Jan 20.

    It is Beijing's latest step to mop up excess cash in the economy after annual inflation hit a 28-month high of 5.1 percent in November.
  2. S2007S


    They know what Bubble ben bernanke doesn't!!!!!!!!
  3. Locutus


    Yes, China seems to be a much more prudent, wise and I dare say enlightened state at this point. (Yes I know they resolve internal issues with violence, but at least they don't lie about torturing, killing etc civilians, like the US, hell they are even so frank to send the family the bill for the bullet).

    It seems to be that what the Chinese government and central bank do is good for the majority of the people and bad for a minority, while the US government and central bank is good for a minority and bad for the majority.

    History will prove itself, but I'm learning Chinese just in case I'm right.
  4. LOL. Raising reserve requirements or even jacking rates by another 50bp is like King Canute trying to hold back the waves.

    China's fx reserves increased $199B last quarter (meaning the PBOC printed $199B of yuan to buy up those reserves, not all of it sterilized). China is in the middle-to-late stages of a spectacular money printing fueled spectacular credit boom.

    China is past the point of no return. Other than letting the yuan float, there is nothing they can do. At some point, the whole thing will collapse on itself. They are headed for a big, gaudy, 4th of July fireworks type crash.
  5. Any parent of school-age children and worth two dead flies.. would be having their children learning Chinese and/or Spanish.
  6. The biggest export the US has is it's monetary policy - most arm-chair pundits don't realize this. The US has China by the balls.
  7. Correction, they have each other by the balls. US's grip is, arguably, a bit stronger.
  8. China is in much more dire straits: they have no control over their currency. If China decides to float the yuan then hyperinflation will run rampant and they will have a full-blown depression on their hands.
  9. TGregg


    Yeah, it's MAD all over again. :p
  10. I don't see this as a foregone conclusion, so I would have to disagree...
    #10     Jan 14, 2011