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China
Aug 25, 2015 21:27:04 GMT 7
Post by Fletchsmile on Aug 25, 2015 21:27:04 GMT 7
Is China losing control? and what will the fall out be globally? Is this just the start?
Many markets had a little bit of a bounce after yesterdays corrections but China headed further down today...
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China
Aug 25, 2015 21:29:59 GMT 7
Post by Fletchsmile on Aug 25, 2015 21:29:59 GMT 7
China Falls Back on Rate-Cut Lever to Stem Stock Market RoutChina fell back on its major levers to stem the biggest stock market rout since 1996 and a deepening slowdown, cutting interest rates for the fifth time since November and lowering the amount of cash banks must set aside. The one-year lending rate will drop by 25 basis points to 4.6 percent effective Wednesday, the Beijing-based People’s Bank of China said on its website Tuesday, while the one-year deposit rate will fall a quarter of a percentage point to 1.75 percent. The required reserve ratio will be lowered by 50 basis points for all banks to cover funding gaps, it said. China’s surprise yuan devaluation on Aug. 11 led to a tightening in liquidity as the PBOC subsequently bought its currency to stabilize the exchange rate and curb capital outflows. The yuan may face more downside pressure as a result of the latest monetary easing, making it harder to keep depreciation in check. A 22 percent stock market plunge over four days added pressure for broad stimulus as authorities pull back from other direct efforts to boost equities. “The government has stopped using unconventional intervention in the stock market and decided to use more traditional and more market-based methods to boost market momentum and help the real economy,” said Lu Ting, chief economist at Huatai Securities Co. “Beijing has released some positive signals and these will help global stock markets. Using monetary easing to drive stocks and the economy is a method more acceptable to international capital markets.” European and U.S. shares clawed back some losses following their biggest declines since the 2008 financial crisis. The Standard & Poor’s 500 index rose 2.2 percent to 1934.38 at 10:06 New York time after entering a correction Monday. Russia’s ruble led a rebound in developing-nation currencies as raw-material prices advanced from the lowest level since 1999. Chinese stock-index futures surged. Downward Pressure contd. www.bloomberg.com/news/articles/2015-08-25/china-lowers-interest-rates-for-fifth-time-since-november
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Deleted
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China
Aug 25, 2015 22:16:15 GMT 7
Post by Deleted on Aug 25, 2015 22:16:15 GMT 7
The [fantasy] end is near.
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Deleted
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China
Aug 25, 2015 22:56:43 GMT 7
Post by Deleted on Aug 25, 2015 22:56:43 GMT 7
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Post by Fletchsmile on Aug 27, 2015 21:57:07 GMT 7
Volatile couple of days. You get the feeling off more to come Good article summarising things below Will the Next Recession Be Made in China? When China sneezes, the world just might catch a coldwww.bloomberg.com/news/articles/2015-08-27/will-the-next-recession-be-made-in-china-next article after that is also OK (same link), although I dislike how journalists too often draw parallels to 1997 just to grab attention. Apart from the title OK The turmoil has parallels with the 1997 Asian meltdown, including expectations of a Fed rate hike
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Deleted
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China
Aug 28, 2015 8:37:16 GMT 7
Post by Deleted on Aug 28, 2015 8:37:16 GMT 7
There is a huge upcoming official holiday to celebrate seventy years of 'freedom' from the Japanese invasion. That will reflect on the stability of everything in China for the next week or so as things are apparently being shut down, blocked and obfuscated. A lot of anti Japanese sentiments around and a huge military celebration and excercises will be conducted next week in the mainland.
Big crackdown on everything. Keep a sense of humour ready.
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siampolee
Detective
Alive alive O
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Post by siampolee on Aug 28, 2015 11:57:27 GMT 7
chink 1 (chĭngk)
n.
A narrow opening, such as a crack or fissure.
tr.v. chinked, chink·ing, chinks
1. To make narrow openings in.
2. To fill narrow openings in.
[Probably alteration of obsolete chine, from Middle English, crack, from Old English cine.]
There is the problem . Them chinks appearing in the walls of the finance houses. Chinese
A race of people that were doing amazingly well around a thousand years ago that already had set up banks and schools while the English were still hitting each other with clubs.
But around 50 years ago when they established communism everything pretty much went downhill from there and a good number of them now want to come to the US and Canada to get better jobs and have a better life.
communism never works...
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Post by Deleted on Aug 28, 2015 12:50:13 GMT 7
That's what they want you to believe. Clever ploy, you need to be on the ground in HK/China to appreciate the subterfuge.
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