Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on September 24, 2015
Why China Matters to the Fed
Nariman Behravesh, chief economist at IHS, previews today’s speech by Federal Reserve Chair Janet Yellen as markets look for clarification of the message delivered when the Fed held steady on interest rates. He speaks on “Bloomberg Surveillance.”
3 Comments on "Why China Matters to the Fed"
penury on Thu, 24th Sep 2015 2:26 pm
Why China matters to the Fed; Because it provides another half-assed reason to continue robbing the people while enriching even more the thieves you work for.
BC on Thu, 24th Sep 2015 4:50 pm
The Sinophiles (Stephen Roach of Yale among the most confidently vociferous) are out en masse in recent days, coincident with Xi’s visit to the US. There are a lot of Wall Streeters, hedge funds, etc., still with lots of fully exposed skin in China’s corrupt game, having believed the fallacious stories they told themselves and prospective invesuckers to convince them to pile into China in recent years.
US and Japanese FDI began exiting China in 2013, with flows turning negative YoY since 2014. China’s growth boom is done. China’s real GDP per capita is at the same level as the US in 1929-30 and Japan in the late 1960s; but the Middle Kingdom imports 60% of oil consumption and does not enjoy oil at $15-$20 as did the US as a self-sufficient oil producer and net exporter in 1929-30.
China is the biggest debt-deflationary setup since the US in 1929 (as is most of the rest of the world).
China is a four-letter word: “Sell” (in 2008-13).
makati1 on Thu, 24th Sep 2015 10:26 pm
BC, but, they can’t sell now, if there are no buyers. That is the weak point in the current ponzi financial system. What you ‘own’ is only worth what someone will pay for it when you want to sell. You know that. Many do not.
China is a huge question mark and only time will tell if it has a good answer or not. I don’t care either way. I have 10 Yuan in my collection. No stocks or bonds from any country or big bank deposits to keep me awake at night. I see blood on the Market floor and laugh. It’s nice to be free.