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View Full Version : Now China ... Reasons for Printing Money Abound



mick silver
26th December 2013, 02:57 PM
http://www.thedailybell.com/images/library/pileofmoney.jpgChina move calms credit concerns ... Chinese authorities have been trying to curb excessive lending ... China's central bank has pumped $5bn (£3.1bn) into the banking system to ease concerns over a credit squeeze that has caused rising interest rates. The People's Bank of China did not explain its actions, but over the last few days there has been growing concern over the availability of credit. That has been reflected in the interest rates banks charge each other. – BBCDominant Social Theme: The economy is perched on a precipice. Let's stimulate. We've stimulated too much. Let's stop. Well, let's slow down anyway. The markets are doing fine.
Free-Market Analysis: Every central bank of note in the world is printing money faster and faster. We don't think this is any coincidence. The world's top bankers seem to want a huge stock market explosion that will make current averages look fairly tame.
What comes after the punch bowl is taken away is a deeply concerning question. But don't think about that now. Just let the good times roll!
This is a Wall Street Party to end all such parties. And you can watch those behind this particular sub-dominant social theme justify it any one of a number of ways.






In Japan, the government suddenly started printing money because it is a new one with "new ideas."
In England, the BOE still prints money in great gouts, and BOE governor Mark Carney has utilized the new "tool" of forward guidance to assure interested parties that the BOE intends to continue its easy money policy for as long as necessary.
In the US, the Fed (http://www.thedailybell.com/definitions/params/id/1855/) is supposed to be slowing money printing with a "tapering," but this is a highly questionable pull-back, as Fed officials have signaled, at the same time, that they have no intention of letting markets deflate.
In China, as we can see above, the central bank (http://www.thedailybell.com/definitions/params/id/2958/) is once again engaged in a money-printing exercise.

We've mentioned these four central banks because, so far as we can tell, their managers control the better part of 75 percent of the world's money supply, along with the EU (http://www.thedailybell.com/definitions/params/id/1891/), which is also stimulating. And all of these central banks are printing. In mid-2013, the UK Guardian reported on this phenomenon as follows:
In its annual report, published on Sunday, the Bank for International Settlements (http://www.thedailybell.com/definitions/params/id/1812/) based in Basle, Switzerland, warns that with unprecedented stimulus already in place, fresh action from central banks to kick-start growth may do more harm than good, by distorting financial markets and jeopardising stability.
"Unfortunately, central banks cannot do more without compounding the risks they have already created. Monetary stimulus alone cannot put economies on a path to robust, self-sustaining growth, because the roots of the problem preventing such growth are not monetary," said Stephen Cecchetti, head of the bank's monetary and economic department, presenting the report.
And yet the madness continues. Here's more from the BBC (http://www.thedailybell.com/definitions/params/id/2541/) article we excerpted above:
On Monday one important benchmark rate rose to its highest level since June, the height of China's credit crunch. The seven day bond repurchase rate hit 8.93% but fell back to 6.56% after the central bank added funds to the banking system.
Analysts are blaming China's current cash crunch on a number of factors. In a process known as "window dressing" banks typically conserve cash at the end of the year to keep their balance sheets looking healthy. However this year they have been doing that in a different financial environment.
Chinese authorities have been trying to discourage excessive lending by curbing official credit lines and slowing government spending. "The banks are being forced to adapt to regulatory changes - so they are being forced to hold additional capital.
Banks that have been used to operating on very easy and loose conditions are now finding that those conditions are starting tighten," said Jeremy Stretch, market strategist at CIBC.
"Authorities are fearing that this is causing a scramble for cash and that is pushing up the rates and so they are being forced to inject some money into the system," he said. In June banks suffered a more serious credit squeeze and the benchmark interbank lending rate jumped to a record 13.4%.







The window dressing is actually being constructed by central bankers themselves in conjunction with the mainstream media (http://www.thedailybell.com/definitions/params/id/1861/). The idea seems to be that central bankers do not want to be too clear about their plans.
The mainstream media is constantly sounding concerns about the looseness of money, and lately, in the West the financial reporting has focused relentlessly on tapering – which simply means that the US Fed will purchase fewer government bonds.
But, in fact, the US central bank along with the other big ones referred to above is not REALLY reducing money flows a great deal.
The tightening talk we're listening to is just for public consumption. The whole system of recovery is based on equity appreciation stimulating employment (which it does ineffectively at best). But if top Western bankers seek this sort of recovery, stimulate they must.
And they are.
Constantly, we hear they are not. But they are. Always, they are.
The big central banks around the world are all pumping money in unison. The media continues to write about "tightening."
What is being planned are higher market highs. We will always be told that bankers are concernedly moderating money flows. But then, at the first sign of trouble, the taps are turned back on.
In fact, they are never REALLY turned off. And there will always be a reason to push the volume of money even higher.
They are planning a big Wall Street Party. The top men always seem to find reasons to print more. Until the world is swimming in currency.


Conclusion

That's the plan, or so it seems.

- See more at: http://www.thedailybell.com/news-analysis/34866/Now-China--Reasons-for-Printing-Money-Abound/#sthash.r9HXIA9d.dpuf

EE_
26th December 2013, 03:07 PM
Every central bank of note in the world is printing money faster and faster. We don't think this is any coincidence. The world's top bankers seem to want a huge stock market explosion that will make current averages look fairly tame.
What comes after the punch bowl is taken away is a deeply concerning question. But don't think about that now. Just let the good times roll!
This is a Wall Street Party to end all such parties. And you can watch those behind this particular sub-dominant social theme justify it any one of a number of ways.

Looks like the Dow is going to 20,000 Let the good times roll!

Hypertiger
26th December 2013, 05:32 PM
lending?

Every commercial bank in the world works like this...

“The process by which banks create money is so simple that the mind is repelled.”--John Kenneth Galbraith.

"The actual process of money creation takes place in commercial banks. As noted earlier, demand liabilities of commercial banks are money."--Federal Reserve Bank of Chicago, Modern Money Mechanics, p.3

A consumer uses their current income...Which is composed of previously created out of thin air bank credit or an asset inflated in price by bank credit as collateral powering their request for a bank to create new bank credit out of thin air.

You require constant inflation of bank credit...Or the entire created out of thin air fantasy economy implodes to oblivion.

The past 70 years has been the greatest bank credit boom in the 600 year history of commercial banking credit systems...You all are in a blow off...

Hypertiger
26th December 2013, 05:35 PM
They are doing massive share buybacks to cut supply in relation to demand to keep the markets rising...The British during the great depression dumped grain at sea to cut supply to support prices...While the population starved.

When the maximum potential is reached and you all have been milked as much as you can...they will pull the plug and push the ultimate sell button...and short all you livestock to oblivion.

Hypertiger
26th December 2013, 05:41 PM
Like Germany.

The president killed himself

the board of directors were hung

All the employees were laid off/fired and lost their jobs...they were just simple minded people trying to earn a living.

The invisible hand of the top livestock holders or investors...They dumped their German livestocks into the hands of the bag holders in 1941 and began buying US livestocks like mad.

They relaxed in Switzerland and enjoyed life...That is what the above chart shows.

That is story of the wealth of nations derived from annihilations of soon to be bankrupted corporations with no way to pay the cost of reparations for past misallocations due to their mindless machinations trying to avoid economic damnations from absolute capitalizations to sustain instant gratifications.

Daddy...Did GOD create the stock markets?

It must be in the bible somewhere...along with the plans to build civilization...and everything else.

Yawn next...have fun hacking yourselves to pieces trying to require what you never had to begin with and what you never will when the logical conclusion of the reasonable assumption or lie you worship as truth is reached.

the lifting of the veil on the wedding dress of the abyss to receive the sweet kiss of the apocalypse of bliss.

Ponce
26th December 2013, 05:45 PM
At least China will have the gold to back up their printing.....

V

Hypertiger
26th December 2013, 07:08 PM
China does not have anything to back up their inflated fantasy economy...The gold standard was a Rothschild scheme...It was called the London fix...

The US Dollar was a measure of silver...not gold...from 1792 to 1964...The US dollar was silver...that is how long it took the city of London to drain the USA of silver...then gold by 1971...

China will implode without the massive amount of imports of US dollar inflation...

When the British pound was the global trade medium of exchange prior to 1929...When the UK collapsed....the flow of pounds dried up and the interior of china imploded into chaos...The city of London turned Japan into a war machine and liquidated the port cities...then used the USA to liquidate Japan.

The communists and Mao...Were city of London/Paris financed to put China into stasis until 1978 when the UN special economic zones were opened up to accept US consumer debt inflation to inflate china into what it is today.

Ponce
26th December 2013, 08:09 PM
It will be very easy for the Chinese people to go back to the rice paddy's, after all it was not long ago that they came from it...when I stated that they had gold to back up their printing of money I was thinking the Chinese way and not the white men's way.......they don't use their money and gold as we do..........no matter what they will be the new super power of the world because the American people (government) can only support their empire for so long in the military mode that they are in now.........the metal in a old car must be melted before a new car can be made.

V