Overnight Interest Rates in China hit 66.8%

[william the wie]

Although legally impossible to do in China and legally impossible to confirm by recipients capital flight from China appears to be at record levels with everyone taking the money and running. This is part of the reason for the collapse of the market.

 

[DarkFury]

Although legally impossible to do in China and legally impossible to confirm by recipients capital flight from China appears to be at record levels with everyone taking the money and running. This is part of the reason for the collapse of the market.

A reversal in the Chinese economy could have both good and bad for us. The bad would be China could not longer afford to loan us money to cover our over spending. And it would not only flood our markets with even cheaper products but the world market as a whole.

Infrastructure and social programs in China could suffer greatly as money tightens. Wage gains would be lost as well. IF we had a president willing to place tariffs on cheap Chinese goods it would not only stabilize but re-build American production plants.

 

[Toddsterpatriot]

Who still thinks their currency is still undervalued?

 

[william the wie]

Although legally impossible to do in China and legally impossible to confirm by recipients capital flight from China appears to be at record levels with everyone taking the money and running. This is part of the reason for the collapse of the market.

A reversal in the Chinese economy could have both good and bad for us. The bad would be China could not longer afford to loan us money to cover our over spending. And it would not only flood our markets with even cheaper products but the world market as a whole.

Infrastructure and social programs in China could suffer greatly as money tightens. Wage gains would be lost as well. IF we had a president willing to place tariffs on cheap Chinese goods it would not only stabilize but re-build American production plants.

Strong disagreement. The admittedly tepid recovery since 09 has two possible causes: Chinese capital flight or a hidden iota of economic competence by Obama. Don't know about you but I doubt Obama does much better than tying his shoe laces.

 

[irosie91]

scary

 

[CrusaderFrank]

Bush's fault

 

[irosie91]

Bush's fault

which BUSH?

 

[Weatherman2020]

It will soon be worldwide.

Revelation 6:6 Then I heard what sounded like a voice among the four living creatures, saying, “Two pounds of wheat for a day’s wages, and six pounds of barley for a day’s wages, and do not damage the oil and the wine!”

 

[irosie91]

It will soon be worldwide.

Revelation 6:6 Then I heard what sounded like a voice among the four living creatures, saying, “Two pounds of wheat for a day’s wages, and six pounds of barley for a day’s wages, and do not damage the oil and the wine!”

I need to quickly open an account in china

 

[DarkFury]

Although legally impossible to do in China and legally impossible to confirm by recipients capital flight from China appears to be at record levels with everyone taking the money and running. This is part of the reason for the collapse of the market.

A reversal in the Chinese economy could have both good and bad for us. The bad would be China could not longer afford to loan us money to cover our over spending. And it would not only flood our markets with even cheaper products but the world market as a whole.

Infrastructure and social programs in China could suffer greatly as money tightens. Wage gains would be lost as well. IF we had a president willing to place tariffs on cheap Chinese goods it would not only stabilize but re-build American production plants.

Strong disagreement. The admittedly tepid recovery since 09 has two possible causes: Chinese capital flight or a hidden iota of economic competence by Obama. Don't know about you but I doubt Obama does much better than tying his shoe laces.

I don't see this as anything Obama has done directly. This falls squarely on Chinese money management.

 

[irosie91]

I never understood economics. I can do biology and math----and some chemistry and-------I know how to crochet. There was a game little girls played when I was a kid called 'JACKS'-----a little rubber ball-----and a handful of little metal things-----
you toss the little metal things on the floor------BOUNCE THE BALL----pick up the metal things and catch the ball. I have no idea what this INTEREST RATE IN
CHINA means-------it seems excessive to me-----what is going to happen?

 

[william the wie]

I never understood economics. I can do biology and math----and some chemistry and-------I know how to crochet. There was a game little girls played when I was a kid called 'JACKS'-----a little rubber ball-----and a handful of little metal things-----
you toss the little metal things on the floor------BOUNCE THE BALL----pick up the metal things and catch the ball. I have no idea what this INTEREST RATE IN
CHINA means-------it seems excessive to me-----what is going to happen?

Nobody knows.

 

[william the wie]

Although legally impossible to do in China and legally impossible to confirm by recipients capital flight from China appears to be at record levels with everyone taking the money and running. This is part of the reason for the collapse of the market.

A reversal in the Chinese economy could have both good and bad for us. The bad would be China could not longer afford to loan us money to cover our over spending. And it would not only flood our markets with even cheaper products but the world market as a whole.

Infrastructure and social programs in China could suffer greatly as money tightens. Wage gains would be lost as well. IF we had a president willing to place tariffs on cheap Chinese goods it would not only stabilize but re-build American production plants.

Strong disagreement. The admittedly tepid recovery since 09 has two possible causes: Chinese capital flight or a hidden iota of economic competence by Obama. Don't know about you but I doubt Obama does much better than tying his shoe laces.

I don't see this as anything Obama has done directly. This falls squarely on Chinese money management.

I would say mismanagement but yeah..

 

[amrchaos]

High interest rates makes it harder to borrow money.

This effects investments
It can effect employment in the sense that business find it difficult to pay their employees.

Entire industrial sectors can grind to a halt.

Darkfury is right about the dumping of cheap goods(probably much cheaper than normal) in the market as exporters scramble for money.

But if the problem is not resolved soon, chinese goods will begin to disappear from our markets!

Need some electronics? The coming quarter is a good time to look for a deal!

 

[MarathonMike]

I checked the loan/mortgage interest rates in China and they are basically the same as the US. So the overnight rate being the 'bank to bank' rate must mean there has been a huge run on Chinese banks and they don't have much money to lend. That doesn't sound good at all.

 

[william the wie]

I checked the loan/mortgage interest rates in China and they are basically the same as the US. So the overnight rate being the 'bank to bank' rate must mean there has been a huge run on Chinese banks and they don't have much money to lend. That doesn't sound good at all.

In absolute terms the Chinese housing bubble is about 20 times bigger than the US housing bubble was.

 

[Toddsterpatriot]

I checked the loan/mortgage interest rates in China and they are basically the same as the US. So the overnight rate being the 'bank to bank' rate must mean there has been a huge run on Chinese banks and they don't have much money to lend. That doesn't sound good at all.

In absolute terms the Chinese housing bubble is about 20 times bigger than the US housing bubble was.

Don't you mean in relative terms?

 

[william the wie]

I checked the loan/mortgage interest rates in China and they are basically the same as the US. So the overnight rate being the 'bank to bank' rate must mean there has been a huge run on Chinese banks and they don't have much money to lend. That doesn't sound good at all.

In absolute terms the Chinese housing bubble is about 20 times bigger than the US housing bubble was.

Don't you mean in relative terms?

No, sales rates exceed occupancy rates by so much that doors and plumbing fixtures are installed by the buyers, if and, when they move in. That in turn means that appliances cannot be moved in without inviting theft and trim and cabinetry should not be installed for fear of vandalism. There were reports of sold out properties with less than 1% occupancy. That was more or less confirmed by a famous case a few years back in which a rather large building with more than 100 units collapsed and one woman died. The building collapse was in full view of an office building housing the office of a non-Chinese news service which is how I heard about it.

I have no idea why or how this is going on. but youtube has worlds without end videos about the ghost buildings, developments and cities if you want to run the numbers yourself.

 

[Toddsterpatriot]

I checked the loan/mortgage interest rates in China and they are basically the same as the US. So the overnight rate being the 'bank to bank' rate must mean there has been a huge run on Chinese banks and they don't have much money to lend. That doesn't sound good at all.

In absolute terms the Chinese housing bubble is about 20 times bigger than the US housing bubble was.

Don't you mean in relative terms?

No, sales rates exceed occupancy rates by so much that doors and plumbing fixtures are installed by the buyers, if and, when they move in. That in turn means that appliances cannot be moved in without inviting theft and trim and cabinetry should not be installed for fear of vandalism. There were reports of sold out properties with less than 1% occupancy. That was more or less confirmed by a famous case a few years back in which a rather large building with more than 100 units collapsed and one woman died. The building collapse was in full view of an office building housing the office of a non-Chinese news service which is how I heard about it.

I have no idea why or how this is going on. but youtube has worlds without end videos about the ghost buildings, developments and cities if you want to run the numbers yourself.

How big was the US housing bubble?

 

[william the wie]

I checked the loan/mortgage interest rates in China and they are basically the same as the US. So the overnight rate being the 'bank to bank' rate must mean there has been a huge run on Chinese banks and they don't have much money to lend. That doesn't sound good at all.

In absolute terms the Chinese housing bubble is about 20 times bigger than the US housing bubble was.

Don't you mean in relative terms?

No, sales rates exceed occupancy rates by so much that doors and plumbing fixtures are installed by the buyers, if and, when they move in. That in turn means that appliances cannot be moved in without inviting theft and trim and cabinetry should not be installed for fear of vandalism. There were reports of sold out properties with less than 1% occupancy. That was more or less confirmed by a famous case a few years back in which a rather large building with more than 100 units collapsed and one woman died. The building collapse was in full view of an office building housing the office of a non-Chinese news service which is how I heard about it.

I have no idea why or how this is going on. but youtube has worlds without end videos about the ghost buildings, developments and cities if you want to run the numbers yourself.

How big was the US housing bubble?

Really good question in as much as Erik Estrada was still working out leftovers from the S&L bubble tight up to the start of the meltdown. The theoretical value of non-performing debts is useless since the banks are state owned as are many firms. However China has @ 20 times more sold but unused housing, industrial, office and other real estate units than the US has ever had. Since that is the most conservative number I am aware of that is the one I used. Faber, Gordon Chang and other analysts use higher numbers. The BIS for example estimates that annual capital flight from China has reached at least 7% of GDP ($780 billion for 2015) or a trillion four in US equivalent. So, 20X the size of the Meltdown is low ball.