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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (4458)	1/6/2004 9:01:32 AM
From: TobagoJack	Respond to of 110194

<<Could US securities be liquidated en masse to cover Chinese banking needs? If so that could be a real vicious cycle>> ... precisely. My impression, and I can be wrong easily on this, is that the Chinese banking system is now married to the USD/Treasury bill operation, and being suspicious of new ways and neat tricks, I say 'I do not think I want to be a part of this game'.

To: russwinter who wrote (4458)	1/6/2004 11:32:32 AM
From: Ramsey Su	Respond to of 110194

russwinter, Yiwu Zhang of another thread was kind enough to link me the following article. Unfortunately, it is only in Chinese and it is one of those that would take a month for me to translate. hexinworld.com Aside from the author's opinion, he talked about the basic differences between these so called Chinese Banks vs foreign banks. It is also unclear exactly what the RMB is backed by, and how much of it should be printed if allowed to float. I come away with the conclusion that it may not be a banking mess as we know it, but rather a monetary system for a growing nation that has not finalized yet and has never been tested in an open market. Is a loan from one of these Chinese banks to a SOE a bad loan, or is it just left hand loaning money to right hand, kind of like a federal grant here for a specific purpose? Yes, it is very complicated.