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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (44128)	12/21/2008 1:36:35 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 217753

Good point and reflective of the deflation we're continuing to see globally. Can you REALLY perceive inflation to be a risk until we see economic activity (monetary velocity) finding a bottom? Massive liquidity injections will not cause inflation until velocity of financial transactions recovers. At that point the Central Banks will have to act to drain liquidity from the financial system to compensate. And the Baltic Dry Index is certainly a leading indicator and it's not showing a bottoming of diminishing demand so necessary to predict future monetary velocity. I hope those folks who were buying DRYS over the past several weeks know what they're doing... ;0) And don't get me wrong.. I would actually like to see some inflation building in the global economy as it would cause money to flee bonds and seek those sectors that would benefit from a revival of economic activity and trade. Btw, did you get any further information on retail demand in China since last month? I'm still not buying that 22% increase they reported unless there's a perception in China that they are looking at devaluation of their currency and deciding to buy in advance of that. Hawk

To: TobagoJack who wrote (44128)	12/21/2008 4:31:55 AM
From: elmatador	Respond to of 217753

Chinese banks to help finance Taiwan investors. Beijing's latest effort to reach out to political rival Taiwan. Chinese banks to help finance Taiwan investors Reuters, Sunday December 21 2008 (Adds details) BEIJING, Dec 21 (Reuters) - China pledged on Sunday to make available to Taiwanese investors in the mainland 130 billion yuan ($18.99 billion) in financing over the next three years, in Beijing's latest effort to reach out to political rival Taiwan. Ties between China and Taiwan, separated since the end of the Chinese civil war in 1949, have warmed since Taiwanese president Ma Ying-jeou took office in May. On Monday the two sides opened direct daily passenger flights, new shipping routes and postal links for the first time in six decades. [ID:nTP350629] Wang Yi, head of China's Taiwan Affairs Office, made the financing pledge at a meeting with Taiwanese politicians in Shanghai. Three banks would provide the money, he said. Industrial and Commercial Bank of China and Bank of China would provide 50 billion yuan each. Policy bank China Development Bank would provide 30 billion yuan, in addition to another 30 billion yuan pledged previously, Wang said. He provided no other details of the financing. His remarks were part of a flurry of economic diplomacy by China, which has so far suffered less from the global economic crisis than its neighbours and is presenting itself as a stabilising force in the region. ($1=6.844 Yuan) (Reporting by Ben Blanchard; Editing by Tomasz Janowski)