Is this why Bush is in a Hurry? China Halts lending to U.S. Banks

[lib2DaBone]

Source: CNBC

China regulator denies report it ordered banks to halt interbank deals with US| 25 Sep 2008 | 01:08 AM ET Font size: BEIJING (XFN-ASIA) - China's banking regulator has denied a media report of a ban on domestic commercial banks from lending to US financial institutions.

Citing industry sources, the South China Morning Post (SCMP) reported earlier today that the China Banking Regulatory Commission (CBRC) told domestic banks to stop lending to US financial institutions in the interbank market to prevent possible losses.



Read more: http://www.cnbc.com/id/26879046

---

They deny it....but Confucius say.... "Where there's smoke there is fire."

Is this The Credit Crunch they aren't telling us about?

[agentS]

1. The Chinese piggybank would close at some point

Apparently, they're not gonna take any more risks on our market anymore.

I suspect things are gonna get ugly back home.

[MadMaddie]

3. not only the piggy bank for loans but they are probably going to

call in their debt markers and ask the US to start paying them back. And at that point the US is screwn all because of tethe * Administration.

[FreakinDJ]

12. Time to "Match existing Chinese Tariffs"

The US 2% tariff pails in comparison to China's 20%

[tavalon]

25. Yeah, um, that'll work

We are no longer a world power. Try to get used to it and buy a Chinese for Dummies book. In case you weren't aware, we are China's bitch.

[defendandprotect]

16. Maybe Bush will demand they send our jobs back --- ???

China has been telegraphing this caution --

Saudis are still in, tho ---

[Azlady]

21. A dream come true..

Our troops will be able to come home if this turns out to be fact!

[JerseygirlCT]

2. He's going to have to send Daddy over there... nt

[madrchsod]

4. china`s not going to disrupt their biggest market

any reduction of trade would cause huge problems for the chinese government...

[mcollier]

6. But it does wonders for

increasing a lack of confidence around the world... Ain't Strategic Misinformational Programming a wonderful think.


On a side note...
PASS THIS AROUND EVERYWHERE...

OBAMA WILL WIN PA!

Hey Everybody If you want a really good laugh you need to see this!

Fox News Back Fire...

http://www.youtube.com/watch?v=s30vqJEM1do

[lib2DaBone]

11. That is good... I would say the whole room was for Obama

[tavalon]

26. That was hilarious

We all desperately need a laugh right now. Could you post that in a separate thread?

[thunder rising]

8. These statements are ludicrous now, we are only their best customer when we PAY. Freeloaders are

not customers

[stillcool]

10. Is the U.S. still the biggest consumer?

It seems to me that we may have financed a nice consumer society in India and China.

[TomInTib]

14. Oh, yes they would.

Pretty soon, they are going to be demanding some real (as in "real" estate) paper.

T-Bills and smoke just aren't going to cut it, any more.

Just wait.

And it won't be long.

[Crowman1979]

5. That's it, the Iraq and Afghanistan war are over!

Due to lack of funds! Looks like we'll have to curtail our empire expenses.

[truthisfreedom]

7. Oops. Not quite the legacy bush wanted. The administration struggled mightily

to push this implosion off until after the election/end of 2008 so they could blame it on Obama later, but alas, bush's legacy is now, well... he's... well... it's hard to describe how bad he looks now. Words fail me. He's irrelevant, basically.

[depakid]

9. Not LBN -and also a debunked rumor

[peacetalksforall]

13. Why is our debt not included in the bailout talks? Everything seems framed

to avoid mentioning our foreign debt. Are the China banks included in this liguidity mess?

[defendandprotect]

17. ...and don't forget what's "OFF-BUDGET" -- a little trick we taught to corporations ...

And imagine the reaction when citizens begin to absorb

reality of global warming ... !!!

[KoKo]

15. Yes....DU folks who have been reading the DU Marketeer Site here Daily posted by Ozymandius Knew...

The Chinese have been major player in buying those bonds (filled with CDO's/Credit Swaps) and junk to help out Poppy and Nixon who OPENED CHINA to USA TRADE!

They got STIFFED and they want the INTEREST on those BONDS....Wall St. Banks...and Countrywide...etc... CANNOT REPAY...so we Taxpayers have to.

That's a lot of what this is about. But, Banks, Mortgage Co's, etc. said the "Housing Party" will never end in the US! But, it did and we owe more than China....

[appal_jack]

18. Do you think they will buy our houses?

I predict that the Chinese will force a revamping of our immigration and citizenship laws, and send some of their surplus population our way. That would reinflate our housing market a lot quicker than any Failout* Plan.

-app

* Intentional spelling

[hay rick]

20. Bond buyers /holders without a sense of humor?

AAA also means you're getting towed. Guess it doesn't translate.

[happyslug]

19. China does NOT have to do this, the "Private" Chinese banks have NOT used US Dollars for years.

Even the Mob has stopped using US Dollars for any transaction NOT involving importation into the US (The Mob prefers Euros and has for at least Five years if not ten).

Private Chinese have NOT wanted US Dollars for about as long, preferring Euros or yen. The Private banks have had the same attitude, thus the Chinese Central Bank does NOT have to tell them to stop buying US Dollars, the private banks did that years ago.

On the other hand the Central Bank of China has been buying US Dollars to keep the Yuan low. As the US buy more and more Chinese items with US Dollars, that the Chinese Private banks and Citizens do not want, the Chinese's Central Banks has been buying US Dollars to make sure the Yuan does NOT go up to much.

Other reports indicate an internal fight between the Chinese Central Bank and the Chinese Finance Ministry. The Finance Ministry does NOT want the Yuan to go up but also does NOT want the Central Bank to lose money in investments in the US. The problem is to prevent the Yuan from going up, the Central Bank has to buy US Dollars and invest those Dollars in the US (into such investments as Fannie Mae). The investments are becoming more and more risky and the Financial Ministry wants no risk investments, but at the same time does not want the Yuan to go up in value. This is impossible, China has to decide which is the lesser evil, bad investments in the US or the Yuan going up in value. Right now the Central bank appears willing to sell off US Investments and permit the Yuan to go up in value. The Finance Ministry does not want EITHER, but this week may force them to either agree with the Central Bank OR overrule the Central bank. The problem is if the Finance Ministry overrules the Central bank all it is doing is delaying a huge lost in investments. No one wants that, but a decision has to be made and this report may indicate a decision was made, that China will leave the Yuan go up and China will buy no more US Treasury Bills or other US investments.

Thus the real worry is NOT private Chinese bank NOT buying US Dollars but the Central Bank itself NOT buying US Dollars.

http://www.nytimes.com/2008/09/05/business/worldbusiness/05yuan.html?ref=business
http://www.nakedcapitalism.com/2008/09/chinas-central-bank-is-short-of-capital.html
http://seekingalpha.com/article/95528-quite-a-reversal-china-central-bank-cuts-interest-rates

Article from 2006 on the US and Chinese Bubble Economies:
http://www.itulip.com/economicMAD.htm

[Darwins Doberman]

22. I guess they couldn't figure out a way to put Ricin in the loan

[SemperEadem]

23. one doesn't need the fire... the smoke will be sufficient

[olddad56]

24. but wait...

who will buy all of their cheap shit and poison food? How will our government fund our genocide in Iraq? Hey, maybe instead of bailing out wall street, we pay them off.

That will never happen, the plan is to pay them back in worthless dollars, same way will all pay for all of our fixed rate debt.

We won't be able to buy food, but we won't need toilet paper. It will will be cheaper to wipe our ass with $20 bills.


It has been an amazing 8 years. Amazing that collectively we have all been that fucking stupid.

[KoKo]

27. kick