Judging by the market’s reaction, investors were blinded sided today when Chinese officials increase their reserve requirement ratio for the second time during its renewed tightening cycle. But, really the only surprise was that the hike occurred just prior to the Chinese New Year, which is a week long holiday. I have been stating for […]
Archive:
February 2010
According to the China Securities Journal, Chinese banks lent almost CNY1.4 trn in new loans during January–third-largest monthly total on record. This was less than the CNY1.6 trn some outlets has been speculating on, but far more than what I expect the government would have liked. But, considering that it was reported that CNY1.1 trn […]
It looks like over the short-term the Fed will be using interest on excess reserves as its primary monetary policy tool to aid in its removal of excess liquidity from the market. This is the interest rates paid to banks on excess reserves held at the Fed. These comments continue to indicate accommodative monetary policy […]
FRANKFURT (MNI) – Germany’s government is not allowed to help Greece, as such aid would violate European Union law, German business daily Handelsblatt reported Wednesday, citing an internal report from the German parliament. The legal report also rules out any form of financing of the Greek budget through the ECB or national central banks. “Moreover, […]
EU Commissioner Joaquín Almunia Mira recently said that he believes the current situation is the most difficult situation the EU has ever faced, and that Thursday’s meeting will be critical. He also said EU leaders have indicated that they will support Greece. Fitch anticipates that a Greek plan is ‘achievable’, but not ‘a given’. Fitch’s […]
ABC News (Australia)is reporting that, “A Reserve Bank official says the head of the European Central Bank, Jean-Claude Trichet, is leaving a Sydney meeting of central bankers early to attend an ECB council meeting.” I expect this means investors could anticipate some market moving news related to troubled EU nations over the next few days.
According to CNBC, James Bullard,President Federal Reserve Bank of St. Louis, indicated in an interview today that *he does not believe the Fed will begin hiking interest rates, until after they start selling off some assets. He anticipates that the Fed could begin selling assets during the second half of this year. Bullard had this […]
According to the China Securities Journal Yao Jingyuan, chief economist of China’s National Bureau of Statistics, said “Money supply is too big and that’s leading to excess liquidity.” He went on to say, “I would prefer reserve hikes to rate hikes because rate hikes could cause hot money to flow back.” Jingyuan’s comments are further […]
Intellectual property, mobile internet technology and national censorship make an incendiary mix for global business and consumerism. This was brought to center stage recently with the escalating disagreement between Google and the Chinese government over privacy rights for online content. The clash of swords has most recently become a truly intergovernmental affair as well with […]
I finally caved and opened a Twitter account for Fiat Economics: https://twitter.com/FiatEconomics I plan on using this to post short timely financial/economic musings that pop into my head throughout the day. The expect some days will have many while others will be rather slow.