Comments on: China warns that the west’s quantitative easing is inflationary http://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html a finance news and opinion site Mon, 22 Mar 2010 06:53:58 +0000 hourly 1 By: Pesek: Asia is de-coupling - Credit Writedownshttp://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5176 Pesek: Asia is de-coupling - Credit Writedowns Sat, 09 May 2009 01:01:23 +0000 http://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5176 [...] therefore their opportunity to break free and I believe Asia will use it.(Also see related posts: China warns that the west’s quantitative easing is inflationary and Breaking news: China has been secretly stocking up on gold)SourceSummers, Geithner Are Silent [...] [...] therefore their opportunity to break free and I believe Asia will use it.(Also see related posts: China warns that the west’s quantitative easing is inflationary and Breaking news: China has been secretly stocking up on gold)SourceSummers, Geithner Are Silent [...]

]]> By: Inflation: The strategy that dare not state its name - Credit Writedownshttp://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5157 Inflation: The strategy that dare not state its name - Credit Writedowns Fri, 08 May 2009 17:05:33 +0000 http://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5157 [...] inflationary policy response is that it invites a currency and asset revulsion.  Why do you think the Chinese have been talking so much about inflation in the west?  They are pretty unhappy about the prospect that quantitative [...] [...] inflationary policy response is that it invites a currency and asset revulsion.  Why do you think the Chinese have been talking so much about inflation in the west?  They are pretty unhappy about the prospect that quantitative [...]

]]> By: aitraderhttp://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-8005 aitrader Thu, 07 May 2009 13:06:01 +0000 http://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-8005 China is also lowering it's purchase volume of treasuries and purchasing more short-term in lieue of long bonds (30 year).<br><br>This has been the basis of my argument that the current "recovery" and "green shoots" are simply irrational exuberence, and my question as to just how the US is going to finance its huge deficits?<br><br>It appears the US is printing money on one side to buy its own bonds on the other (Fed and Treasury). This is not just inflationary, it will likely destroy global confidence in the US dollar itself and jeopardizes its role as the reserve currency. The dollar's role in world trade is critical and a collapse in confidence in it portends a global trade catastrophe. <br><br>I think I have harped on the situation of multiple competing fiat "reserve" currencies with no backing of any kind trying to fund global trade. I see things degenerating into barter trade where one set of goods sitting on a ship somewhere is exchanged for another somewhere else because no stable currency of exchange exists. This will be a humdinger collapse in the volume of global trade and will give shipping companies with global reach a near monopoly over certain trade goods sold in local currencies.<br><br>As von Mises said, there is no way to gauge marginal utility without a neutral currency as measure desired by both parties. It will be interesting to see what/if this situation brings if it does in fact occur. China is also lowering it's purchase volume of treasuries and purchasing more short-term in lieue of long bonds (30 year).

This has been the basis of my argument that the current “recovery” and “green shoots” are simply irrational exuberence, and my question as to just how the US is going to finance its huge deficits?

It appears the US is printing money on one side to buy its own bonds on the other (Fed and Treasury). This is not just inflationary, it will likely destroy global confidence in the US dollar itself and jeopardizes its role as the reserve currency. The dollar's role in world trade is critical and a collapse in confidence in it portends a global trade catastrophe.

I think I have harped on the situation of multiple competing fiat “reserve” currencies with no backing of any kind trying to fund global trade. I see things degenerating into barter trade where one set of goods sitting on a ship somewhere is exchanged for another somewhere else because no stable currency of exchange exists. This will be a humdinger collapse in the volume of global trade and will give shipping companies with global reach a near monopoly over certain trade goods sold in local currencies.

As von Mises said, there is no way to gauge marginal utility without a neutral currency as measure desired by both parties. It will be interesting to see what/if this situation brings if it does in fact occur.

]]> By: aitraderhttp://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5131 aitrader Thu, 07 May 2009 09:06:01 +0000 http://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5131 China is also lowering it's purchase volume of treasuries and purchasing more short-term in lieue of long bonds (30 year).<br><br>This has been the basis of my argument that the current "recovery" and "green shoots" are simply irrational exuberence, and my question as to just how the US is going to finance its huge deficits?<br><br>It appears the US is printing money on one side to buy its own bonds on the other (Fed and Treasury). This is not just inflationary, it will likely destroy global confidence in the US dollar itself and jeopardizes its role as a the reserve currency. The dollar's role in world trade is critical and a collapse in confidence in it portends a global trade catastrophe. <br><br>I think I have harped on the situation of multiple competing fiat "reserve" currencies with no backing of any kind trying to fund global trade. I see things degenerating into barter trade where one set of goods sitting on a ship somewhere is exchanged for another somewhere else because no stable currency of exchange exists. This will be a humdinger collapse in the volume of global trade and will give shipping companies with global reach a near monopoly over certain trade goods sold in local currencies.<br><br>As von Mises said, there is no way to gauge marginal utility without a neutral currency as measure desired by both parties. It will be interesting to see what/if this situation brings if it does in fact occur. China is also lowering it's purchase volume of treasuries and purchasing more short-term in lieue of long bonds (30 year).

This has been the basis of my argument that the current “recovery” and “green shoots” are simply irrational exuberence, and my question as to just how the US is going to finance its huge deficits?

It appears the US is printing money on one side to buy its own bonds on the other (Fed and Treasury). This is not just inflationary, it will likely destroy global confidence in the US dollar itself and jeopardizes its role as a the reserve currency. The dollar's role in world trade is critical and a collapse in confidence in it portends a global trade catastrophe.

I think I have harped on the situation of multiple competing fiat “reserve” currencies with no backing of any kind trying to fund global trade. I see things degenerating into barter trade where one set of goods sitting on a ship somewhere is exchanged for another somewhere else because no stable currency of exchange exists. This will be a humdinger collapse in the volume of global trade and will give shipping companies with global reach a near monopoly over certain trade goods sold in local currencies.

As von Mises said, there is no way to gauge marginal utility without a neutral currency as measure desired by both parties. It will be interesting to see what/if this situation brings if it does in fact occur.

]]> By: Garyhttp://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5118 Gary Wed, 06 May 2009 16:03:53 +0000 http://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5118 OK, thanks! OK, thanks!

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5117 Edward Harrison Wed, 06 May 2009 16:01:29 +0000 http://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5117 Gary, basically it means bond markets are getting killed as the reflation trade takes hold.<br><br><a href="http://www.creditwritedowns.com/2009/04/treasuries-are-getting-crushed.html" rel="nofollow">http://www.creditwritedowns.com/2009/04/treasur...</a> Gary, basically it means bond markets are getting killed as the reflation trade takes hold.

http://www.creditwritedowns.com/2009/04/treasur...

]]> By: Garyhttp://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5116 Gary Wed, 06 May 2009 15:54:40 +0000 http://www.creditwritedowns.com/2009/05/china-warns-that-the-wests-quantitative-easing-is-inflationary.html#comment-5116 "Global central banks risk inflation, currency devaluation and a “big consolidation” in bond markets"<br><br>Can anyone explain what "big consolidation" means? Thanks “Global central banks risk inflation, currency devaluation and a “big consolidation” in bond markets”

Can anyone explain what “big consolidation” means? Thanks

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