Powerful Chinese economy shows it's prospering once again
23 replies, posted
[QUOTE](Reuters) - China's key money rates fell on Tuesday morning as dealers in the interbank market ignored a massive 178 billion yuan ($28.62 billion) drain by the central bank during open market operations, the largest single-day drain since February.
The weighted average seven-day bond repurchase agreement rate stood at 3.4176 percent by mid-morning, down from 3.5238 percent at Monday's close.
Traders said there was enough liquidity in the market to keep downward pressure on rates, even as the People's Bank of China (PBOC) vacuumed up excess cash.
"The market reaction to the drain wasn't much, because actually money's not in short supply, and in addition if you look at the auction of deposits this morning, the net effect was a cash injection," said a dealer at a city commercial bank in Shanghai.
Zhou Hao, economist for ANZ Bank in Shanghai, said that the market was waiting for aggregate money supply data this morning, and predicted that the PBOC would keep rates low if new loans and M2 growth come in below expectations.[/QUOTE]
[url]http://www.reuters.com/article/2014/04/15/us-markets-china-bonds-idUSBREA3E07420140415[/url]
I don't understand shit about economics. This article was like chinese to me.
"Cash injection"? What the hell?
[QUOTE=Zero Ziat;44549598]I don't understand shit about economics. This article was like chinese to me.
"Cash injection"? What the hell?[/QUOTE]It's where they grind up dollars into powder, dissolve it in alcohol, and inject it straight into a person's veins.
[QUOTE=Zero Ziat;44549598]"Cash injection"? What the hell?[/QUOTE]
[img]http://assets.nerdwallet.com/blog/investing/files/2012/09/money-printing-press1.jpeg[/img]
To increase the flow of money (and therefor the speed of economic growth), more cash is printed and given to (usually) the government to spend on various things.
[QUOTE=Sgt Doom;44549610]It's where they grind up dollars into powder, dissolve it in alcohol, and inject it straight into a person's veins.[/QUOTE]
If I was going to college I would have believed you.
[QUOTE=Sgt Doom;44549610]It's where they grind up dollars into powder, dissolve it in alcohol, and inject it straight into a person's veins.[/QUOTE]
I do it to get high
I read that as "powerful cheese economy" and was very disappointed when I realized the mistake, who cares about china, cheese is where the shit is at.
[QUOTE=Sgt Doom;44549610]It's where they grind up dollars into powder, dissolve it in alcohol, and inject it straight into a person's veins.[/QUOTE]
cures poor circulation
[QUOTE=Zero Ziat;44549598]I don't understand shit about economics. This article was like chinese to me.
"Cash injection"? What the hell?[/QUOTE]China trains a bunch of hackers to hack into enemy supply centers, it's a common tactic really.
When I heard that I imagined the voice of the chinese bulldozers in Command & Conquer Generals where he says "Building the Chinese empire!"
[video=youtube;gLw7TbgO3Ew]http://www.youtube.com/watch?v=gLw7TbgO3Ew[/video]
This must be the reason why they softened that One-Child Policy.
We have big plans.
[QUOTE=maxumym;44551884]We have big plans.[/QUOTE]
And small penises.
[sp]sorry :c[/sp]
[QUOTE=Zero Ziat;44549598]I don't understand shit about economics. This article was like chinese to me.
"Cash injection"? What the hell?[/QUOTE]
I think the theory is this: Money rates should go UP as cash available falls, because people are competing for fewer dollars(or yuan). But in this case rates went down even though the central bank removed billions from circulation.
This 'cash injection' is a result of activity in their money market, activity which caused enough new money to get dropped into circulation that it overrode the central bank's withdrawal of money.
It just goes to show how complex an economy is, and how there is no easy way to pull a string and have the economy do exactly what you want. Speculators can have a huge effect on things if they spend enough money.
Don't they have massive debt problems just like the U.S?
[QUOTE=thelurker1234;44549621]I do it to get high[/QUOTE]
I do it to get higher class
[QUOTE=Sgt Doom;44549610]It's where they grind up dollars into powder, dissolve it in alcohol, and inject it straight into a person's veins.[/QUOTE]
I hear it can make a guy feel like a million bucks.
[QUOTE=Angus725;44549614][img]http://assets.nerdwallet.com/blog/investing/files/2012/09/money-printing-press1.jpeg[/img]
To increase the flow of money (and therefor the speed of economic growth), more cash is printed and given to (usually) the government to spend on various things.[/QUOTE]
Maybe I'm wrong, but doesn't that just result in inflation?
[QUOTE=cqbcat;44553540]Maybe I'm wrong, but doesn't that just result in inflation?[/QUOTE]
zimbabwe is a prime example
[QUOTE=JohnnyOnFlame;44552629]And small penises.
[sp]sorry :c[/sp][/QUOTE]
China has big genitals
[QUOTE=cqbcat;44553540]Maybe I'm wrong, but doesn't that just result in inflation?[/QUOTE]
No, it depends on how the market absorbs said money.
Plus, there is a difference between (a number followed by the M letter, like M2, M3) the money that is "in the streets" and the money that is inside banks and accounts.
That's why the US can print whatever the fuck they want and still get a measly 5-6% annual inflation rate, because most of the dollars are inside banks in other countries.
And that's why because the Argentine peso is at a annual 30%, because everybody wants to get rid of it ASAP and there's no point in saving in a bank.
[QUOTE]I think the theory is this: Money rates should go UP as cash available falls, because people are competing for fewer dollars(or yuan). But in this case rates went down even though the central bank removed billions from circulation.
This 'cash injection' is a result of activity in their money market, activity which caused enough new money to get dropped into circulation that it overrode the central bank's withdrawal of money.
It just goes to show how complex an economy is, and how there is no easy way to pull a string and have the economy do exactly what you want. Speculators can have a huge effect on things if they spend enough money.[/QUOTE]
It worked with the japanese, who were saving themselves to death....
[QUOTE=Sgt Doom;44549610]It's where they grind up dollars into powder, dissolve it in alcohol, and inject it straight into a person's veins.[/QUOTE]
Does it cure AIDS?
[QUOTE=anis;44553049]Don't they have massive debt problems just like the U.S?[/QUOTE]
Every nation has large amounts of debt.
[QUOTE=Zero Ziat;44549598]"Cash injection"? What the hell?[/QUOTE]
[t]http://skeptikai.com/wp-content/uploads/2013/01/Money-Syringe.jpg[/t]
No?
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