Is this how they will end QE2?

Discussion in 'Markets & Economies' started by spets1, Apr 25, 2011.

  1. spets1

    spets1 New Member

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    from http://news.xinhuanet.com/english2010/china/2011-04/23/c_13842843.htm (chinese news website):

    Tang Shuangning, chairman of China Everbright Group (a state-owned enterprise operated under the supervision of the State Council of the People's Republic of China) said:

    First: This is a Huge announcement. As it comes from important people up there with Chinese banking etc. So they wouldn't say stuff like this for no reason.
    Second: QE2 is almost finished. End of June 2011 (couple months away). US has so far officially said that they will end QE2 and no words about QE3. IT seems they are trying to tell MSM that QE3 is not going ahead.
    Third: China comes out with this announcement! Huge! They want to dump US dollars. 2 Trillion of them. Dumping those moneys back, has the same effect as printing money, therefore no QE3 will be needed?

    We will have to wait and see.
     
    spets1, Apr 25, 2011
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  2. thatguy

    thatguy Active Member

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    tick tock... Count down to a less boring life has just skipped a few seconds
     
    thatguy, Apr 25, 2011
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  3. Skyblues

    Skyblues Member

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    They might do some wordplay and go ahead with a 'continuation or extension of QE2' instead of launching QE3, MSM would gladly buy this wordplay as it is not used questioning stuff...
     
    Skyblues, Apr 25, 2011
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  4. perthsilver

    perthsilver Member Silver Stacker

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    perthsilver, Apr 25, 2011
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  5. spets1

    spets1 New Member

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    It hasnt happened.
    The meeting is on today/tomorrow i think.
     
    spets1, Apr 26, 2011
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  6. perthsilver

    perthsilver Member Silver Stacker

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    I was refering to the "wordplay" to prepare everyone.
     
    perthsilver, Apr 26, 2011
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  7. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Hasn't the US Govt been hinting (through back channels like MSM, FOX, WSJ ) that it wants to raise it's debt ceiling (from between 2-5 trillion)?

    The Chinese may be sitting on a mountain of $US notes but for every dollar that came in they printed an even larger pile of yuan to maintain their economic advantage. A weak, watered-down currency that no one outside China really trusts, nor wants as a trade item...trading economies wil take the US petrodollar over chinese banknotes any day.

    We must remember that the same economists that write these articles about an "emergent china" are the very same writters that have been blowing the RE and stockmarket bubbles, downtreading PM's and reporting on "how great the US economy is now doing since the end of the GFC in 2008", i.e. their accuracy to date ain't been that good.

    Probably the biggest short-term economic problem that will come out of china is the end of the labour arbitrage and a rapid growth in the minimum wage (~$US1.95/hr circa 2010) to a real cost increase in the inherent labour costs of Chinese goods of between 25-40%
     
    Clawhammer, Apr 26, 2011
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